In this issue:

• Successful DSign electronic application update
• Remote sales: Use the dual identification method for new clients whenever possible
• Estate settlement request over $100,000: Original documents no longer required
• COVID-19 and business continuity | Recap of best practices:
  • Insurance
  • Investments
• Business accounts | Compliance reminders regarding anti-money laundering and anti-tax evasion requirements
• Video testimonials to leverage in your client conversations
• Major changes | Insurance contracts now being mailed
• Electronic application update: Credit card payments
• December 2020 campaign for Guarantee Advantage

SUCCESSFUL DSIGN ELECTRONIC APPLICATION UPDATE

The electronic signature and remote sales process update that were announced on September 24 are now available in the DSign electronic application. Please see the referenced articles to refresh your memory.

Thank you for your patience.

REMOTE SALES: USE THE DUAL IDENTIFICATION METHOD FOR NEW CLIENTS WHENEVER POSSIBLE

Since the chat or selfie identification of new clients requires a further dual identification to fulfill FINTRAC requirements, we strongly encourage you to use the dual ID method whenever possible.

Here are the measures to follow when recording information from 2 pieces of ID:

• Insurance products: The electronic application has been modified to help you enter information from a document with your client’s full name and address as well as a piece of ID, when applicable*.
• Investment products: The Identification by Dual Process – Remote Services form must be filled out and attached to the electronic application.

*For universal life, participating life and permanent life insurance products that offer cash surrender values or a savings component. (Products subject to the anti-money laundering (AML) and anti-tax evasion (ATE) requirements.)

Updating files of clients who were identified using the chat or selfie method

You must keep a record of all new clients you identified using the chat or selfie method. To fulfill FINTRAC requirements, here is the procedure to follow when updating your clients’ files:

1. Identify your client

• In person with 1 piece of photo ID
• Remotely with 2 pieces of ID
  • 1 document with their full name and date of birth
  • 1 document with their full name and address

For a list of accepted documents, refer to Identifying clients.

2. Complete the Identification by Dual Process – Remote Services form

3. Return the form to us

4. Put a copy of the form in your client’s file

5. Destroy all the copies of ID that you received

Update files of clients who have been identified using the chat or selfie method since March 15, 2020

If you haven’t sent us information from your client’s second piece of ID, complete steps 2 through 5 to follow up.

Questions?

Contact your compliance officer.

ESTATE SETTLEMENT REQUEST OVER $100,000: ORIGINAL DOCUMENTS NO LONGER REQUIRED

It was decided to no longer require original documents (proof of death, will, form, etc.) for estate settlement requests over $100,000. With the implementation of this new measure, we are hoping to ease the process for our clients going through a difficult time. 

Exceptions

Deaths occurring outside Canada or the United States still require original documents. 

Moreover, in some rare cases, we may still request original documents even if the death occurred in Canada or the United States. We will let you know if we do.

COVID-19 AND BUSINESS CONTINUITY | RECAP OF BEST PRACTICES

As the second wave begins in Quebec, we’re doing everything we can to ensure your clients’ financial well‑being while still protecting our employees’ health. Thank you for continuing to follow these best practices.

Use electronic methods whenever possible

Insurance

Investments

See the COVID-19 section

You can access the business continuity plan at all times. The COVID-19 section also contains all of our messages related to COVID-19, an FAQ, and more details about our remote service offering, plus some useful links.

You can find it at Insurance or Investments > In addition > COVID-19 - Business continuity plan.

Thank you for doing business with us!

BUSINESS ACCOUNTS: COMPLIANCE REMINDERS REGARDING ANTI-MONEY LAUNDERING AND ANTI-TAX EVASION REQUIREMENTS

When selling products subject¹ to anti-money laundering (AML) and anti-tax evasion (ATE) requirements, the product account opening form as well as the Identity verification supplementary form (08295) must be properly completed. It is also essential to provide the required documentation.

Audits have identified some gaps regarding mandatory information on forms:

• The purpose and intended nature of the investment
• The occupation must always be indicated in a precise manner (e.g. building engineer, grocery manager, etc.)
• Getting two valid pieces of ID² and their reference number is the key to a successful identity check!

Let us take this opportunity to remind you of some requirements:

1. Obtaining a document confirming the signing authority of the company

When opening a business account, you must obtain an official document confirming that the signing authorities have the authority to act. This official document usually takes the form of a resolution from the company’s board of directors, but it may also be a power of attorney document or a mandate. This resolution establishes that the board of directors has granted the signatories the power to make contractual commitments on behalf of the company. This is a regulatory prerequisite for record keeping related to anti-money laundering. However, we noticed some shortcomings in this matter; it is essential to obtain this document.

2. Identification of beneficial owners in AML

A beneficial owner can either be a legal entity or an individual, who holds 25% or more of the ownership or control of the entity.

However, the ultimate beneficial owner cannot be another entity or another legal person. They must be individuals who own or control the entity.

It is necessary to waive anonymity and to formally identify beneficial owners. This makes it possible to determine who is actually responsible for the transactions and activities in the account. This is a key component of Canada’s anti-money laundering and anti-terrorist financing regime. Concealing the identity of beneficial owners (accounts, businesses and transactions) is a technique frequently used in this type of scheme.

3. Entity classification and declaration of tax residence 

When opening an account for any AML- or ATE regulated products, the company must indicate its tax residence in the appropriate section of the account opening form or any related forms. Moreover, depending on the nature of its activities, the entity must also determine its classification (active entity, passive entity, financial institution, etc.).

For example, a company may need to certify or clarify the nature of its activities, provide information regarding the people who control it and indicate where is was incorporated. Financial institutions need this information to meet their CRA tax reporting requirements.

If you have any questions on this matter, please contact your compliance advisor.

¹ Examples include a cash surrender value life insurance policy, non-registered segregated funds and annuities as well as guaranteed investment funds. Registered products are excluded from anti-money laundering and anti-tax-evasion regulations.

² In these times of physical distancing, a remote verification of identity requires complete information on 2 pieces of identification.

VIDEO TESTIMONIALS TO LEVERAGE IN YOUR CLIENT CONVERSATIONS

Testimonial videos are powerful marketing tools of real-life stories that can engage clients in conversation.

To help you in your business development efforts, Desjardins Insurance released 3 short video stories from Canadians who didn’t have a financial backup plan prior to their health challenge. 

Use this content to bring forth awareness of the value of a plan B before advising solutions best suited for their needs. 

Key awareness points communicated: 

• Financial health and well-being are closely linked.
• The importance of having a financial backup in place, no matter your age or your lifestyle.
• Desjardins cares for your well-being.

Watch and share

The testimonials can be found on Webi under Promotions and communications > Tools > Videos.

MAJOR CHANGES | INSURANCE CONTRACTS NOW BEING MAILED

Because we’ve had limited access to our offices during the pandemic, we had to review our process for sending out contracts following a major change. Our teams are now ready to resume mailing contracts to our members and clients. Here’s our planned timeline:

We're counting on you to deliver them safely to your clients as soon as possible.

ELECTRONIC APPLICATION UPDATE: CREDIT CARD PAYMENTS

A slight change has been made to the email sent to clients who want to pay their insurance by credit card. Here are the instructions they’ll receive:

1. Click https://www.desjardinslifeinsurance.com/en/individual-insurance/life-health-disability-insurance/pay-your-insurance-by-credit-card.
2. Click Continue.
3. Enter this payment code: (for example 3VTV JC3YN S6BJ).
4. Follow the onscreen instructions to fill out the form.

The deadline for filling out the authorization form will also be clearly indicated.

DECEMBER 2020 CAMPAIGN FOR GUARANTEE ADVANTAGE

Here are the terms and baskets of securities available for the current campaign.