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 Those companies often have outdated or inaccurate information on Canadians, and wouldn't have any at all on non-residents.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?
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?