FINTRAC ~ Identification of a Partnership
The identification of a partnership is somewhat complex under the rules.
While on the one hand, there are often some basic documents and registrations in place, a partnership can be verbal. So, there are no photocopies of anything.
At the very least, you should be able to obtain a copy of the “business style” registered under the Business Names Act. That is a provincial matter and you should be able to obtain a copy upon the payment of the prescribed fee.
That Act contains the following:
2 (3) No persons associated in partnership shall carry on business or identify themselves to the public unless the firm name of the partnership is registered by all of the partners.
(3.1) No persons associated in partnership shall carry on business or identify themselves to the public under a name other than a firm name registered under subsection (3) unless the name is registered by all of the partners.
The Act then calls for registration of the “firm name” and the obligation to only use that firm name and no other name.
For partnerships that are verbal, the next step would be to identify each of the partners as individuals. That Individual Identification plus their confirmation that they are acting “in partnership” should be sufficient. This really should only apply in respect to newly formed partnerships which haven’t attended to registration of a name under the Business Names Act.
According to FINTRAC, here is a list of what it would find acceptable:
- Partnership agreement
- Articles of association
- City business licence
- Business registry with the province or territory
- Any other similar record that confirms its existence
Certainly, for most partnerships, this type of documentation should be available.
More complex partnerships will have some paperwork. Seeing and examining the original partnership agreement would be sufficient, but there are times when such documents contain many items of a confidential nature, so that the partners are reluctant to make it available.
This best recourse here would be to have an agent or mandatary attest to examination, review and confirmation of the partnership. Consider the case of a large 500 lawyer law firm. They don’t want their partnership information made “public”, since it is of a confidential nature.
So, you contact their accountants or auditors and retain them to act as a mandatary. They confirm the partnership and you have satisfied your obligations under FINTRAC.
Brian Madigan LL.B., Broker