Canada

Canada’s proposed oversight framework for retail payments

By Daniel Leslie (CA) on September 5, 2019 Posted in Banking, Canada

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 … Continue Reading

New anti-money laundering rules in Canada: A brief impact analysis

By Daniel Leslie (CA) on July 25, 2019 Posted in Anti-money laundering, Canada, Regulation and compliance

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 are quite substantial and, given … Continue Reading

OSFI proposes changes to the Foreign Bank Branch Deposit Requirement

By Daniel Leslie (CA) on July 10, 2019 Posted in Banking, Canada, Regulation and compliance

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 include changes to the Guideline … Continue Reading

How should Canada regulate digital asset exchanges?

By Patrick Chou, Anthony de Fazekas and John Kim on June 20, 2019 Posted in Canada, crypotcurrency

Although the Bitcoin craze has recently fallen by the wayside, parties interested in digital and crypto-assets continue to press forward despite unclear regulations. … Continue Reading

Open Banking around the world | A global comparative guide

By Simon Lovegrove (UK) and Alan Bainbridge (UK) on June 20, 2019 Posted in Africa, Asia, Australia, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Canada, Germany, Italy, The Netherlands, United Kingdom, United States

The UK continues to be the global pioneer in open banking through the implementation of the EU PSD2 and the CMA open banking initiative. However, through regulatory reforms and/or market-led initiatives, many jurisdictions are now catching up. Working with our colleagues across the globe, we have produced a comparative guide to open banking as part … Continue Reading

Beneficial ownership requirements for federally incorporated entities soon to come into effect

By Daniel Leslie (CA) on May 24, 2019 Posted in Anti-money laundering, Canada, General, Securities Law

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 purpose of the ISC Register … Continue Reading

Consensus New York & Blockchain week – key takeaways

By Hannah Meakin (UK) and Etelka Bogardi (HK) on May 21, 2019 Posted in Africa, Asia, Australia, Canada, Fintech, Fintech, FinTech, Fintech, Fintech, Fintech, Fintech, Fintech, Fintech, Germany, Italy, The Netherlands, United Kingdom, United States

Partners from our global FinTech team flew in from Hong Kong, Vancouver, London and Dallas to join our New York team to attend Consensus and Blockchain week in NYC (13-15 May).  Consensus is an annual global conference which brings together the world’s most innovative minds to explore and debate the future of blockchain and crypto. … Continue Reading

New oversight framework proposed for Canada’s payments system

By Daniel Leslie (CA) and Olga Lenova (CA) on May 6, 2019 Posted in Banking, Canada, General

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 traditional payments systems. … Continue Reading

Open Banking in Canada – current regulatory insights

By Daniel Leslie (CA) on April 8, 2019 Posted in Banking, Canada, General, Regulation and compliance

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 deliberated … Continue Reading

FINTRAC introduces tools to assist reporting entities with AML obligations

By Daniel Leslie (CA) on March 11, 2019 Posted in Anti-money laundering, Canada, Regulation and compliance

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 Tools include FINTRAC’s compliance framework, FINTRAC’s … Continue Reading

Bill C-86 Strengthens Bank Act’s Consumer Protection Regime

By Olga Lenova (CA) on March 4, 2019 Posted in Banking, Canada

In March 2018, the Financial Consumer Agency of Canada released findings of their review of domestic bank retail sales practices, concluding that banking culture focused on selling products and services increased the risk that consumer interests were not being given proper weight. Following release of these findings, Bill C-86 was introduced and received royal assent … Continue Reading

OSFI proposes changes to the Liquidity Adequacy Requirements

By Daniel Leslie (CA) on February 28, 2019 Posted in Banking, Canada, Capital adequacy

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 liquidity. The Revisions are a response … Continue Reading

Emerging Fintech innovation trends propelled by a global initiative

By Vincent Caron (CA) on February 26, 2019 Posted in Banking, Canada, Fintech, Regulation and compliance, Securities Law

The Global Financial Innovation Network (GFIN), a network of 29 state financial sector regulators and supervisors committed to supporting financial innovation in the interests of consumers, including Quebec’s Autorité des Marchés Financiers (AMF) and the Ontario Securities Commission, has announced the launch of a pilot phase of cross-border testing and knowledge sharing initiative for Fintech … Continue Reading

Canadian House of Commons tables a Modern Slavery Bill

By Benedict Wray (CA) on February 7, 2019 Posted in Canada, Regulation and compliance

On 13 December 2018, a private members Bill entitled “Modern Slavery Act” was tabled in the Canadian House of Commons. The Bill, if passed, would require certain corporations linked to Canada to report on the measures they take to prevent and reduce the risk of forced or child labour in their businesses and supply chains.  … Continue Reading

FINTRAC amplifies requirements for Suspicious Transaction Reporting

By Daniel Leslie (CA) on February 1, 2019 Posted in Anti-money laundering, Canada, Money laundering, Regulation and compliance

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has recently updated its industry guidance (Revised Guidance) in relation to the filing of suspicious transaction reports (STRs). The Revised Guidance reflects FINTRAC’s increased expectations as to certain key requirements for filing STRs. Reporting entities, including financial entities, are encouraged to revisit their current approach … Continue Reading

Lloyd’s of London announces that it does not consider insuring Canadian cannabis risks a breach of UK money laundering legislation

By Andrew Reeves (UK) on December 14, 2018 Posted in Anti-money laundering, Canada, Investigations and enforcement, Money laundering, United Kingdom

The production of recreational cannabis was legalised in Canada in October 2018. As a consequence, UK corporates and financial institutions wishing to invest or be involved in activity relating to Canadian cannabis businesses face a real obstacle: doing so could technically constitute a criminal offence under UK money laundering legislation (see our previous blog here). … Continue Reading

OSFI issues final guideline on asset securitization

By Daniel Leslie (CA) on December 5, 2018 Posted in Canada, Insurance, Regulation and compliance, Securities Law

The Office of the Superintendent of Financial Institutions (OSFI) has issued a final version of Guideline B-5: Asset Securitization (the Guideline), which sets out OSFI’s general expectations for asset securitization transactions undertaken by federally regulated insurance companies. The existing guideline on asset securitization was first published in November 2004, and does not adequately account for … Continue Reading

OSFI issues final versions of the capital adequacy requirements and the leverage requirements guidelines

By Daniel Leslie (CA) on November 7, 2018 Posted in Banking, Canada, Capital adequacy

The Office of the Superintendent of Financial Institutions (OSFI) has issued its final version of the Capital Adequacy Requirements (CAR) guideline and Leverage Requirements (LR) guideline. OSFI updates its CAR guideline periodically to ensure capital requirements reflect the underlying risks and developments in the financial industry. The LR guideline supplements this by setting out the … Continue Reading

The USMCA – Impact on the financial services sector

By Daniel Leslie (CA) on October 18, 2018 Posted in Canada

On September 30, 2018, Canada and the United States announced they had reached a resolution on certain trade issues and agreed on the text of a new trilateral trade agreement with Mexico to be called the United States-Mexico-Canada Agreement (USMCA). Once ratified, the USMCA will replace the longstanding trilateral North American Free Trade Agreement (NAFTA). … Continue Reading

OSFI issues final corporate governance guidelines

By Daniel Leslie (CA) on September 19, 2018 Posted in Banking, Canada, Capital adequacy, General, Regulation and compliance

The Office of the Superintendent of Financial Institutions (OSFI) has issued its final version of the Corporate Governance Guideline (CGG). The CGG sets out OSFI’s expectations for boards of directors of federally regulated financial institutions (FRFIs). The CGG applies to all FRFIs other than the Canadian branch operations of foreign banks and insurance companies. The … Continue Reading

CSA confirms position on bail-in implications

By Daniel Leslie (CA) on September 6, 2018 Posted in Banking, Canada, Capital adequacy, General, Regulation and compliance

The Canadian Securities Administrators (CSA) recently released two notices on the implementation and regulation of the Canadian bail-in regime, namely: CSA Staff Notice 46-309, in connection with the regulation of Bail-in Debt (as defined below); and CSA Staff Notice 81-331, in connection with the implications of the bail-in regime on investment fund issuers, subject to … Continue Reading

Canadian Cannabis and Money Laundering Risks for UK Business

By Claire O'Donnell (UK), Katie Stephen (UK), Andrew Reeves (UK) and Thomas Hubbard (UK) on August 14, 2018 Posted in Anti-money laundering, Canada, Money laundering, United Kingdom

Medical cannabis is already big business in Canada. With the production of recreational cannabis due to be legalised there in October 2018 that business is expected to continue to grow, with Deloitte estimating that the total legal cannabis market will generate some CAD4.34 billion in 2019. However, UK corporates and financial institutions wishing to invest … Continue Reading

OSFI proposes changes to the leverage requirements guideline

By Daniel Leslie (CA) on August 7, 2018 Posted in Banking, Canada, Capital adequacy, General, Regulation and compliance

The Office of the Superintendent of Financial Institutions (OSFI) has released proposed revisions to the Leverage Requirements (LR) guideline in order to align with upcoming modifications to Chapter 4 (Settlement and Counterparty Risk) and Chapter 7 (Securitization) of the Capital Adequacy Requirements (CAR) guideline. The LR set out the framework for the leverage ratio, which … Continue Reading

Implementation of the final Basel III reforms in Canada – request for comments

By Daniel Leslie (CA) on July 17, 2018 Posted in Banking, Canada, Capital adequacy, General, Regulation and compliance

The Office of the Superintendent of Financial Institutions (OSFI) has released a discussion paper on the proposed implementation of the final Basel III reforms in Canada. The reforms were published in December 2017 and, in summary, seek to: Enhance credibility in the calculation of risk-weighted assets. Improve the comparability and transparency of banks’ capital ratios. … Continue Reading