Consumer-Driven Banking Act (S.C. 2026, c. 3, s. 224)

Marginal note:Regulations

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  155 (1) The Governor in Council may make regulations

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    (a) designating as a violation the contravention of a specified provision of this Act or of the regulations or the non-compliance with orders made, undertakings required, compliance agreements entered into or directions made under this Act;

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    (b) establishing, having regard to subsection (2), a penalty or a range of penalties in respect of a violation;

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    (c) respecting the service of documents under sections 156 to 168, including the manner and proof of service and the circumstances under which documents are considered to be served;

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    (d) providing for the circumstances in which the Bank must not make public, under subsection 168(1), the name of the individual or entity that committed the violation; and

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    (e) generally, for carrying out the purposes and provisions of this section and sections 156 to 168.

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  Marginal note:Maximum penalties

  (2) The maximum penalty for a violation is $1,000,000 if the violation is committed by an individual and $10,000,000 if the violation is committed by a participating entity or accredited third-party service provider.

Marginal note:Criteria for penalty

156 Except if a penalty is fixed under paragraph 155(1)(b), the amount of a penalty must, in each case, be determined taking into account

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  (a) the degree of intention or negligence on the part of the individual or entity that committed the violation;

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  (b) the harm done by the violation;

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  (c) the duration of the violation;

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  (d) the ability of the individual or entity that committed the violation to pay the penalty;

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  (e) the history of the individual or entity that committed the violation with respect to any prior violation or conviction under this Act within the five-year period immediately before the violation; and

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  (f) any other criteria that may be provided for in the regulations.

Marginal note:Purpose of penalty

157 The purpose of a penalty is to promote compliance with this Act and not to punish.

Marginal note:Violation or offence

158 If a contravention or non-compliance that is designated under paragraph 155(1)(a) can be proceeded with either as a violation or as an offence, proceeding in one manner precludes proceeding in the other.

Marginal note:Commission of violation

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  159 (1) Every contravention or non-compliance that is designated under paragraph 155(1)(a) constitutes a violation and the individual or entity that commits the violation is liable to a penalty determined in accordance with sections 155 and 156.

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  Marginal note:Notice of violation

  (2) If the Bank believes on reasonable grounds that an individual or entity has committed a violation, the Bank may issue a notice of violation and, in that case, must cause it to be served on the individual or entity.

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  Marginal note:Contents of notice

  (3) A notice of violation must name the individual or entity believed to have committed a violation, identify the violation and set out

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    (a) the penalty that the Bank proposes to impose;

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    (b) the right of the individual or entity, within 30 days after the day on which the notice is served or within any longer period that the Bank specifies, to pay the penalty or to make representations to the Governor with respect to the violation and the proposed penalty, and the manner for doing so; and

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    (c) the fact that, if the individual or entity does not pay the penalty or make representations in accordance with the notice, the individual or entity will be deemed to have committed the violation and the Bank may impose a penalty in respect of it.

Marginal note:Payment

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  160 (1) If the individual or entity pays the penalty proposed in the notice of violation, the individual or entity is deemed to have committed the violation and proceedings in respect of it are ended.

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  Marginal note:Representations to Governor

  (2) If the individual or entity makes representations in accordance with the notice, the Governor must decide, on a balance of probabilities, whether the individual or entity committed the violation and, if so, may, subject to any regulations made under paragraph 155(1)(b), impose the penalty proposed in the notice, a lesser penalty or no penalty.

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  Marginal note:Failure to pay or make representations

  (3) An individual or entity that neither pays the penalty nor makes representations in accordance with the notice is deemed to have committed the violation and the Bank may, subject to any regulations made under paragraph 155(1)(b), impose the penalty proposed in the notice, a lesser penalty or no penalty.

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  Marginal note:Notice — decision and right of appeal

  (4) The Bank must cause notice of any decision made under subsection (2) or (3) to be issued and served on the individual or entity together with notice of the right of appeal under section 161.

Marginal note:Right of appeal

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  161 (1) An individual or entity on which a notice under subsection 160(4) is served may, within 30 days after the day on which the notice is served or within any longer period that the Court allows, appeal the decision to the Federal Court.

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  Marginal note:Court to take precautions against disclosing

  (2) In an appeal, the Federal Court must take every reasonable precaution, including, if appropriate, conducting hearings in private, to avoid the disclosure by the Court or any person of confidential information referred to in section 131.

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  Marginal note:Powers of Court

  (3) On an appeal, the Federal Court may confirm, set aside or, subject to any regulations made under paragraph 155(1)(b), vary the decision.

Marginal note:Debts to His Majesty

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  162 (1) A penalty constitutes a debt due to His Majesty in right of Canada that may be recovered in the Federal Court.

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  Marginal note:Limitation period or prescription

  (2) No proceedings to recover a debt referred to in subsection (1) may be commenced later than five years after the day on which the debt becomes payable.

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  Marginal note:Receiver General

  (3) A debt referred to in subsection (1) is payable to and must be remitted to the Receiver General.

Marginal note:Certificate of default

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  163 (1) The unpaid amount of any debt referred to in subsection 162(1) may be certified by the Governor.

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  Marginal note:Registration in Federal Court

  (2) Registration in the Federal Court of a certificate has the same effect as a judgment of that Court for a debt of the amount specified in the certificate and all related registration costs.

Marginal note:Violations not offences

164 For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

Marginal note:Due diligence available

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  165 (1) Due diligence is a defence in a proceeding in relation to a violation.

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  Marginal note:Common law principles

  (2) Every rule and principle of the common law that makes any circumstance a justification or excuse in relation to a charge for an offence applies in respect of a violation to the extent that it is not inconsistent with this Act.

Marginal note:Admissibility

166 In a proceeding in respect of a violation or a prosecution for an offence, a notice purporting to be issued under subsection 159(2) or 160(4) or a certificate purporting to be made under subsection 163(1) is admissible in evidence without proof of the signature or official character of the person appearing to have signed it.

Marginal note:Limitation period or prescription

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  167 (1) No proceedings in respect of a violation may be commenced later than two years after the day on which the subject matter of the proceedings became known to the Bank.

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  Marginal note:Certificate

  (2) A document appearing to have been issued by the Bank, certifying the day on which the subject matter of any proceedings became known to the Bank, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and is, in the absence of evidence to the contrary, proof of the matter asserted in it.

Marginal note:Publication

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  168 (1) Subject to any regulations, the Bank must make public the nature of a violation, the name of the individual or entity that committed it and the amount of the penalty imposed.

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  Marginal note:Publication — reasons

  (2) In making public the nature of a violation, the Bank may include the reasons for the decision, including the relevant facts, analysis and considerations that formed part of the decision.

Marginal note:Screen scraping

171 Subject to the regulations, an individual or entity must not, for the purposes of providing a consumer in Canada with a product or service, use an interface or application to gain direct access to the consumer’s data using the consumer’s authentication information.