Personal Finance

What are the actual requirements for opening a bank account in Canada?

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  • Oct 7th, 2019 8:46 am
Deal Fanatic
Jan 21, 2018
9652 posts
10924 upvotes
Vancouver

What are the actual requirements for opening a bank account in Canada?

There are a lot of bank promo offers on RFD inviting us to open new accounts, but the experience of people trying to open those accounts varies widely. I've certainly encountered huge variations in procedures and requirements over the years. Usually the bank staff will tell you that it's government regulations, but clearly that's not true given the variations, just an excuse for in-house bureaucracy. I've opened bank accounts easily online, while in other cases I had to spend hours in person in a branch signing forms and producing ID.

Which makes me wonder, what are the actual requirements? Does anybody know for sure? Is there some online information?

I would think it's obvious that the bank wants basic personal identity information like your name/address/phone number, but is that a government regulation? As far as I know you aren't required to keep the bank up to date on your address when you move, or your current phone number. What if you don't have a phone? What if you're homeless, or living temporarily with someone else without even being a resident of the province?

I would think that the government requires a SIN number for Canadians for tax purposes. But non-residents are allowed to open Canadian bank accounts, so it can't be a universal requirement.

Birthdate? Maybe paired with SIN, but is it a government requirement, or just basic identity information they try to collect? What if they have it wrong? Would anyone notice?

Is the bank required to verify your identity? If so, is it spelled out how they are required to verify identity in a government regulation? Are they required to see specific government documentation like a driver's licence or passport? I've opened bank accounts online without having to provide copies of any ID. Usually in person the bank asks for a photo ID, and usually a 2nd ID which can be a credit card - but I would doubt that the government would require them to see a credit card. And I've seen non-residents of Canada open a bank account without a credit card.

The banks often seem to verify identity with the credit-rating companies Equifax and Transunion, but as far as I know those are private companies with no official government connection, so that could not be a government requirement. Those companies often have outdated or inaccurate information on Canadians, and wouldn't have any at all on non-residents. Maybe the bank wants to verify credit-worthiness when you open a chequing account because in theory you could write bad cheques even though your account has no over-draft protection?

While bricks & mortar banks often require you to make an appointment and show up in person, online banks can't do that. Most of them seem to want an opening deposit with a personal cheque from another financial institution, which I guess is an easy way for them to verify your identity courtesy of someone else. But I doubt that a bit of paper from another company would satisfy a government regulation, so it can't be a requirement.

What about the other stuff they ask you like your occupation, or your purpose for opening the account? Is any of that a government requirement?

What about these new questions lately like are you opening this account on behalf of someone else? Is that a government requirement?
20 replies
Deal Addict
Feb 28, 2014
1020 posts
1206 upvotes
This is what i know:

Depending on your relationship with them, even opening online bank accounts will require photo ID, be it in branch or verification at Canada Post. Almost all banks/credit union will pull your credit history as a form of verification as well. For taxation purposes, they will also collect your SIN. As for occupation, if you're opening an account on someone else's behalf & purpose for opening the account, those are mandated as part of anti-money laundering.

As for doing initial deposit, that's not a requirement, I haven't ran into a case where they force you to do any initial deposit, you can open a 0 balance account even at a brick & mortar location.
Deal Fanatic
Jan 21, 2018
9652 posts
10924 upvotes
Vancouver
deltatux wrote: Depending on your relationship with them, even opening online bank accounts will require photo ID, be it in branch or verification at Canada Post.
Well that one at least is certainly not true, as I have opened several new online bank accounts recently with banks I have never dealt with before, and none of them required photo ID.

This is an example of why I'm asking these questions - we all have individual experience, but it's hard to distinguish what's a factual requirement vs. misinformation from bank staff who don't know themselves.
Newbie
Jul 29, 2019
47 posts
108 upvotes
You can refer to https://www.canada.ca/en/financial-cons ... count.html

In Canada, you have the right to open a bank account at a bank or a federally regulated credit union as long as you show proper identification.
You can open an account even if you:
don’t have a job
don’t have money to put in the account right away
have been bankrupt
To open an account, you usually have to:
go in person to a financial institution
provide an acceptable form of identification
You may be able to open a bank account with the proper identification in Canada if you’re not a Canadian citizen or if you live in another country.

The site also says SIN is required.
Banned
Sep 20, 2019
86 posts
16 upvotes
I opened my TD checking without SIN.

There was no interest on the account so no need for a SIN. But I did have to give 2 pieces of photo ID.

The worst experience was opening a Simplii Financial account. Took ages to open it and lot of steps and delays and waiting because of their fault.
Deal Addict
Feb 28, 2014
1020 posts
1206 upvotes
Scote64 wrote: Well that one at least is certainly not true, as I have opened several new online bank accounts recently with banks I have never dealt with before, and none of them required photo ID.

This is an example of why I'm asking these questions - we all have individual experience, but it's hard to distinguish what's a factual requirement vs. misinformation from bank staff who don't know themselves.
You missed the key phrase which was "depending on your relationship with them". I've opened accounts with online banks that I never had to provide any sort of photo ID. However, they used my credit history and the fact that I can link to another financial institution was enough for a verification for them. They're just basically trusting the other FI to have done a photo ID check for you, which in the Financial Services Agency requirements, it's Option 3 as found here:
https://www.canada.ca/en/financial-cons ... .html#toc2
Banned
Sep 20, 2019
86 posts
16 upvotes
Scote64 wrote: Well that one at least is certainly not true, as I have opened several new online bank accounts recently with banks I have never dealt with before, and none of them required photo ID.

This is an example of why I'm asking these questions - we all have individual experience, but it's hard to distinguish what's a factual requirement vs. misinformation from bank staff who don't know themselves.
Yes Tangerine I opened without photo id, but Simplii I had to do the whole Canada Post thingy.
Deal Fanatic
Nov 22, 2015
7851 posts
8801 upvotes
Scote64 wrote: Well that one at least is certainly not true, as I have opened several new online bank accounts recently with banks I have never dealt with before, and none of them required photo ID.

This is an example of why I'm asking these questions - we all have individual experience, but it's hard to distinguish what's a factual requirement vs. misinformation from bank staff who don't know themselves.
Did you deposit a cheque from another financial institution?

Some online banks use in-person verification at Canada Post, OR they can validate by processing a cheque in your name. As long as the cheque clears, is in your name, and is MICR encoded, they can be reasonably sure that an account in your name exists and that you likely had to produce ID when you opened THAT account.
Deal Fanatic
Nov 22, 2015
7851 posts
8801 upvotes
FCAC stipulates that anyone can open an account at brick and mortar bank with as little as 1 piece of valid ID.

If you provide only 1 piece of ID, most banks will limit your access to your account, as well as prevent you from opening additional accounts. ID requirements beyond FCAC regulations are entirely up to the individual bank - that said, most banks require 2 pieces of valid ID in order to open accounts in an unrestricted fashion.
Deal Fanatic
Jan 21, 2018
9652 posts
10924 upvotes
Vancouver
deltatux wrote: You missed the key phrase which was "depending on your relationship with them". I've opened accounts with online banks that I never had to provide any sort of photo ID. However, they used my credit history and the fact that I can link to another financial institution was enough for a verification for them. They're just basically trusting the other FI to have done a photo ID check for you, which in the Financial Services Agency requirements, it's Option 3 as found here:
https://www.canada.ca/en/financial-cons ... .html#toc2
Thanks for that link. That certainly answers a few of my questions about government regulations.

But I don't see where it allows a financial institution to depend on another financial institution for ID when opening an account. I have certainly opened online accounts where I provided no ID, and no initial link to another institution. They may well have checked with someone like Equifax or Transunion (for example as B2B is doing), but does that satisfy a government regulation?
Deal Addict
Feb 28, 2014
1020 posts
1206 upvotes
Scote64 wrote: Thanks for that link. That certainly answers a few of my questions about government regulations.

But I don't see where it allows a financial institution to depend on another financial institution for ID when opening an account. I have certainly opened online accounts where I provided no ID, and no initial link to another institution. They may well have checked with someone like Equifax or Transunion (for example as B2B is doing), but does that satisfy a government regulation?
Well, FCAC doesn't regulate the banks, OSFI does & I believe those requirements do satisfy OSFI or else why would so many banks offer it as a way to verify who you are. If you're really concerned, you can read up the Bank Act and ask FCAC and/or OSFI to confirm.
Deal Fanatic
Apr 5, 2016
6116 posts
4613 upvotes
Calgary/Vancouver
Speaking for BMO, you just need one piece of photo ID or two pieces of non photo ID to open account. That's the basic requirements and nothing else is required. The banks are obliged to ask for your SIN if you're opening an account with interest. You can refuse but your account will still be reported to CRA. They are also obliged to ask again within 90 days. Another part of this is also tax residency. You will have to fill out a RC518 Form indicating your tax residency and SIN.

Also, it is true that you have a right to basic banking but if you're being difficult and not answering questions, they could build a case you may be doing fraudulent activity and may also limit your transactions and put max holds on your cheques.

It's really not a big deal in providing info. Lot of times it works in your favor by giving you pre-approved offers or lower rates.
Deal Addict
Jan 2, 2015
1633 posts
639 upvotes
Toronto, ON
Scote64 wrote: There are a lot of bank promo offers on RFD inviting us to open new accounts, but the experience of people trying to open those accounts varies widely. I've certainly encountered huge variations in procedures and requirements over the years. Usually the bank staff will tell you that it's government regulations, but clearly that's not true given the variations, just an excuse for in-house bureaucracy. I've opened bank accounts easily online, while in other cases I had to spend hours in person in a branch signing forms and producing ID.

Which makes me wonder, what are the actual requirements? Does anybody know for sure? Is there some online information?

I would think it's obvious that the bank wants basic personal identity information like your name/address/phone number, but is that a government regulation? As far as I know you aren't required to keep the bank up to date on your address when you move, or your current phone number. What if you don't have a phone? What if you're homeless, or living temporarily with someone else without even being a resident of the province?

I would think that the government requires a SIN number for Canadians for tax purposes. But non-residents are allowed to open Canadian bank accounts, so it can't be a universal requirement.
You don't have to have one for a basic chequing account, but it is required if you will earn any interest, or do any investing. Since most people have a savings account, you need to give it over. It's so common that bankers probably get confused if you don't want to hand yours over.
Birthdate? Maybe paired with SIN, but is it a government requirement, or just basic identity information they try to collect? What if they have it wrong? Would anyone notice?
I don't know if that's necessary for basic accounts, but if you want an RRSP (where age is crucial) it's mandatory.
Is the bank required to verify your identity? If so, is it spelled out how they are required to verify identity in a government regulation? Are they required to see specific government documentation like a driver's licence or passport? I've opened bank accounts online without having to provide copies of any ID. Usually in person the bank asks for a photo ID, and usually a 2nd ID which can be a credit card - but I would doubt that the government would require them to see a credit card. And I've seen non-residents of Canada open a bank account without a credit card.
They must verify your identity. Money laundering by terrorists is a thing. Just take a look at the various cryptocurrency scandals.
The banks often seem to verify identity with the credit-rating companies Equifax and Transunion, but as far as I know those are private companies with no official government connection, so that could not be a government requirement. Those companies often have outdated or inaccurate information on Canadians, and wouldn't have any at all on non-residents. Maybe the bank wants to verify credit-worthiness when you open a chequing account because in theory you could write bad cheques even though your account has no over-draft protection?
These are not required, but much like getting your SIN, it probably confuses the banker if you say no. Of course, your credit rating doesn't just impact your overdraft protection. Your unreleased funds limit (how much you can take out of an ATM, and how much you get immediately when you deposit a cheque) is based on this as well. Banks will typically limit this to $500 for ATM withdrawals and can go as low as $100-$200 for cheques if they can't get this info, or if your credit is bad. They also want to sell you credit stuff. Online banks also use this to help verify your identity.
What about the other stuff they ask you like your occupation, or your purpose for opening the account? Is any of that a government requirement?
Yes. They just want to make sure that you're not a "mule" for someone. (Of course, real money mules lie.)
What about these new questions lately like are you opening this account on behalf of someone else? Is that a government requirement?
Yes. Money laundering is a thing. The local mob boss doesn't want to use a bank account (as he recalls what happens to Al Capone), so he gets a mule to open a bank account for him. If something goes wrong, the mule gets blamed by the bank and government. If the mule tries to run away with that money, well... it's a dangerous mob boss. Bad idea.
Deal Fanatic
Jan 21, 2018
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Vancouver
FoFai2015 wrote: You don't have to have one for a basic chequing account, but it is required if you will earn any interest, or do any investing. Since most people have a savings account, you need to give it over. It's so common that bankers probably get confused if you don't want to hand yours over.

I don't know if that's necessary for basic accounts, but if you want an RRSP (where age is crucial) it's mandatory.

They must verify your identity. Money laundering by terrorists is a thing. Just take a look at the various cryptocurrency scandals.

These are not required, but much like getting your SIN, it probably confuses the banker if you say no. Of course, your credit rating doesn't just impact your overdraft protection. Your unreleased funds limit (how much you can take out of an ATM, and how much you get immediately when you deposit a cheque) is based on this as well. Banks will typically limit this to $500 for ATM withdrawals and can go as low as $100-$200 for cheques if they can't get this info, or if your credit is bad. They also want to sell you credit stuff. Online banks also use this to help verify your identity.

Yes. They just want to make sure that you're not a "mule" for someone. (Of course, real money mules lie.)

Yes. Money laundering is a thing. The local mob boss doesn't want to use a bank account (as he recalls what happens to Al Capone), so he gets a mule to open a bank account for him. If something goes wrong, the mule gets blamed by the bank and government. If the mule tries to run away with that money, well... it's a dangerous mob boss. Bad idea.
I understand the reasons why the bank might want some of this information, and why anyone (including bank staff) might think it's a government regulation, but my question is what exactly are the actual government regulations, and where do we find out? There has certainly been some useful information in this thread, but if you think something is a regulation, can you point to where the government actually says that? Even if you work at a bank and collect that information every day, you may have been told by someone else that it's a regulation, without actually verifying it. That seems to happen a lot.

I recall opening an account at CIBC a couple of years ago to get some promo offer, and at the time I had just come back from a conference where we had a scary seminar on the potential damages of identify theft and just how careless people and organizations were with unnecessary sharing of confidential personal information. When the CIBC rep asked for a bunch of what seemed to be unnecessary information, I said No to most of it. They seemed really taken aback, but grudgingly agreed that most of it wasn't actually required to open the account, although they warned that my deposits would be held for 5 days. I said fine, worth it for the privacy, and no more was said. I also said No when they asked me to authorize a credit check, but I don't think they honored that because within a short time I started getting "pre-approved" offers from them to take out credit cards and open an LOC. :)
Deal Fanatic
Mar 21, 2010
6737 posts
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Toronto
Scote64 wrote: I understand the reasons why the bank might want some of this information, and why anyone (including bank staff) might think it's a government regulation, but my question is what exactly are the actual government regulations, and where do we find out? There has certainly been some useful information in this thread, but if you think something is a regulation, can you point to where the government actually says that? Even if you work at a bank and collect that information every day, you may have been told by someone else that it's a regulation, without actually verifying it. That seems to happen a lot.

I recall opening an account at CIBC a couple of years ago to get some promo offer, and at the time I had just come back from a conference where we had a scary seminar on the potential damages of identify theft and just how careless people and organizations were with unnecessary sharing of confidential personal information. When the CIBC rep asked for a bunch of what seemed to be unnecessary information, I said No to most of it. They seemed really taken aback, but grudgingly agreed that most of it wasn't actually required to open the account, although they warned that my deposits would be held for 5 days. I said fine, worth it for the privacy, and no more was said. :)
Right here:

https://laws-lois.justice.gc.ca/eng/reg ... ge-14.html

s. 64(1)

Also:

https://laws-lois.justice.gc.ca/eng/reg ... age-1.html

s. 4(1)
Deal Fanatic
Jan 21, 2018
9652 posts
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Vancouver
Thanks, that's a helpful reference on "Ascertaining Identity", with particular respect to money laundering regulations. It's a little vague on some points like what constitutes a reliable source, but it does have specific mention of things like consulting a credit record, so it does seem to be what the banks are using as a guide. If the bank is required to ascertain your identity in order to open an account, then surely they would use the same checklist.

And that 2nd link you added seems to address the question even more directly.
Banned
Mar 11, 2016
2081 posts
893 upvotes
why is OP so confused....prev posting:

In Canada, you have the right to open a bank account at a bank or a federally regulated credit union as long as you show proper identification.
You can open an account even if you:
don’t have a job
don’t have money to put in the account right away
have been bankrupt
To open an account, you usually have to:
go in person to a financial institution
provide an acceptable form of identification
You may be able to open a bank account with the proper identification in Canada if you’re not a Canadian citizen or if you live in another country.


Beyond this and within these rather vague requirements the Financial Institution can do whatever to heck it wants...it is a corporation not Crown Corporation that will do what it feels is best for its business and risk...if you don't like the requirements of Bank A then go to Bank B..cause guess what? Bank A does not give a shit
Deal Fanatic
Jan 21, 2018
9652 posts
10924 upvotes
Vancouver
Fjr2005 wrote: why is OP so confused....prev posting:

In Canada, you have the right to open a bank account at a bank or a federally regulated credit union as long as you show proper identification.
You can open an account even if you:
don’t have a job
don’t have money to put in the account right away
have been bankrupt
To open an account, you usually have to:
go in person to a financial institution
provide an acceptable form of identification
You may be able to open a bank account with the proper identification in Canada if you’re not a Canadian citizen or if you live in another country.


Beyond this and within these rather vague requirements the Financial Institution can do whatever to heck it wants...it is a corporation not Crown Corporation that will do what it feels is best for its business and risk...if you don't like the requirements of Bank A then go to Bank B..cause guess what? Bank A does not give a shit
Not the OP who is confused, but rather the staff of many financial institutions who do not seem to be able to distinguish what is a government regulation and what is only a bank preference or practice.

For example I have recently been trying to make some existing bank accounts joint, where both parties already had their own account at that bank. HSBC said that it was a government regulation that they had to create a new joint account rather than make an existing account joint, and they required both parties to come in for an hour appointment to sign new paperwork. Hubert Financial said "sure, who do you want to add", and that was it.

Hence my request for links to actual government regulations rather than a list based on informal experience. Some of the posters have supplied those links, so thanks to all. Now we have something concrete to refer to when questions come up!
Banned
Mar 11, 2016
2081 posts
893 upvotes
the government regulations are not lengthy at all....on most other issues each bank has different policies...ie BNS if you have a joint account and you want to remove one person you have to close the account and open a new one. TD...not...you can remove a person and keep the original account...requirements for making an account joint or opening anew account will also differ widely ....has nothing to do with legislation..
Deal Addict
Dec 25, 2017
3320 posts
2372 upvotes
If your talking about getting an account, at all, anywhere, all you need is a piece of acceptable ID (Drivers License, Provincal ID, etc). They can’t discriminate you and refuse to open an account at any federal regulated institution.

Canada Post verifying ID for direct banks is a normal thing. Because you can’t go to their branch to verify your ID, they outsource it to CP to do it for them. Anything less is the bank’s way to reasonably validate your identity using provided information but ID is the “real” way.
SIN number isn’t required to open an account.
Some may demand (and you should provide then) a SIN number or refuse to open an account. I’d had it happen where they’ll demand a SIN, even in person sign ups, to open the account for me.

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