Finmo has introduced features to streamline compliance process for the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) 2024 regulations to help you meet the new requirements with ease and confidence.
A dedicated "Fraud & risk assessment" section has been added into the application. This centralized hub allows brokers to perform all necessary compliance checks, record keeping, and assessments required for each deal. Here brokers can choose to use a third-party ID verfication (paid feature)
Or manually record the "Risk assessment checks" themselves (free)
To watch a video on how to enable third-party features for Fintrac on Finmo click the arrow below:
Ways to record ID verification in Finmo
There are two options on Finmo:
Third-party verification with Persona (paid feature) or manual ID verification (free)
Third-party ID verification with Persona (paid)
Finmo has partnered with Persona to provide seamless Integration to request ID verification directly within Finmo.
Important: A team administrator on Finmo must enable "Third-party ID verification" in the "Compliance" section of the "Team settings" and a credit card must be entered to enable the service for the team
Why use third-party ID verification?
Persona analyzes government-issued photo IDs, checking for authenticity by examining pixel data and comparing it against official databases.
Results are saved in Finmo, with clear indicators of pass or fail statuses.
How much does third-party ID verification cost?
CAD $2.50 per verification.
Manual ID verification (free)
Brokers can choose to verify identity using government-issued photo ID, credit files,
dual-process (e.g. utility bill plus another ID) or affiliate methods themselves or by recording details from face-to-face meetings.
How to enable third-party ID verification with Persona (team admins only)
1. Click on the "gear" icon in Finmo
2. Select "Compliance" on the left menu
3. Turn the toggle to "Yes" in the "ID verification section
Important: You must have a credit card entered in the billing section of Finmo to enable
The credit card will be billed $4.99 for each ID verification ordered.
How to request ID verification using third-party validation (paid feature)
Click the arrow below to watch a video:
1. In the application choose "Fraud & risk assessment" from the left menu and click on "Request ID verification"
2. The borrower will receive an email to consent to the validation
What is the borrower experience using Persona's ID verification?
1. Once consented to by clicking the "Verify my ID" option in the email sent to them, borrowers will be guided through Persona's verification process.
2. Borrower provides consent
3. Select ID type
4. Take a selfie of the front of their face and both sides
5. Upon successful verification, the broker will receive a confirmation of the
complete ID verification and can view the verification report in Finmo.
6. Verification reports are stored in the borrower's document section within the application and can be viewed and/or downloaded at any time.
Sample Report
Below is a sample report which can be added to your compliance documentation.
Note: the status of "Passed" or "Failed" is indicated in Finmo and on the report.
What if a borrower fails the third-party ID verification?
In the event a borrower fails the third-party ID verification, that status will be displayed in the "ID verification section" of the application and on the report itself.
1. The report status will be displayed in red in the "ID verification" section under "Fraud & risk assessment".
2. Brokers will be able to see and review the reasons for the failure in the report.
Understanding the report:
If the report indicates the fail was because a borrower wasn't able to complete the verification (ie: they weren't able to provide an acceptable selfie or clear picture of an ID) and tries five times, it will fail.
Example:
You can request the verification again and you will not be charged twice.
3. If the fail is a result of the borrower's ID or answers to the identification questions and the verification was able to be completed and failed for a legitimate reason, you can choose to request another verification (for an additional $4.99 charge).
Does the IDV request have a time limit? The borrower is getting a "session expired or link expired" screen
If the borrower is trying to access the link and is seeing a "session expired or link expired" screen below are the possible reasons:
The inquiry has actually expired. (The link is only valid for 30 days).
The inquiry was completed and the link cannot be accessed again.
The user added PII (personally identifiable information) to the inquiry - e.g., uploaded their Gov ID in the IDV flow - and then closed the browser. Once the user re-opens the link, it will show the Session expired screen. If no PII has been added to the inquiry, a user can close the browser and re-open the inquiry without issue.
The device handoff link expired. When prompted to upload a license or selfie, a user can select “Continue on another device” and scan the QR code to continue on said device.
Note: The device handoff link is only active for 7 days. Once that link expires the inquiry will also expire.
Please click on the chat bubble in Finmo to ask to have the inquiry reset.
Common reason ID verifications fail
The quality of the photo taken could be a reason for a verification fail.
Taking photos for online ID verification that get approved on the first try comes down to three main factors: lighting, focus, and avoiding glare.
Here are the exact steps to capture the perfect ID photo:
Turn off your flash: Camera flashes create bright white spots and glare that obscure text. Instead, place your ID on a flat, dark, non-reflective surface and shoot under bright, natural overhead light.
Eliminate shadows and glare: Hold your phone directly parallel to the ID (not at an angle). If you see a reflection, tilt your body or the ID slightly until the glare disappears.
Ensure sharp focus: Tap your phone screen on the text to lock the focus before snapping the picture. Blurry text is the #1 reason for automatic rejections.
Fill the frame: Position your ID inside the camera's crop marks or frame, leaving a small, even border. Make sure no fingers are covering the corners or the photo.
Capture all four corners: Every edge of your ID must be clearly visible against the background.
To pass online verification with a Canadian driver's license, you must prevent the high-security features from causing glare or distortion. Canadian licenses use highly reflective laminate coatings and holographic overlays that easily trigger automated AI rejections.
Follow these specific steps to photograph your Canadian license successfully:
1. Position for Reflective Security Overlays
Angle the light source: Place your license on a flat surface, but position yourself between the light source and the ID.
Watch the hologram: Ensure the laser-engraved ghost photos and holographic elements (like the provincial coats of arms) do not create a white-out glare over your primary details or main photo.
Avoid window glares: Do not shoot directly next to a window where direct sun can blow out the text.
2. Prepare the Correct Background
Use a matte, dark surface: Place the license on a dark blue, black, or dark grey table.
Do not use paper: Avoid white printer paper or paper towels, as they bounce light back and cause overexposure.
Contrast the edges: The edges of Canadian licenses (especially older versions) are pale. A dark background helps the AI scanner detect all four corners instantly.
3. Frame the Core Details
Keep it perfectly flat: Do not hold the license in your hand. Your fingers will block critical security patterns on the edge.
Align the barcode: If the platform asks for the back of the license, make sure the 2D barcode is completely clean, dry, and in sharp focus.
Clean the camera lens: Wipe your phone lens before shooting to remove oils that create a "halo" effect around the license text.
Persona uses advanced machine learning to scan your ID in real-time, meaning it will reject the image instantly if it detects any pixelation, cropped edges, or hidden security patterns. The platform requires a live capture through your phone's camera rather than a pre-taken photo upload.
Follow this checklist to clear Persona's automatic checks on the first try:
1. Master the Live Capture Framing
Wait for the green frame: Persona overlays a bounding box on your screen. Hold your phone completely still until the frame turns green, which signals the AI has detected all four corners.
Do not tilt your phone: Keep your phone completely parallel to the license. Angling the camera distorts the font shapes, causing Persona's Optical Character Recognition (OCR) to fail.
Leave a thin border: Position the license so it fills about 80% of the on-screen box. Leaving a slight dark border around the edges helps the AI confirm the document is not cropped.
2. Bypass Persona's Liveness & Glare Detection
Diffuse your room light: Persona actively checks for "flash glare" and high contrast. If you are under a bright ceiling light, take a step back so the light hits the license from an angle rather than directly from above.
Watch the secondary photo: Ensure the small, secondary ghost image on your Canadian license is completely visible and not washed out by reflections, as Persona cross-references both images to verify authenticity.
Keep your fingers off: Never hold the card. Persona's algorithm is trained to flag human fingers as a potential masking attempt, resulting in an immediate rejection.
3. Handle the Barcode Scan (Back of Card)
Let the camera autofocus: When prompted for the back of the card, hold the camera steady for 3 seconds to let it lock onto the 2D barcode.
Avoid glare on the stripe: The magnetic stripe and barcode on Canadian licenses are highly glossy. If the camera is struggling to read it, slightly tilt the top edge of your phone toward you to redirect the reflection away from the lens.
How to manually record ID verification (free)
1. Choose the "Fraud & risk assessment" section of the application from the left menu when in the application. Scroll down to "Risk assessment checks" and select "Yes" in the Identity verification completed" field and choose the "Method used to verify identiy" and "Save".
2. Next fill in the "Know your Client" (KYC) check section by inputting all necessary information, such as ID type, document numbers, and issuing country etc and "Save changes".
3. Once entered and saved the record is saved within the application for compliance purposes.
Additional Resources
Should you have any questions please click on the chat bubble in Finmo. :)