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Anti-Money Laundering Requirements

On May 27, 2021, Convocation approved by-law amendments to implement changes that have been made to the Federation of Law Societies of Canada’s Model Rules to fight money laundering and terrorist financing.

The Law Society will produce supports to assist licensees with understanding and complying with the new requirements prior to the amendments coming into effect January 1, 2022. 

The amendments ensure that the Law Society’s requirements aimed at fighting money laundering and terrorist financing are comprehensive, effective and up-to-date. In addition, the amendments:

  • Preserve solicitor-client privilege and the independence of the bar by maintaining the Law Society’s anti-money laundering (AML) rules separate from the federal government’s AML regime
  • Require licensees to conduct sufficient diligence on client transactions to ensure that they do not unwittingly become involved in illegal activity or act recklessly with respect to money laundering
  • Enhance existing provisions aimed at combatting money laundering and terrorist financing, to preserve the Law Society’s regulatory authority in this area vis-à-vis the federal government.

For more information, see the report to Convocation and the information on the Federation of Law Societies of Canada’s website.

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