Find out about the Bank’s proposed role in a new retail payments supervision framework—and how you can get involved.
The federal government announced in the Budget 2019 that it plans to introduce legislation to create a new framework to supervise retail payments. In this proposal, the Bank of Canada would:
- oversee payment service providers to ensure they comply with operational and financial requirements
- maintain a public registry of regulated payment service providers
This framework would aim to ensure that all payment services are safe to use and functioning properly, and that users of these services are better protected.
Payment service providers
Payment service providers are businesses that offer any of the following services:
- providing and maintaining a payment account for transferring funds electronically
- initiating payments
- authorizing and transmitting payment messages
- holding funds until the end user withdraws them or spends them through an electronic fund transfer
- clearing and settling payments
Consulting the payment service industry
The Bank of Canada is gathering information from industry and stakeholders to better understand the retail payment services landscape. When the Bank of Canada begins developing guidance, we will plan further engagement activities.
The Interim Retail Payments Advisory Committee is providing industry expertise to the Bank of Canada.
The Department of Finance Canada:
- is developing legislation for the Retail Payments Supervision Framework
- will publish the new rules if the government enacts the legislation and the Treasury Board approves them
After these steps are done, the Bank of Canada will:
- develop guidance for payment service providers based on the new rules
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