Retail Payment Activities Regulations (SOR/2023-229)

Marginal note:Request for review of directive — prescribed period

28 The prescribed period for the purpose of subsection 41(1) of the Act is 30 days beginning on the day after the day on which the applicant is notified of the refusal to register.

Prescribed Supervisory Information

Marginal note:Prescribed information

37 The following is prescribed information for the purpose of subsection 64(1) of the Act:

• (a) any direction, notice, letter, plan, report or recommendation issued or prepared by the Bank in connection with its supervision of a payment service provider, including as a result of any assessment, testing, audit or investigation that it carries out in respect of the payment service provider;

• The following provision is not in force.

  (b) a notice of refusal given under subsection 48(3) of the Act;

• The following provision is not in force.

  (c) a notice of intent to revoke issued under section 52 of the Act;

• The following provision is not in force.

  (d) a notice of decision given under subsection 53(3) of the Act;

• The following provision is not in force.

  (e) a notice of revocation given under subsection 55(2) of the Act;

• (f) a compliance agreement referred to in section 71 of the Act;

• (g) a notice of violation issued under subsection 76(2) of the Act;

• (h) a compliance agreement referred to in paragraph 76(2)(b) of the Act;

• (i) a notice of decision issued under subsection 78(4) of the Act;

• (j) a notice of compliance served under section 81 of the Act;

• (k) a notice of default issued under section 82 of the Act;

• (l) an order made under subsection 94(1) or (4) of the Act; and

• (m) any correspondence to or from the applicant or payment service provider that relates to any of the items referred to in paragraphs (a) to (l).

Marginal note:Non-disclosure by payment service provider

• 38 (1) Subject to subsections (2) and (3), a payment service provider must not, directly or indirectly, disclose any information referred to in section 37.

• Marginal note:Exception

  (2) A payment service provider may disclose information referred to in section 37 to the following individuals and entities if it ensures that, subject to subsection (3), those individuals and entities do not further disclose the information to others:

  • (a) an individual or entity with which the payment service provider is affiliated within the meaning of section 3 of the Act; and

  • (b) the directors, officers, employees, auditors, securities underwriters or legal advisors of

    • (i) the payment service provider, or

    • (ii) an individual or entity referred to in paragraph (a).

• Marginal note:Exception — securities laws

  (3) A payment service provider may disclose information referred to in section 37, and need not ensure its further non-disclosure, to the extent that the disclosure is required by the securities laws of any jurisdiction.

Marginal note:Use of information

• 39 (1) For the purpose of subsection 64(3) of the Act, the Minister, the Governor, the Bank and the Attorney General of Canada may use the information referred to in section 37 of these Regulations as evidence in any proceeding.

• Marginal note:Certain Acts

  (2) For the purpose of subsection 64(4) of the Act, the payment service provider may use the information referred to in section 37 of these Regulations as evidence in any proceeding referred to in that subsection.

Record Keeping and Retention

Marginal note:Records

40 A payment service provider must keep, in a form that is intelligible to the Bank, sufficient records to demonstrate its compliance with the Act and these Regulations and, subject to any undertaking provided for the purpose of section 42 of the Act or any condition imposed under section 43 of the Act, must retain the records until the day that is five years after the day on which the payment service provider’s current compliance with the Act and Regulations ceases to be demonstrated by the records.

Marginal note:Protective measures

41 A payment service provider must take reasonable measures, with respect to all records that it is required to keep under the Act and these Regulations, to

• (a) prevent their loss or destruction;

• (b) prevent their falsification;

• (c) detect and correct any inaccuracies contained in them; and

• (d) prevent unauthorized persons from accessing or using the information contained in them.

Marginal note:Agents, mandataries and third-party service providers

42 A payment service provider must ensure that

• (a) any record that is kept by an agent or mandatary or a third-party service provider that is relevant to the payment service provider’s compliance with the Act or these Regulations is

  • (i) accessible to the payment service provider, and

  • (ii) kept and retained in accordance with section 40; and

• (b) the measures referred to in section 41 are taken in respect of that record.

Administration and Enforcement — Provision of Information

Marginal note:Prescribed period — payment service provider

• 43 (1) The prescribed period for the purpose of subsection 65(1) of the Act is 15 days beginning on the day after the day on which the request is made.

• Marginal note:Exception — significant adverse incident

  (2) Despite subsection (1), if the information requested by the Bank relates to an incident that is ongoing and that could have a significant adverse impact on an individual or entity referred to in subsection 94(2) of the Act, the prescribed period for the purpose of subsection 65(1) of the Act is 24 hours beginning when the request is made.

Marginal note:Prescribed period — individual or entity

44 The prescribed period for the purpose of subsection 66(2) of the Act is 15 days beginning on the day after the day on which the request is made.

Marginal note:Prescribed period — undertaking or condition

45 The prescribed period for the purpose of subsection 73(1) of the Act is 15 days beginning on the day after the day on which the request is made.

Administrative Monetary Penalties

Marginal note:Designation of violations

46 The following are designated as violations that may be proceeded with under Part 5 of the Act:

• (a) the contravention of a provision of the Act set out in column 1 of Part 1 of the schedule, including in relation to a corresponding provision of these Regulations set out in column 2, if applicable;

• (b) the contravention of a provision of these Regulations set out in column 1 of Part 2 of the schedule; and

• (c) non-compliance with an agreement entered into under section 71 of the Act.

Marginal note:Classification

• 47 (1) Subject to subsection (3), each violation referred to in paragraph 46(a) or (b), other than one referred to in subsection 48(2), is classified as a serious or very serious violation, as set out in column 3 of Part 1 of the schedule or column 2 of Part 2 of the schedule, as the case may be.

• Marginal note:Compliance agreement violation

  (2) The violation referred to in paragraph 46(c) is classified as a very serious violation.

• Marginal note:Series of violations

  (3) If a notice of violation identifies two or more violations that are classified as serious violations and that arise from the contravention of the same provision of the Act or these Regulations, that series of violations is classified as a single very serious violation.