Under the AML/CTF Act, a reporting entity can contract out the task of carrying out the applicable customer identification procedure on its behalf to an agent. However, the ultimate responsibility of identification and verification of customers still remains with the reporting entity.

Chapter 7 of the AML/CTF Rules specifies circumstances where certain types of reporting entities may rely on the customer identification procedures carried out by another reporting entity, including circumstances where either:

• the customer identification procedure was conducted by a licensed financial adviser in the process of arranging for a customer to receive a designated service from the other reporting entity
• the two reporting entities are members of the same designated business group.

The reporting entity that did not conduct the identification procedure either obtains a copy of the record (from the other reporting entity) or needs to have access to the other reporting entity's records.