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Version of document from 2006-03-22 to 2009-02-11:

Disclosure of Charges (Authorized Foreign Banks) Regulations

SOR/99-278

BANK ACT

Registration 1999-06-23

Disclosure of Charges (Authorized Foreign Banks) Regulations

P.C. 1999-1164 1999-06-23

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 562Footnote a, 564 to 566a and 668Footnote b of the Bank ActFootnote c, hereby makes the annexed Disclosure of Charges (Authorized Foreign Banks) Regulations.

Interpretation

 The definition in this section applies in these Regulations.

controlled access automated teller machine

controlled access automated teller machine means an automated teller machine located in a branch of an authorized foreign bank or in an enclosed area adjacent to a branch of an authorized foreign bank, access to which is controlled by a system that permits entry to automated teller machine users. (guichet automatique à accès contrôlé)

Application

 These Regulations apply to an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act.

Personal Deposit Accounts

 An authorized foreign bank shall disclose to its customers and to the public all charges applicable to personal deposit accounts with the authorized foreign bank by means of a written statement copies of which are displayed and available to customers and to the public at all branches of the authorized foreign bank.

 Where an authorized foreign bank increases a charge applicable to personal deposit accounts with the authorized foreign bank or introduces a new charge applicable to personal deposit accounts with the authorized foreign bank, the authorized foreign bank shall disclose the increase or new charge, as the case may be, to each customer in whose name such an account is kept

  • (a) with respect to a customer to whom a statement of account is provided,

    • (i) by means of a notice in writing provided to the customer at least 30 days before the effective date of the increase or new charge, or

    • (ii) where the customer has instructed the authorized foreign bank in writing to provide such a notice to another person, by means of a notice provided to that other person at least 30 days before the effective date of the increase or new charge; and

  • (b) with respect to a customer to whom a statement of account is not provided

    • (i) by means of a notice that is displayed, for a period of at least 60 days immediately before the effective date of the increase or new charge, at all branches of the authorized foreign bank and at all controlled access automated teller machines on which the name of the authorized foreign bank or information identifying the machine with the authorized foreign bank is displayed, and

    • (ii) by means of a notice, electronic or otherwise, advising customers of the increase or new charge and the manner in which further details can be obtained, which notice shall be provided, for a period of at least 60 days immediately before the effective date of the increase or new charge, at all automated teller machines, other than controlled access automated teller machines, on which the name of the authorized foreign bank or information identifying the machine with the authorized foreign bank is displayed.

Deposit Accounts other than Personal Deposit Accounts

  •  (1) An authorized foreign bank shall disclose to its customers and to the public all charges applicable to any of the following services provided by the authorized foreign bank in respect of deposit accounts with the authorized foreign bank, other than personal deposit accounts, by means of a written statement copies of which are displayed and available to customers and to the public at each branch of the authorized foreign bank at which such accounts are kept, namely,

    • (a) acceptance of deposits;

    • (b) acceptance of coins, cheques or Bank of Canada notes for deposit;

    • (c) issuance of cheques;

    • (d) certification of cheques;

    • (e) handling of a cheque presented by a customer that is subsequently returned because there are not sufficient funds;

    • (f) holding of cheques for deposit;

    • (g) handling of cheques drawn in the currency of the United States;

    • (h) processing of a stop payment on a cheque;

    • (i) handling of a cheque issued by a customer that is subsequently returned because there are not sufficient funds;

    • (j) supply of coins and Bank of Canada notes;

    • (k) handling of overdrafts;

    • (l) transfers between accounts;

    • (m) supply of account statements;

    • (n) handling of account confirmations;

    • (o) conducting searches related to an account;

    • (p) provision of information in regard to an account balance;

    • (q) closing of an account; and

    • (r) handling of unclaimed balances in inactive accounts.

  • (2) The written statement referred to in subsection (1) shall

    • (a) indicate that the statement sets out all charges for services provided by the authorized foreign bank in respect of deposit accounts with the authorized foreign bank other than personal deposit accounts; or

    • (b) indicate that the statement does not set out all of the charges referred to in paragraph (a) and set out the manner in which information regarding charges not included in the statement can be obtained.

 Where an authorized foreign bank increases a charge applicable to a service referred to in subsection 5(1), the authorized foreign bank shall disclose the increase

  • (a) with respect to customers to whom a statement of account is provided,

    • (i) by means of a notice in writing provided to the customer at least 30 days before the effective date of the increase, or

    • (ii) where the customer has instructed the authorized foreign bank in writing to provide such a notice to another person, by means of a notice in writing provided to that other person at least 30 days before the effective date of the increase; and

  • (b) with respect to customers to whom a statement of account is not provided, by means of a notice that is displayed for a period of at least 60 days immediately before the effective date of the increase at all branches of the authorized foreign bank.

 Section 6 does not apply in respect of a customer who has agreed in writing that the authorized foreign bank will charge an amount other than an amount required to be disclosed pursuant to subsection 5(1).

List of Charges

  •  (1) An authorized foreign bank shall maintain, at each branch, a list of the charges applicable to deposit accounts with the authorized foreign bank and the usual amount charged by it for services normally provided to its customers and to the public.

  • (2) An authorized foreign bank shall, on request, make the list referred to in subsection (1) available to customers of the authorized foreign bank and to the public for inspection during business hours at each branch.

Coming into Force

 These Regulations come into force on June 28, 1999.


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