Essential Bank of Canada Registration for MSB

Under the Retail Payment Activities Act (RPAA) and its associated regulations (RPAR), every Money Services Business (MSB) subject to them, irrespective of where it is in the payment chain, is responsible for registering with the Bank of Canada before conducting any retail payment activities.  

As the deadline for mandatory registration with the Bank of Canada rapidly approaches, the urgency for MSBs to comply with the new regulations cannot be overstated. Non-compliance carries severe consequences, but our team of experts stands ready to guide you through every step of the process, ensuring you meet all necessary requirements smoothly and efficiently. 

Comprehensive Registration Services 

Navigating the registration process with the Bank of Canada can be complex. Our Complete Registration Services offer thorough assistance in creating and submitting your application, alleviating the administrative burden and ensuring accuracy and compliance from the outset. 

Tailored Policy Review and Update 

Regulatory standards are evolving, and it’s essential to keep your compliance policies up to date. Our tailored Policy Review and Update services ensure that your policies meet the new standards set forth by the Bank of Canada, providing you with peace of mind and operational assurance. 

Safeguarding Solutions 

Setting up the required safeguarding deposit accounts is crucial for protecting user funds and maintaining regulatory compliance. Our Safeguarding Solutions provide the support you need to establish these accounts efficiently and effectively. 

Understanding the RPAA and Its Implications 

The introduction of the Retail Payment Activities Act (RPAA) in 2021 marked a significant milestone in regulating payment services within Canada. This legislation, further detailed by the Retail Payment Activities Regulations as of November 2023, outlines the roles, responsibilities, and compliance requirements for Payment Service Providers (PSPs). The Bank of Canada, in collaboration with FINTRAC and the Department of Finance Canada, oversees this process, ensuring rigorous compliance evaluations and safeguarding financial stability. 

Key Registration Deadlines and Requirements 

• PSP Connect System: The electronic registration platform, PSP Connect, will be accessible from November 1, 2024. Entities must complete their registration between November 1 and November 15, 2024. 

• Non-Compliance Penalties: Failure to register by the deadline can result in fines starting from CAD 1 million, and entities will be prohibited from performing payment functions until they are registered. 

Steps for registration include the utilising PSP Connect, providing detailed business information among other legal and trade names, business addresses, contact details, ownership information, business structure, payment functions, agent details, and transaction volumes. Additionally, outlining safeguarding measures detail plans for protecting user funds, including risk management and incident response strategies is of the most important of the several aspects of this process. 

Preparing for a Seamless Registration Process 

The registration process may seem daunting, yet with our experts can navigate these requirements with confidence. Ensuring compliance with the RPAA and its regulations not only aligns your operations with the legal framework but also enhances the security and reliability of your services. Let us help you safeguard your business’s future and contribute to the stability of Canada’s financial system. 

Contact us at info@salvusfunds.com if you you have any questions or require support with your Money Service Business RPAA registration application; our SALVUS Payment Services Licensing team is ready to help.   

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