Retail Payment Activities Act (S.C. 2021, c. 23, s. 177)

National Security

Marginal note:National security order

• 96 (1) The Minister may, by order, direct a payment service provider that performs retail payment activities to take or to refrain from taking any measures related to the performance of retail payment activities if the Minister is of the opinion that it is necessary to do so for reasons related to national security.

• Marginal note:Opportunity for representations

  (2) Subject to subsection (3), no order is to be made under subsection (1) unless the payment service provider is provided with a opportunity to make representations in respect of the matter.

• Marginal note:Temporary order

  (3) If, in the Minister’s opinion, the length of time required for representations to be made might be prejudicial to the public interest, the Minister may make a temporary order that has the same effect as an order made under subsection (1). The temporary order ceases to have effect 30 days after the day on which it is made or after the expiration of a shorter period that is specified in the order.

• Marginal note:Continued effect

  (4) The temporary order continues to have effect after the expiration of the 30-day or the shorter period if no representations are made to the Minister within that period or, if representations are made, the Minister notifies the payment service provider that the Minister is not satisfied that there are sufficient grounds for revoking the order.

Marginal note:Copy to Bank

97 The Minister must provide the Bank with a copy of each order the Minister makes under subsection 96(1) or (3) and the Bank must, as soon as feasible, provide a copy to the individual or entity in question.

Marginal note:Court enforcement

• 98 (1) If an individual or entity is not complying with an undertaking provided in accordance with section 42, a condition imposed under section 43 or an order made under section 96, the Minister may, in addition to any other action that may be taken under this Act, apply to a superior court for an order requiring the individual or entity to comply with the undertaking, condition or order.

• Marginal note:Powers of court

  (2) The court may make the order and may make any other order the court thinks fit.

• Marginal note:Appeal

  (3) An appeal from an order made under subsection (2) lies in the same manner and to the same court as an appeal from any other order of the court.

PART 6Assessment Fees

PART 7Regulations

Marginal note:Regulations

• 101 (1) The Governor in Council may, on the recommendation of the Minister, make regulations for the purposes of this Act, including regulations

  • (a) respecting risk management and incident response frameworks;

  • (b) respecting any account referred to in paragraph 20(1)(a) or (c) and the insurance or guarantee referred to in paragraph 20(1)(c);

  • (c) respecting the holding of end-user funds by a payment service provider referred to in subsection 20(1) and the measures to be taken by the payment service provider to ensure that end-user funds or proceeds from any insurance or guarantee referred to in paragraph 20(1)(c) are payable to end users in the event of an insolvency or other specified event;

  • (d) respecting the provision of information in relation to the holding of end-user funds with the Canada Deposit Insurance Corporation or a member institution as in section 2 of the Canada Deposit Insurance Corporation Act;

  • (e) respecting the acquisition of control for the purposes of section 24;

  • (f) respecting the circumstances in which information referred to in subsection 64(1) may be used as evidence;

  • (g) prohibiting, limiting or restricting the disclosure by payment service providers of information referred to in subsection 64(1);

  • (h) designating, as a violation that may be proceeded with under Part 5, the contravention of a specified provision of this Act or the regulations;

  • (i) classifying each violation as a minor violation, a serious violation or a very serious violation, classifying a series of minor violations as a serious violation or a very serious violation or classifying a series of serious violations as a very serious violation;

  • (j) designating, as a violation that may be proceeded with under Part 5, the non-compliance with an agreement entered into under section 71;

  • (k) establishing a penalty or a range of penalties in respect of a violation up to a maximum of $10,000,000;

  • (l) if a range of penalties is established by regulations made under paragraph (k), setting out the method of establishing the amount payable as the penalty for the violation, including the criteria to be taken into account;

  • (m) specifying the additional penalty referred to in paragraph 82(1)(b);

  • (n) respecting the service of documents under Part 5, including the manner and proof of service and the circumstances under which documents are deemed to be served;

  • (o) respecting the keeping and retention of records; and

  • (p) prescribing anything that by this Act is to be prescribed.

• Marginal note:Registration fee

  (2) A registration fee is prescribed for the purposes of subsection 29(2) if a method for determining the amount of the registration fee is prescribed.

Marginal note:Statutory Instruments Act

102 The Statutory Instruments Act does not apply in respect of

• (a) an order made under section 19;

• (b) a directive issued under section 40;

• (c) an order made under section 42 or 43;

• (d) a notice issued under section 45;

• (e) a directive issued under subsection 46(2) or section 47;

• (f) a notice issued under section 52;

• (g) an order made under subsection 94(1) or (4); or

• (h) an order made under subsection 96(1) or (3).

PART 8Transitional Provisions

Marginal note:Definition of transition period

103 In this Part, transition period means the period that begins on the day on which section 29 comes into force and ends on the day before the day on which subsection 25(1) comes into force.

Marginal note:Application required

104 A payment service provider that performs or plans to perform retail payment activities during the transition period must, within the prescribed period that begins on the day on which section 29 comes into force, apply to the Bank for registration in accordance with that section.

Marginal note:Prescribed periods

• 105 (1) For greater certainty, a regulation that prescribes a period within which something is to be done or may be done under this Act in relation to an application for registration may distinguish between applications that are submitted during the transition period and applications that are submitted after the end of that period.

• Marginal note:Period suspended for Centre

  (2) If subsection 53.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, as enacted by section 181 of the Budget Implementation Act, 2021, No. 1, comes into force before or during the transition period, the 30-day period referred to in that subsection is, in relation to an application for registration that is submitted during the transition period, suspended until the end of the transition period.

Marginal note:Prohibition on disclosure of outcome of application

106 During the transition period, the Bank must not disclose the outcome or likely outcome of an application to the applicant unless a directive in relation to the applicant is issued to the Bank under section 40.

Marginal note:Exception to subsection 62(1)

107 Despite subsection 62(1), the Bank may publish the names of applicants that submit applications during the transition period as well as any prescribed information in relation to those applications.

Marginal note:Non-application of section 23

108 Starting on the day on which section 23 comes into force, that section does not apply to a payment service provider who submits an application during the transition period until the earlier of

• (a) the day on which the Bank notifies the payment service provider under subsection 25(2) that it has been registered; and

• (b) the day on which the Bank notifies the payment service provider under subsection 48(3) or section 49 of a refusal to register.