Identification Verification

IDV, also known as IDV, is a crucial step for every client or third party who requires legal services. It is a Law Society requirement to verify the identities of clients who are retained, to confirm that the client is who they claim to be and to prevent fraud.

While there are rare exceptions, generally all IDs must be authentic, valid, and current. Exceptions may apply for example when in-person meetings are held.

There are five verification methods:

1. Government-issued photo identification method:
- This is verified in person, where a lawyer or paralegal will physically examine a government-issued photo ID. They must ensure it is authentic, valid and current, and issued by a federal/provincial/foreign government that is equivalent to a Canadian document.
- This ID must include a person’s name, photo, distinctive identifying number, and must match the name/appearance of the person being identified.

2. Credit file method:
- This must be obtained by a Canadian credit bureau (e.g. Equifax, TransUnion). The credit file must have been in existence for 3 years or more, and the information the client provides (i.e., their name, date of birth, and address) must match the information on the credit file. This can be verified virtually.
- Lawyers and paralegals must receive the credit file directly from the credit bureau, not the client.

3. Dual process method:
- Two pieces of ID must be provided from a reliable source and verified by a lawyer or paralegal. These IDs or documents must verify two of the following:
(1) The client’s name and address
(2) The client’s name and date of birth
(3) Documents/information to verify name and confirm a financial account
- These documents must be authentic, valid, and current. Photocopies, faxes, and electronic images are not permitted. The document must be either an original paper document or an electronic document issued by a reliable source.
- Reliable sources include documents issued by the Canadian Government, insurance companies, utility companies, banks, etc.

4. Virtual verification with an authentication method:
- The use of technology is involved to compare features of a valid government-issued ID. This includes known characteristics (size, texture, character spacing, format, etc.), security features (holograms, magnetic strips, etc.), and markers (logos and symbols).
- The client must scan their government-issued IDs using a camera on their electronic device
- Trusted third-party authenticators such as First Canadian Title (FCT) and DocuSign are used to verify IDs.

5. Using an agent method:
- A lawyer or paralegal can use an agent to verify a client’s identity only if:
- Before the agent acts, the licensee and agent have a written agreement
- The licensee obtained information from the agreement from the agent
- The licensee is satisfied that the information is valid and current, while also complying with the verification requirements.

ID verification is an integral part of a lawyer and paralegal’s Law Society obligations and adds additional benefits such as reducing the frequency of fraud and granting greater certainty to one’s identity to lenders.