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

Marginal note:Review of directive

• 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.

• 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.

Marginal note:Conditions

43 The Minister may, by order, impose conditions on any individual or entity 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.

Marginal note:Copy to Bank

44 The Minister must provide the Bank with a copy of each order the Minister makes under section 42 or 43 and the Bank must, as soon as feasible, provide a copy to the individual or entity in question.

Marginal note:Notice of intent to issue directive to revoke registration

• 45 (1) The Minister may, for any of the following reasons, issue to the Bank a notice of intent to issue a directive to the Bank to revoke a payment service provider’s registration:

  • (a) there are reasons related to national security

  • (b) the payment service provider has failed to provide additional information in accordance with section 39;

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

  • (d) a condition imposed under section 43 in relation to the payment service provider has not been complied with;

  • (e) the payment service provider has provided false or misleading information; and

  • (f) the payment service provider has not complied with an order under section 96.

• Marginal note:Notice to payment service provider

  (2) The Bank must, as soon as feasible, notify the payment service provider in writing of the issuance of the Minister’s notice of intent.

Marginal note:Review of notice of intent

• 46 (1) A registered payment service provider that has been notified under subsection 45(2) may, within the prescribed period, make a request to the Minister for a review of the notice of intent.

• Marginal note:Decision

  (2) On completion of the review, the Minister must, after giving the payment service provider an opportunity to make representations, either withdraw the notice of intent or issue a directive to the Bank to revoke the registration.

• Marginal note:Notices to Bank and payment service provider

  (3) The Minister must notify the Bank of a decision to withdraw the notice of intent and the Bank must, as soon as feasible, notify the payment service provider of the withdrawal.

Marginal note:Review not requested

47 If a registered payment service provider that has been notified under subsection 45(2) does not make a request to the Minister for a review of the notice of intent within the prescribed period, the Minister may issue a directive to the Bank to revoke the payment service provider’s registration.

Refusal to Register

Marginal note:Refusal to register

• 48 (1) The Bank may, within the prescribed period, refuse to register an applicant for a prescribed reason or for any of the following reasons:

  • (a) the applicant has failed to provide additional information in accordance with subsection 29(3);

  • (b) the applicant has provided false or misleading information;

  • (c) the applicant has been found guilty of contravening a provision referred to in section 74, 75 or 76, subsection 77(1) or section 77.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;

  • (d) during the five-year period before the day on which the application was submitted, the Director of the Centre, under subsection 73.15(4) of that Act, caused a notice of a decision or of an imposed penalty to be issued and served on the applicant in respect of a violation that was classified as a serious violation or very serious violation under that Act;

  • (e) the applicant is not registered in accordance with section 11.1 of that Act;

  • (f) the applicant has ceased to perform or no longer plans to perform retail payment activities; and

  • (g) the applicant has committed or has been deemed to have committed a violation under this Act.

• Marginal note:Unpaid penalties

  (2) If an applicant that does not have a place of business in Canada has committed a violation under this Act and is liable to pay a penalty for it, and if 30 days have elapsed after the day on which all proceedings in respect of the violation are ended and the penalty has not been paid, the Bank must refuse to register the applicant until the penalty is paid.

• Marginal note:Notice to applicant

  (3) If the Bank refuses to register an applicant under subsection (1), the Bank must, as soon as feasible, notify the applicant of the refusal in writing. The notice must include the reason for the refusal.

Marginal note:Directive to refuse to register

49 The Bank must refuse to register an applicant if the Minister issues a directive to that effect under section 40. In that case, the Bank must, as soon as feasible, notify the applicant in writing of the refusal.

Marginal note:Review by Governor

• 50 (1) An applicant that has been notified under subsection 48(3) may, within the prescribed period, make a request to the Governor for a review of the refusal to register.

• Marginal note:Decision

  (2) On completion of the review, the Governor must confirm the refusal or direct the Bank to register the applicant.

• Marginal note:Form and manner of decision

  (3) The Governor must, within the prescribed period, make a decision and must, as soon as feasible, notify the applicant in writing of the decision.

Marginal note:Notice to Centre

51 The Bank must, as soon as feasible, notify the Centre in writing of any refusal to register an applicant.

Revocation of Registration

Marginal note:Notice of intent to revoke registration

52 The Bank may, for a prescribed reason or for any of the following reasons, issue to a registered payment service provider a notice of intent to revoke the payment service provider’s registration that sets out the reason for the intention to revoke:

• (a) the payment service provider has provided false or misleading information;

• (b) the payment service provider has been found guilty of contravening a provision referred to in section 74, 75 or 76, subsection 77(1) or section 77.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;

• (c) the Director of the Centre, under subsection 73.15(4) of that Act, has caused a notice of a decision or of an imposed penalty to be issued and served on the payment service provider in respect of a violation that was classified as a serious or very serious violation under that Act;

• (d) the payment service provider is not registered in accordance with section 11.1 of that Act;

• (e) the payment service provider has ceased to perform retail payment activities;

• (f) an individual or entity that applied for registration under section 24 has acquired control of the payment service provider; and

• (g) the payment service provider has committed or has been deemed to have committed a violation under this Act.

Marginal note:Review of notice of intent

• 53 (1) A registered payment service provider that has been notified under section 52 may, within the prescribed period, make a request to the Governor for a review of the notice of intent.

• Marginal note:Decision

  (2) On completion of the review, the Governor must, after giving the payment service provider an opportunity to make representations, direct the Bank to either withdraw the notice of intent or revoke the payment service provider’s registration.

• Marginal note:Form and manner of decision

  (3) The Governor must, within the prescribed period, make a decision and must, as soon as feasible, notify the payment service provider in writing of the decision.

Marginal note:Review not requested

54 If a registered payment service provider that has been notified under section 52 does not make a request to the Governor for a review of the notice of intent within the prescribed period, the Governor may direct the Bank to revoke the payment service provider’s registration.

Marginal note:Revocation of registration for non-payment of penalty

• 55 (1) The Bank must revoke the registration of a registered payment service provider if the payment service provider does not have a place of business in Canada, has committed a violation under this Act and is liable to pay a penalty for it, and the penalty has not been paid within 30 days after the day on which all proceedings in respected of the violation are ended.

• Marginal note:Notice to payment service provider

  (2) The Bank must, as soon as feasible, notify the payment service provider in writing of the revocation under subsection (1).

Marginal note:Directed revocation of registration

• 56 (1) The Bank must revoke the registration of a registered payment service provider if the Minister directs the Bank to do so under subsection 46(2) or section 47.

• Marginal note:Notice to payment service provider

  (2) The Bank must, as soon as feasible, notify the payment service provider in writing of the revocation under subsection (1).

Marginal note:Notice to Centre

57 The Bank must, as soon as feasible, notify the Centre in writing of any revocation of a payment service provider’s registration.

Appeal to Federal Court

Marginal note:Right of appeal

• 58 (1) An applicant or payment service provider that has been notified under subsection 50(3) or 53(3) may, within the prescribed period or within any longer period that the Federal Court allows, appeal the decision to that Court.

• Marginal note:Powers of Federal Court

  (2) The Federal Court may

  • (a) dismiss the appeal;

  • (b) set aside the decision and, as applicable, order the Bank to register the applicant or to reinstate the payment service provider’s registration; or

  • (c) set aside the decision and refer the matter back to the Governor for re-determination.

• Marginal note:Conflict

  (3) If there is a conflict between an order under paragraph (2)(b) and a directive under section 40, subsection 46(2) or section 47, the directive prevails.

Provision of Information

Marginal note:Notice of change in information

• 59 (1) A registered payment service provider must notify the Bank of any change to the information referred to in any of paragraphs 29(1)(a) to (e), (k) and (m) to (o). The notice must include the updated information, be given within the prescribed period and be in the prescribed form and manner.

• Marginal note:Exception

  (2) The payment service provider is not however required to notify the Bank if the information in question was included in a notice under section 60.

Marginal note:Notice of change in prescribed information

• 60 (1) A registered payment service provider must notify the Bank of any change to prescribed information in relation to the payment service provider or the retail payment activities the payment service provider performs.

• Marginal note:Timing of notice

  (2) The notice must be given as soon as feasible after the payment service provider becomes aware of the change but before the change takes effect. However, if a different period is prescribed for the purposes of this subsection, the notice must be given within that period.

• Marginal note:Notice to Minister

  (3) The Bank must, as soon as feasible, notify the Minister and any designated person or government authority of any notice given under subsection (1).

Marginal note:False or misleading information

61 An individual or entity must not provide false or misleading information to the Bank, the Minister or a person or government authority designated under section 32.

PART 4Confidentiality of Information

Marginal note:Information obtained by Bank

• 62 (1) Subject to subsections (2) and (3), information that the Bank obtains under this Act and any information prepared from that information is confidential and the Bank must treat it accordingly.

• Marginal note:Disclosure permitted — sections 26, 27 and 93

  (2) The Bank may disclose information obtained under this Act if it is required to make the information public under section 26 or does so under section 27 or 93.

• Marginal note:Disclosure permitted — entities

  (3) Subject to subsection (4), the Bank may disclose information obtained under this Act to the Minister or to any government authority or regulatory body if it agrees to treat the information as confidential.

• Marginal note:Consent required

  (4) The Bank must not disclose information obtained from the Centre without the Centre’s consent.

Marginal note:Information obtained by Minister

• 63 (1) Subject to subsection (2), information that is obtained under this Act by the Minister or by a person or government authority designated under section 32 as well as any information prepared from that information is confidential and the Minister or the designated person or government authority must treat it accordingly.

• Marginal note:Disclosure permitted — entities

  (2) The Minister or the designated person or government authority may disclose information obtained under this Act to any government authority or regulatory body that agrees to treat the information as confidential.

Marginal note:Evidentiary privilege

• 64 (1) Prescribed information in relation to the supervision of payment service providers must not be used as evidence in any civil proceedings and is privileged for that purpose.

• Marginal note:No testimony or production

  (2) An individual or entity must not by an order of any court, tribunal or other body be required in any civil proceedings to give oral testimony or to produce any document relating to any information referred to in subsection (1).

• Marginal note:Exception to subsection (1)

  (3) Despite subsection (1), the Minister, the Governor, the Bank or the Attorney General of Canada may, in accordance with the regulations, use information referred to in that subsection as evidence in any proceedings.

• Marginal note:Exception to subsection (1)

  (4) Despite subsection (1), a payment service provider may, in accordance with the regulations, use information referred to in that subsection as evidence in any proceedings in relation to the administration or enforcement of this Act, the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act that are commenced by the payment service provider, the Minister, the Governor, the Bank or the Attorney General of Canada.

• Marginal note:Exceptions to subsections (1) and (2)

  (5) Despite subsections (1) and (2), a court, tribunal or other body may, by order, require the Minister, the Governor, the Bank or a payment service provider to give oral testimony or to produce any document relating to any information referred to in subsection (1) in any civil proceedings in relation to the administration or enforcement of this Act that are commenced by the Minister, the Governor, the Bank, the Attorney General of Canada or a payment service provider.

• Marginal note:No waiver

  (6) The disclosure of any information referred to in subsection (1), other than under subsection (3), (4) or (5), does not constitute a waiver of the privilege referred to in subsection (1).