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

Marginal note:Duty to register

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  25 (1) Subject to sections 35, 37, 48 and 49, the Bank must register any individual or entity that applies for registration.

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  Marginal note:Notice of registration

  (2) The Bank must, as soon as feasible, notify the applicant in writing that the applicant has been registered.

Marginal note:Registry

26 The Bank must maintain a registry of registered payment service providers and must make public the name of each registered payment service provider, its address and any prescribed information in relation to the payment service provider, the activities it performs or its registration.

Marginal note:List of refusals and revocations

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  27 (1) The Bank must maintain and publish a list of the individuals or entities that the Bank has refused to register and the payment service providers that have had their registrations revoked. The list must set out the reasons for a refusal or revocation.

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  Marginal note:Reviews

  (2) The Bank must not add an individual, entity or payment service provider to the list unless the prescribed period for requesting the applicable review under section 41, 46, 50 or 53 has expired or the refusal or revocation has been confirmed under the section in question.

Marginal note:Execution of documents

28 Any document required or permitted to be executed or signed by more than one individual for the purposes of this Act may be executed or signed in several documents of similar form, each of which is executed or signed by one or more of the individuals. The documents, when executed or signed by all individuals required or permitted, as the case may be, to do so, are deemed to constitute one document for the purposes of this Act.

Marginal note:Form, manner and information

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  29 (1) An applicant for registration must submit an application in the prescribed form and manner that includes

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    (a) the applicant’s name and any name under which the applicant performs or plans to perform payment functions as a service or business activity;

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    (b) the applicant’s address and any prescribed contact information;

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    (c) a declaration that states whether the applicant operates or plans to operate out of a dwelling-house;

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    (d) a description of how the applicant is organized or structured and, as applicable, any prescribed information in relation to the applicant’s incorporation, affiliated entities, directors and managers or owners;

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    (e) a list of the applicant’s agents and mandataries that perform retail payment activities in the scope of their authority as an agent or mandatary and any prescribed information in relation to those agents and mandataries;

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    (f) a description of the retail payment activities the applicant performs or plans to perform, including any prescribed information in relation to the volume and value or estimated volume and value of those retail payment activities;

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    (g) the number of end users or estimated number of end users for whom the applicant performs or plans to perform retail payment activities;

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    (h) any prescribed information in relation to end-user funds that the applicant holds or plans to hold;

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    (i) a description of the applicant’s risk management and incident response framework or the framework that the applicant plans to establish and implement;

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    (j) any prescribed information in relation to the manner in which the applicant safeguards or plans to safeguard end-user funds;

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    (k) any prescribed information in relation to any of the applicant’s third-party service providers that have or will have a material impact on the applicant’s operational risks or the manner in which the applicant safeguards or plans to safeguard end-user funds;

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    (l) a declaration that states whether the applicant is registered with the Centre;

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    (m) a declaration that states whether the applicant has a place of business in Canada;

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    (n) a declaration that states whether the applicant has applied for registration or is registered under a provincial Act respecting retail payment activities;

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    (o) in the case of an applicant that does not have a place of business in Canada, the name and address of an agent or mandatary in Canada that is authorized, on behalf of the applicant, to accept notices given or served under this Act as well as orders made under this Act; and

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    (p) any information in relation to the applicant or the retail payment activities the applicant performs or plans to perform that is prescribed for the purposes of sections 34 to 45.

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  Marginal note:Registration fee

  (2) The applicant must include the prescribed registration fee with the application.

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  Marginal note:Additional information

  (3) The applicant must provide the Bank with any additional information that the Bank requests in relation to the information referred to in subsection (1) within 30 days after the day on which the request is made.

Marginal note:Notice of change in information

30 An applicant that becomes aware that information provided as part of the application has changed or is about to change must notify the Bank of the change or anticipated change as soon as possible after becoming aware of it and the Bank must then, as soon as possible, notify the Minister and any person or government authority designated under section 32.

Marginal note:Duty to notify and provide information

31 The Bank must, as soon as feasible after it is of the opinion that an application for registration is complete, notify the applicant that the application is complete and provide the Centre with the information referred to in paragraphs 29(1)(a) to (f) and any information respecting the applicant that is under the Bank’s control and is prescribed for the purposes of this section.

Marginal note:Designation

32 The Minister may designate a person or government authority for the purposes of sections 33, 39 and 60.

Marginal note:Copy of application

33 The Bank must, as soon as feasible after it is of the opinion that an application for registration is complete, provide the Minister and any designated person or government authority with a copy of the application.

Marginal note:Review of application

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  34 (1) The Minister may, within the prescribed period, decide to review an application for registration if the Minister is of the opinion that it is necessary to do so for reasons related to national security. In that case, the Minister must notify the Bank of the decision and the Bank must then notify the applicant.

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  Marginal note:Extension of decision period

  (2) The Minister may extend the prescribed period for one or more prescribed periods if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.

Marginal note:Prohibition on registration

35 The Bank must not register an applicant during a period referred to in subsection 34(1) or (2) unless the Minister informs the Bank that the Minister has decided not to review the application for registration.

Marginal note:Timeline for review of application

36 If the Minister decides to review an application for registration, the Minister must conduct the review within the prescribed period but the Minister may extend the period for conducting the review for one or more periods equal to the prescribed period if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.

Marginal note:Prohibition on registration

37 If the Minister notifies the Bank of a decision to review an application for registration, the Bank must not register the applicant unless the Minister notifies the Bank under section 38 of a decision not to issue a directive.

Marginal note:Notice to Bank

38 The Minister must notify the Bank if, after completing a review of an application, the Minister decides not to issue a directive under section 40.

Marginal note:Additional information

39 An applicant or registered payment service provider must provide the Minister and any designated person or government authority with any additional information that the Minister, person or government authority requests in relation to the applicant or registered payment service provider or the retail payment activities the applicant performs or plans to perform.

Marginal note:Directive to refuse registration

40 The Minister may, for any of the following reasons, issue a directive to the Bank to refuse to register an applicant:

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  (a) there are reasons related to national security;

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  (b) the applicant has failed to provide additional information in accordance with section 39;

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  (c) an order made under section 42 or an undertaking provided in accordance with that section that is in relation to the application in question has not been complied with;

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  (d) a condition imposed under section 43 in relation to the application in question has not been complied with; and

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  (e) the applicant has provided false or misleading information.

Marginal note:Review of directive

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  41 (1) An applicant that has been notified under section 49 may, within the prescribed period, make a request to the Minister for a review of the directive to refuse registration.

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  Marginal note:Decision

  (2) On completion of the review, the Minister must, after giving the applicant an opportunity to make representations, confirm or revoke the directive. The Minister must notify the Bank of the decision and the Bank must then, as soon as feasible, notify the applicant.

Marginal note:Undertakings

42 The Minister may, by order, require any individual or entity to provide an undertaking in relation to an application for registration or in relation to any registered payment service provider if the Minister is of the opinion that it is necessary to do so for reasons related to national security.