GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Retail Payment Activities Act — R-7.36 20
Accounts 20 (1) If a payment service provider performs a retail payment activity that is the holding of end-user funds until they are withdrawn by the end user or transferred to another individual or entity, the payment service provider must (a) hold the end-user funds in trust in a trust account that is not used for any other purpose; (b) hold the end-user funds in a prescribed account or in a prescribed manner and take any prescribed measures in relation to the funds, the account or the manner; or (c) hold the end-user funds in an account that is not used for any other purpose and hold insurance or a guarantee in respect of the funds that is in an amount equal to or greater than the amount held in the account. Exception — provincial insurance or guarantee (2) Subsection (1) does not apply to a payment service provider in respect of end-user funds it holds in a province if the payment service provider accepts deposits that are insured or guaranteed under an Act of that province and those end-user funds are deposits that are guaranteed or insured under that Act. No set-off or compensation (3) No right of set-off or compensation may be asserted by an individual or entity that maintains an account that is referred to in paragraph (1)(a), (b) or (c) in respect of the funds held in that account.
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Annual report 21 A payment service provider that performs retail payment activities must, at the prescribed time and in the prescribed form and manner, submit an annual report to the Bank that includes (a) the prescribed information respecting the payment service provider’s risk management and incident response framework; (b) the prescribed information in relation to any account referred to in subsection 20 (1) and the insurance or guarantee referred to in paragraph 20 (1)(c); (c) any other prescribed information in relation to the holding of end-user funds for the purposes of subsection 20 (1) and any regulations made for the purposes of that subsection; and (d) any other prescribed information.
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Notice — significant change or new activity 22 (1) A payment service provider must notify the Bank before the payment service provider makes a significant change in the way it performs a retail payment activity or before it performs a new retail payment activity. The notice must (a) be given within the prescribed period; (b) be in the prescribed form and manner; and (c) include the prescribed information. Significant change (2) For the purposes of subsection (1), a change is significant if it could reasonably be expected to have a material impact on operational risks or the manner in which end-user funds are safeguarded.
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Registration required 23 A payment service provider must be registered with the Bank before it performs any retail payment activities.
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New application — acquisition of control 24 (1) If an individual or entity plans to acquire control of a registered payment service provider, the registered payment service provider must, before the acquisition, submit a new application for registration that takes the planned acquisition into account and be so registered. New application — other change (2) If a registered payment service provider plans to make a prescribed change, the registered payment service provider must, before the change takes effect, submit a new application for registration that takes the planned change into account and be so registered. Non-application (3) Subsection (1) does not apply in the case of a planned acquisition that would, on the day on which it is planned to take effect, result in this Act no longer applying to the registered payment service provider by virtue of section 9 or 10 .
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Duty to register 25 (1) Subject to sections 35 , 37 , 48 and 49 , the Bank must register any individual or entity that applies for registration. Notice of registration (2) The Bank must, as soon as feasible, notify the applicant in writing that the applicant has been registered.
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Registry 26 The Bank must maintain a registry of registered payment service providers and must make public the name of each registered payment service provider, its address and any prescribed information in relation to the payment service provider, the activities it performs or its registration.
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List of refusals and revocations 27 (1) The Bank must maintain and publish a list of the individuals or entities that the Bank has refused to register and the payment service providers that have had their registrations revoked. The list must set out the reasons for a refusal or revocation. Reviews (2) The Bank must not add an individual, entity or payment service provider to the list unless the prescribed period for requesting the applicable review under section 41 , 46 , 50 or 53 has expired or the refusal or revocation has been confirmed under the section in question.
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Execution of documents 28 Any document required or permitted to be executed or signed by more than one individual for the purposes of this Act may be executed or signed in several documents of similar form, each of which is executed or signed by one or more of the individuals. The documents, when executed or signed by all individuals required or permitted, as the case may be, to do so, are deemed to constitute one document for the purposes of this Act.
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Form, manner and information 29 (1) An applicant for registration must submit an application in the prescribed form and manner that includes (a) the applicant’s name and any name under which the applicant performs or plans to perform payment functions as a service or business activity; (b) the applicant’s address and any prescribed contact information; (c) a declaration that states whether the applicant operates or plans to operate out of a dwelling-house; (d) a description of how the applicant is organized or structured and, as applicable, any prescribed information in relation to the applicant’s incorporation, affiliated entities, directors and managers or owners; (e) a list of the applicant’s agents and mandataries that perform retail payment activities in the scope of their authority as an agent or mandatary and any prescribed information in relation to those agents and mandataries; (f) a description of the retail payment activities the applicant performs or plans to perform, including any prescribed information in relation to the volume and value or estimated volume and value of those retail payment activities; (g) the number of end users or estimated number of end users for whom the applicant performs or plans to perform retail payment activities; (h) any prescribed information in relation to end-user funds that the applicant holds or plans to hold; (i) a description of the applicant’s risk management and incident response framework or the framework that the applicant plans to establish and implement; (j) any prescribed information in relation to the manner in which the applicant safeguards or plans to safeguard end-user funds; (k) any prescribed information in relation to any of the applicant’s third-party service providers that have or will have a material impact on the applicant’s operational risks or the manner in which the applicant safeguards or plans to safeguard end-user funds; (l) a declaration that states whether the applicant is registered with the Centre; (m) a declaration that states whether the applicant has a place of business in Canada; (n) a declaration that states whether the applicant has applied for registration or is registered under a provincial Act respecting retail payment activities; (o) in the case of an applicant that does not have a place of business in Canada, the name and address of an agent or mandatary in Canada that is authorized, on behalf of the applicant, to accept notices given or served under this Act as well as orders made under this Act; and (p) any information in relation to the applicant or the retail payment activities the applicant performs or plans to perform that is prescribed for the purposes of sections 34 to 45 . Registration fee (2) The applicant must include the prescribed registration fee with the application. Additional information (3) The applicant must provide the Bank with any additional information that the Bank requests in relation to the information referred to in subsection (1) within 30 days after the day on which the request is made.
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Notice of change in information 30 An applicant that becomes aware that information provided as part of the application has changed or is about to change must notify the Bank of the change or anticipated change as soon as possible after becoming aware of it and the Bank must then, as soon as possible, notify the Minister and any person or government authority designated under section 32 .
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Duty to notify and provide information 31 The Bank must, as soon as feasible after it is of the opinion that an application for registration is complete, notify the applicant that the application is complete and provide the Centre with the information referred to in paragraphs 29 (1)(a) to (f) and any information respecting the applicant that is under the Bank’s control and is prescribed for the purposes of this section.
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Designation 32 The Minister may designate a person or government authority for the purposes of sections 33 , 39 and 60 .
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Copy of application 33 The Bank must, as soon as feasible after it is of the opinion that an application for registration is complete, provide the Minister and any designated person or government authority with a copy of the application.
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Review of application 34 (1) The Minister may, within the prescribed period, decide to review an application for registration if the Minister is of the opinion that it is necessary to do so for reasons related to national security. In that case, the Minister must notify the Bank of the decision and the Bank must then notify the applicant. Extension of decision period (2) The Minister may extend the prescribed period for one or more prescribed periods if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.
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Prohibition on registration 35 The Bank must not register an applicant during a period referred to in subsection 34 (1) or (2) unless the Minister informs the Bank that the Minister has decided not to review the application for registration.
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Timeline for review of application 36 If the Minister decides to review an application for registration, the Minister must conduct the review within the prescribed period but the Minister may extend the period for conducting the review for one or more periods equal to the prescribed period if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.
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Prohibition on registration 37 If the Minister notifies the Bank of a decision to review an application for registration, the Bank must not register the applicant unless the Minister notifies the Bank under section 38 of a decision not to issue a directive.
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Notice to Bank 38 The Minister must notify the Bank if, after completing a review of an application, the Minister decides not to issue a directive under section 40 .
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Additional information 39 An applicant or registered payment service provider must provide the Minister and any designated person or government authority with any additional information that the Minister, person or government authority requests in relation to the applicant or registered payment service provider or the retail payment activities the applicant performs or plans to perform.
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Directive to refuse registration 40 The Minister may, for any of the following reasons, issue a directive to the Bank to refuse to register an applicant: (a) there are reasons related to national security; (b) the applicant 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 application in question has not been complied with; (d) a condition imposed under section 43 in relation to the application in question has not been complied with; and (e) the applicant has provided false or misleading information.
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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. 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.
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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.
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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.
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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.
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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 . 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.
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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. 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. 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.
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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.
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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 an offence under section 74, 75 or 76, subsection 77(1) or section 77.01 or 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 serious violation, a very serious violation or a compliance order 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. 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. 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. 2021, c. 23, s. 177 “48” 2026, c. 4, s. 114
Retail Payment Activities Act — R-7.36 49
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.
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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. Decision (2) On completion of the review, the Governor must confirm the refusal or direct the Bank to register the applicant. 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.
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Notice to Centre 51 The Bank must, as soon as feasible, notify the Centre in writing of any refusal to register an applicant.
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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 an offence under section 74, 75 or 76, subsection 77(1) or section 77.01 or 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 serious violation, a very serious violation or a compliance order 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. 2021, c. 23, s. 177 “52” 2026, c. 4, s. 115
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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. 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. 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.
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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.
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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. 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).
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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 . 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).
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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.
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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. 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. 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.