Retail Payment Activities Regulations (SOR/2023-229)

Marginal note:Use of information

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  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.

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  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.

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

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  (a) prevent their loss or destruction;

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  (b) prevent their falsification;

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

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  (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

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  (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

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

Marginal note:Prescribed period — payment service provider

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  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.

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  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.

Marginal note:Designation of violations

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

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  (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;

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

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

Marginal note:Classification

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  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.

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  Marginal note:Compliance agreement violation

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

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  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.

Marginal note:Penalties

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  48 (1) The range of penalties in respect of a violation, other than one referred to in subsection (2), is

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    (a) up to $1,000,000 in the case of a serious violation; and

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    (b) up to $10,000,000 in the case of a very serious violation.

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  Marginal note:Exceptions

  (2) In the case of a violation in respect of section 21 or subsection 22(1), 59(1) or 60(1) or (2) of the Act,

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    (a) if the violation has continued for no more than 30 days, the amount of the penalty in respect of the violation is $500 for each day that it has continued; and

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    (b) if it has continued for more than 30 days, the range of penalties in respect of the violation is from $15,000 to $1,000,000.

Marginal note:Criteria

49 The amount payable as the penalty for a violation, other than one referred to in paragraph 48(2)(a), is to be established having regard to

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  (a) the harm that is done by the violation and the harm that could have been done by it;

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  (b) the history of the individual or entity that committed the violation with respect to any prior violation committed by them within the five-year period immediately before the violation; and

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  (c) the degree of intention or negligence on the part of the individual or entity that committed the violation.

Marginal note:Additional penalty

50 For the purpose of paragraph 82(1)(b) of the Act, the additional penalty is equal to the amount of the penalty set out in the notice of violation.

Marginal note:Service of documents

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  51 (1) Any notice that is to be served under Part 5 of the Act must be served by

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    (a) in the case of service on an individual,

    • (i) leaving a copy of it with the individual,

    • (ii) leaving a copy of it with someone who appears to be an adult member of the same household at the individual’s last known address or usual place of residence,

    • (iii) sending a copy of it by registered mail or courier to the individual’s last known address or usual place of residence,

    • (iv) sending a copy of it to the individual’s last known email address, or

    • (v) making a copy of it available to the individual through an electronic system maintained for that purpose by the Bank and advising the individual, by email to their last known email address, of the availability of the notice; and

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    (b) in the case of service on an entity,

    • (i) leaving a copy of it with an individual who appears to manage or be in control of the head office or place of business of the entity or of the entity’s authorized representative,

    • (ii) sending a copy of it by registered mail or courier to the head office or place of business of the entity or of the entity’s authorized representative,

    • (iii) sending a copy of it to the entity’s last known email address, or

    • (iv) making a copy of it available to the entity through an electronic system maintained for that purpose by the Bank and advising the entity, by email to its last known email address, of the availability of the notice.

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  Marginal note:Deemed service

  (2) A notice is deemed to be served

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    (a) on the day on which it is left with an individual in accordance with subparagraph (1)(a)(i) or (ii) or (b)(i);

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    (b) on the 10th day after the date indicated in the receipt issued by the postal or courier service, in the case of service by registered mail or courier; or

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    (c) on the day on which the email referred to in subparagraph (1)(a)(iv) or (v) or (b)(iii) or (iv) is delivered.

Marginal note:National security review — prescribed periods

52 In respect of an application for registration that is submitted during the transition period as defined in section 103 of the Act,

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  (a) the prescribed period for the purpose of subsection 34(1) of the Act begins on the day on which the Minister is provided with the application and ends 60 days after the last day of the transition period; and

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  (b) the prescribed period for the purpose of section 36 of the Act begins on the day on which the Minister decides to review the application and ends on the later of 180 days after that day and 180 days after the last day of the transition period.

Marginal note:Application for registration — prescribed period

53 The prescribed period for the purpose of section 104 of the Act is the period that begins on the day on which section 29 of the Act comes into force and ends on the later of

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  (a) the day that is 14 days after the day on which section 29 of the Act comes into force, and

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  (b) the day that is 60 days before the first day during the transition period on which the payment service provider plans to perform retail payment activities.