Disclosure of Interest (Authorized Foreign Banks) Regulations

Version of section 3 from 2009-02-12 to 2014-11-20:

  •  (1) Subject to subsection (1.1), an authorized foreign bank shall disclose to a person who requests the authorized foreign bank to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated

    • (a) where a statement of account is provided in respect of the deposit account, by means of a written statement delivered to that person, at or before the time the deposit account is opened; or

    • (b) where no statement of account is provided in respect of the deposit account, by means of

      • (i) a written statement copies of which are available and displayed in each branch of the authorized foreign bank where deposit accounts are kept, or

      • (ii) a general notice that is displayed in each of the authorized foreign bank’s branches where deposit accounts are kept, at each of the authorized foreign bank’s points of service and on the authorized foreign bank’s websites through which it offers deposit accounts in Canada.

  • (1.1) In the case of the opening of a deposit account on a telephone request as contemplated by subsection 564(3) of the Act, an authorized foreign bank must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.

  • (2) A written statement and a general notice referred to in subsection (1) or a written statement referred to in section (1.1) shall include

    • (a) the annual rate of interest;

    • (b) the frequency of payment of interest;

    • (c) the manner, if any, in which the balance in the deposit account affects the rate of interest; and

    • (d) any other circumstance that affects the rate of interest.

  • (3) A written statement referred to in subsection (1.1) that is sent to a customer by mail is deemed to be provided to the customer on the fifth day after the postmark date on the statement.

  • SOR/2001-468, s. 1
  • SOR/2009-44, s. 2
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