The 2019 Budget includes a proposal to introduce legislation to implement a new retail payment oversight framework in order to regulate payment service providers (PSPs) in Canada. While the budget provides few details about the proposed regulatory framework, we expect that it will be based on a 2017 discussion paper released by the Department of
The Financial regulations: Services tomorrow Team
New anti-money laundering rules in Canada: A brief impact analysis
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) recently released the final version of the regulations amending the Regulations to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (as amended, the Regulations). The Regulations govern anti-money laundering (AML) rules in Canada. The changes in the Regulations…
OSFI proposes changes to the Foreign Bank Branch Deposit Requirement
The Office of the Superintendent of Financial Institutions (OSFI) has proposed revisions to Guideline A-10, the “Foreign Bank Branch Deposit Requirement”, (the Guideline), formerly known as the Capital Equivalency Deposit. The revisions to the Guidelines address regulatory standards for authorized foreign banks’ minimum deposit to be held in trust.
The revisions…
How should Canada regulate digital asset exchanges?
Although the Bitcoin craze has recently fallen by the wayside, parties interested in digital and crypto-assets continue to press forward despite unclear regulations.…
Beneficial ownership requirements for federally incorporated entities soon to come into effect
Starting June 13, 2019, private companies that are incorporated under the Canada Business Corporations Act (the “CBCA”) will have to establish a securities register detailing all “individuals with significant control” over the corporation (the “ISC Register”) in accordance with Bill C 86, the Budget Implementation Act, 2018, No. 2. The…
New oversight framework proposed for Canada’s payments system
In the 2019 federal budget, the government has proposed new legislation to help implement a new retail payments oversight framework that will enable retail payment services providers (PSPs) to continue to offer innovation in services, while remaining reliable and safe. The global payments landscape is rapidly changing as innovative technologies are challenging…
Open Banking in Canada – current regulatory insights
Open banking is a safe and secure technology that allows consumers to enable banks to disseminate their information to third party services providers. As a concept, open banking is more developed in other countries such as the United Kingdom (the UK) and Australia. In Canada, the concept is steadily evolving and is still being…
U.S. Reporting Companies Must Disclose Brexit Risks
Brexit—whether it happens or not, and in what form it might (or might not) take—will shock the global marketplace. Yet despite the known unknowns in these tumultuous times, there is one certainty for public reporting companies in the United States: Brexit risks must be disclosed.
On March 15, 2019, William Hinman, Director of the SEC’s…
FINTRAC introduces tools to assist reporting entities with AML obligations
Recently, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced the introduction of a set of tools (the Tools) aimed at supporting Canadian reporting entities (REs), including financial institutions, in meeting their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act). The…
OSFI proposes changes to the Liquidity Adequacy Requirements
The Office of the Superintendent of Financial Institutions (OSFI) has issued proposed revisions (the Revisions) to certain chapters of the Liquidity Adequacy Requirements (LAR) guidelines. The LAR set out the framework that Canadian deposit-taking institutions (DTIs) must follow to mitigate the risk of a stressed environment leading to insufficient…