Why PayPal requires your Identity Proof?
Paypal is the widely used online payment mode by Canadians as well as business and individuals around the globe. One thing Paypal ensures and is always praised of is it’s security and safe online money transactions. For this and other legal issues to stop money laundering PayPal always asks your Identity proof when you join the Paypal or use any of its service.
In Canada PayPal is required under Canadian anti-money laundering laws to collect certain information about PayPal customers and, in some cases, verify that the information they collect is accurate. Therefore PayPal may collect and record information that confirms your identity, including names, addresses, dates of birth, phone numbers, occupations and details on the nature of your business for individuals and business entities.
Paypal may also request supporting documentation to assist them in verifying the information you’ve provided and you will be prompted with an alert in your account profile to fulfill the request.
In case Paypal is unable to verify your identity, Canadian anti-money laundering laws do not permit them to conduct certain transactions on your behalf. PayPal may deny a requested product or service and/or disable some functionality on your account, such as the ability to send or receive payments, until they complete your identity verification.
Documents required for Identity proof by Paypal
PayPal may require all or a combination of the following documents (must be your most recent statement):
For Proof of Identity (POI):
- Statement of CPP Contributions from your Service Canada online account
- Statement from your insurer (life, home, or auto)
For Proof of Address (POA):
- Notice of Assessment or Reassessment
- Municipal Property Tax Assessment
- CRA (Canada Revenue Agency) statement such as a requirement to pay, installment notice or benefits statement
- Student record from registered Canadian college or university (post-secondary institution)
For Proof of Funds (POF):
- Electricity bill
- Gas bill
- Water bill
- Telephone bill / cellphone bill
- Credit card statement
- Bank account statement
- Loan account statement
The process to complete your identity check depends on PayPal as they review the documents you’ve provided and often this happens within 48 hours, but in some cases it may take longer.
If you do not complete the identity verification process, some functionality on your PayPal account could be limited, and you may be prevented from sending or receiving payments.
Note that if you have already provided this information for another one of your accounts, then also each account must undergo its own Identity verification. Finally remember that Paypal Canada uses the term Customer Identification Program (CIP) in their website for such kind of verifications to be completed.