Bank Act (S.C. 1991, c. 46)

Marginal note:Publication of name

531 An authorized foreign bank shall set out its name and, where applicable, any other permitted name, as set out in the order made under subsection 524(1) or 528(1.1), in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the authorized foreign bank.

Marginal note:Directing change of name

• 532 (1) If through inadvertence or otherwise an order made under subsection 524(1) or 528(1.1) provides for the use of a name that is prohibited by section 530, the Superintendent may, by order, direct the authorized foreign bank to change the name without delay and the authorized foreign bank shall comply with that direction.

• Marginal note:Revoking name

  (2) Where an authorized foreign bank does not comply with a direction under subsection (1) within sixty days after the service of the direction, the Superintendent may revoke the name and assign another name and, until changed in accordance with section 528, that other name is the name of the authorized foreign bank.

532.1 to 532.4 [Repealed, 1999, c. 28, s. 35]

Marginal note:Other name

• 533 (1) Subject to section 531 and subsection (2), an authorized foreign bank may carry on business in Canada under a name other than the name set out in the order made under subsection 524(1) or 528(1.1).

• Marginal note:Directions

  (2) Where an authorized foreign bank carries on business in Canada under a name other than the name set out in the order, the Superintendent may, by order, direct the authorized foreign bank not to use that other name if the Superintendent is of the opinion that the other name is a name referred to in any of paragraphs 530(1)(a) to (e).

Commencement and Carrying on of Business in Canada

Marginal note:Order approving commencement and carrying on of business in Canada

• 534 (1) On application by an authorized foreign bank, the Superintendent may make an order approving the commencement and carrying on of business in Canada by the authorized foreign bank.

• Marginal note:Prohibition

  (2) An authorized foreign bank may not commence to carry on business in Canada until it is authorized to do so by an order made under subsection (1).

• Marginal note:Conditions for order

  (3) The Superintendent may make the order only if the Superintendent is satisfied that the authorized foreign bank has

  • (a) deposited in Canada unencumbered assets of a type approved by the Superintendent, the total value of which, determined in accordance with the accounting principles referred to in subsection 308(4), shall be

    • (i) in the case of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2), one hundred thousand dollars, or

    • (ii) in any other case, five million dollars or any greater amount that the Superintendent specifies;

  • (b) submitted a power of attorney in accordance with subsection 536(2); and

  • (c) complied with all other relevant requirements of this Act.

• Marginal note:Deposit agreement

  (4) The assets referred to in paragraph (3)(a) shall be kept with a Canadian financial institution approved by the Superintendent pursuant to a deposit agreement entered into with the prior approval of the Superintendent.

• Marginal note:Conditions of order

  (5) The order under subsection (1) may contain any conditions or limitations that the Superintendent considers appropriate that are consistent with this Act and that relate to the carrying on of the business in Canada of the authorized foreign bank.

• Marginal note:Variations

  (6) In respect of an order made under subsection (1), the Superintendent may at any time, by further order,

  • (a) make the order subject to any conditions or limitations that the Superintendent considers appropriate that are consistent with this Act and that relate to the business in Canada of the authorized foreign bank, or

  • (b) amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject,

  but before making a further order the Superintendent shall provide the authorized foreign bank with an opportunity to make representations regarding that further order.

• Marginal note:Public notice

  (7) On the making of an order under subsection (1), the authorized foreign bank shall publish a notice of the making of the order in a newspaper in general circulation at or near the place where its principal office is to be situated.

• Marginal note:Notice in Canada Gazette

  (8) The Superintendent shall cause to be published in the Canada Gazette a notice of the making of an order under subsection (1).

• Marginal note:Time limit

  (9) The Superintendent shall not make an order under subsection (1) in respect of an authorized foreign bank more than one year after the day on which the order under subsection 524(1) in respect of the authorized foreign bank becomes effective.

• Marginal note:Cessation of existence

  (10) If an order under subsection (1) is not obtained within one year after the day on which the order under subsection 524(1) in respect of the authorized foreign bank becomes effective, the order made under subsection 524(1) is revoked.

Principal Office and Principal Officer

Marginal note:Principal office

• 535 (1) An authorized foreign bank shall at all times have a principal office in the province specified in the order made under subsection 524(1) or 528(1.1) with respect to it.

• Marginal note:Change of principal office

  (2) An authorized foreign bank may change the address of its principal office within the province specified in the order made under subsection 524(1) or 528(1.1) with respect to it.

• Marginal note:Notice of change of address

  (3) An authorized foreign bank shall send to the Superintendent, within fifteen days after any change of address of its principal office, a notice of the change of address.

Marginal note:Principal officer

• 536 (1) An authorized foreign bank shall appoint an employee who is ordinarily resident in Canada to be its principal officer for the purposes of this Part.

• Marginal note:Power of attorney

  (2) The authorized foreign bank shall provide the principal officer with a power of attorney expressly authorizing the principal officer to receive all notices under the laws of Canada from the Minister or Superintendent and shall without delay submit a copy of the power of attorney to the Superintendent.

• Marginal note:Vacancy

  (3) Where a vacancy occurs in the position of principal officer, the authorized foreign bank shall, without delay, fill the vacancy and submit a copy of the new power of attorney to the Superintendent.

Transfer of Liabilities

Marginal note:Transfer of liabilities not permitted

• 537 (1) Subject to subsection (2), an authorized foreign bank shall not transfer all or substantially all of the liabilities in respect of its business in Canada.

• Marginal note:Exception

  (2) An authorized foreign bank may, with the approval of the Minister, transfer all or substantially all of the liabilities in respect of its business in Canada to another authorized foreign bank in respect of its business in Canada, to a bank or to a body corporate to which the Trust and Loan Companies Act applies.

• Marginal note:Application for approval

  (3) An approval may be given under subsection (2) only if

  • (a) notice of the authorized foreign bank’s intention to apply for the approval has been published at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the principal office of the transferring authorized foreign bank is situated; and

  • (b) the application for approval is supported by evidence satisfactory to the Minister that the requirement of paragraph (a) has been satisfied and that the entity to which the authorized foreign bank intends to make the transfer is an entity referred to in subsection (2).

537.1 [Repealed, 1999, c. 28, s. 35]

Business and Powers

Marginal note:Main business

• 538 (1) Subject to this Act, an authorized foreign bank shall not carry on any business in Canada other than the business of banking and any business generally that appertains to the business of banking.

• Marginal note:Included activities

  (2) For greater certainty, the business of banking includes

  • (a) providing any financial service;

  • (b) acting as a financial agent;

  • (c) providing investment counselling services and portfolio management services; and

  • (d) issuing payment, credit or charge cards and, in cooperation with others including other financial institutions, operating a payment, credit or charge card plan.

Marginal note:Additional activities

• 539 (1) In addition, an authorized foreign bank may, in Canada,

  • (a) hold, manage and otherwise deal with real property;

  • (b) provide prescribed bank-related data processing services;

  • (b.1) with the prior written approval of the Minister, engage in any of the following activities, namely,

    • (i) collecting, manipulating and transmitting

      • (A) information that is primarily financial or economic in nature,

      • (B) information that relates to the business of an entity in which a bank is permitted to acquire a substantial investment under section 468 or to the business of a Canadian entity acquired or held under section 522.08, and

      • (C) any other information that the Minister may, by order, specify,

    • (ii) providing advisory or other services in the design, development or implementation of information management systems,

    • (iii) designing, developing or marketing computer software, and

    • (iv) designing, developing, manufacturing or selling, as an ancillary activity to any activity referred to in any of subparagraphs (i) to (iii) that the authorized foreign bank is engaging in, computer equipment integral to the provision of information services related to the business of financial institutions or to the provision of financial services;

  • (b.2) with the prior written approval of the Minister, develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used

    • (i) to provide information that is primarily financial or economic in nature,

    • (ii) to provide information that relates to the business of an entity in which a bank is permitted to acquire a substantial investment under section 468 or to the business of a Canadian entity acquired or held under section 522.08, or

    • (iii) for a prescribed purpose or in prescribed circumstances;

  • (b.3) engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services;

  • (c) promote merchandise and services to the holders of any payment, credit or charge card issued by the authorized foreign bank;

  • (d) engage in the sale of

    • (i) tickets, including lottery tickets, on a non-profit public service basis in connection with special, temporary and infrequent non-commercial celebrations or projects that are of local, municipal, provincial or national interest,

    • (ii) urban transit tickets, and

    • (iii) tickets in respect of a lottery sponsored by the federal government or a provincial or municipal government or an agency of any of those governments;

  • (e) act as a custodian of property;

  • (f) act as receiver, liquidator or sequestrator; and

  • (g) provide identification, authentication or verification services.

• Marginal note:Restriction

  (2) Except as authorized by or under this Act, an authorized foreign bank shall not deal in Canada in goods, wares or merchandise or engage in any trade or other business.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations

  • (a) respecting what an authorized foreign bank may or may not do with respect to the carrying on of the activities referred to in paragraphs (1)(b.1) to (b.3);

  • (b) imposing terms and conditions in respect of

    • (i) the provision of financial services referred to in paragraph 538(2)(a) that are financial planning services,

    • (ii) the provision of services referred to in paragraph 538(2)(c), and

    • (iii) the carrying on of the activities referred to in any of paragraphs (1)(b.1) to (b.3); and

  • (c) respecting the circumstances in which authorized foreign banks may be exempted from the requirement to obtain the approval of the Minister before carrying on a particular activity referred to in paragraph (1)(b.1) or (b.2).

Marginal note:Regulations apply

539.1 Regulations made for the purpose of any of sections 409 to 411 apply in respect of authorized foreign banks with any modifications that the circumstances require unless regulations made under subsection 539(3) provide otherwise.

Marginal note:Restrictions

• 540 (1) Where subsection 524(2) applies, the authorized foreign bank shall not, in respect of its business in Canada,

  • (a) except as permitted by subsection (4), engage in the business of accepting deposit liabilities, or otherwise borrow money;

  • (b) subject to the regulations, act as an agent for any person in the taking of deposit liabilities; or

  • (c) guarantee any securities or accept any bills of exchange or depository bills that are

    • (i) issued by any person, and

    • (ii) intended by the issuer or any party to be sold or traded.

• (2) [Repealed, 2018, c. 27, s. 323]

• (3) [Repealed, 2018, c. 27, s. 323]

• Marginal note:Authorized borrowing

  (4) For the purposes of paragraph (1)(a), an authorized foreign bank may

  • (a) accept deposit liabilities or otherwise borrow money from

    • (i) a financial institution other than a foreign bank, or

    • (ii) a foreign bank described in any of subparagraphs 508(1)(a)(i) to (iii),

    by means of financial instruments that cannot be subsequently sold or traded; or

  • (b) accept deposit liabilities or otherwise borrow money, from prescribed classes of entities referred to in subparagraph (a)(i) or (ii), by means of financial instruments that can be sold to or traded with those classes of entities, in accordance with regulations made pursuant to subsection (6).

• Marginal note:Non-application of paragraph (1)(c)

  (5) Paragraph (1)(c) does not apply in respect of

  • (a) securities or bills of exchange that are sold to or traded with any entity referred to in subparagraph (4)(a)(i) or (ii) and that cannot be subsequently sold or traded; or

  • (b) securities or bills of exchange that can be sold to or traded with prescribed classes of entities referred to in subparagraph (4)(a)(i) or (ii), in accordance with regulations made pursuant to subsection (6).

• Marginal note:Regulations

  (6) The Governor in Council may make regulations

  • (a) prescribing the class, type or amount of deposit liabilities or borrowings referred to in paragraph (4)(b);

  • (b) prescribing the class, type or amount of securities or bills of exchange referred to in paragraph (5)(b);

  • (c) prescribing the classes of entities referred to in paragraph (4)(b) or (5)(b);

  • (d) prescribing the terms and conditions respecting any sale or trade of financial instruments, securities or bills of exchange;

  • (d.1) respecting circumstances in which and the conditions under which an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) may act as agent for any person in the taking of deposit liabilities; and

  • (e) respecting such other matters or things as are necessary to carry out the purposes of this section.