New rules for PSPs are on their way. It will become very important for both local and overseas providers to enroll with the country’s central fiscal institution. An official from this establishment says that it is of high significance for these providers to perform enrollment. She also outlines the stages they need to follow so as to satisfy the demands and tells how the bank is going to provide help with the registration.
This article will make you go over the main alterations regarding enrollment of PSPs in Canada.
A local governmental body has put forward RPAA in order to guarantee confidence in the sphere of PSP. It is believed that the main goal of this Act is safety of Canadian end-users throughout delivering and keeping money by means of providers. The RPAA reflects a multinational trend towards regulating PSPs and aims to convert an unregulated industry into a more dependable system.
The local bank has a crucial role in assisting PSPs as they prepare for abidance by the RPAA. The primary goal of the bank, as the supervisory body, is to develop complete adherence to the new rules. In order to achieve it, PSPs are going to be provided with all necessary resources to comprehend their duties and mitigate hazards effectively.
The financial institution has elaborated a comprehensive application test consisting of four stages. It is necessary for helping PSPs determine if they fall under the new rules. In addition, a detailed guide and webinar regarding enrollment process are available on the website of the bank.
This institution has also created a list of scenarios that highlight more complex cases, helping PSPs in assessing their regulatory status. This resource is elaborated to clarify any uncertainties and has received positive feedback from users.
PSPs are obliged to take specific actions to abide by the enrollment procedure. This involves demonstration of efficient management of operational risks, particularly in safeguarding user funds. Between the registration period which lasts from November 2024 and September 2025, PSPs may be required to provide complementary information. If necessary, they will need to improve their documentation and enhance their operational risk mitigation practices. After the go-live date in 2025, PSPs will face reporting obligations that will vary based on their size and level of risk.
The local bank, as the regulatory authority, plans to improve adherence without initially resorting to fiscal punishments. The main objective is to guide PSPs in taking the right steps by offering helpful resources and details. The bank aims to create a secure and confident payments ecosystem and encourages PSPs to recognize the importance of registering as part of this system. While the bank has measures in place to identify non-compliant enterprises and will reach out to them, any enforcement actions will be tailored according to the size and risk profile of the PSP.
While enrollment under the RPAA is a legal demand rather than a licensing procedure, PSPs can benefit from it. By registering, they show their commitment to meeting RPAA standards, which helps create a great level of security for users. This enrollment enhances credibility and serves as an important step towards engaging with Canada’s future instant payments system.
Once the go-live date arrives in September 2025, enrolled PSPs will need to fulfill certain reporting obligations. These responsibilities will be tailored based on the size and risk level of each provider. The RPAA aims to ensure a secure environment for local consumers and to strengthen trust in the industry. Additionally, the upcoming RTR instant system, which has to be launched in 2026, will alter the way Canadians make and receive payments, offering immediate access to funds while enhancing security for users.
It is important for PSPs based outside Canada to enroll with the bank under the new regulations. The supervisory body has the authority to enforce adherence measures on these foreign entities, and there will be collaboration with regulators in other regions. Awareness of these obligations is crucial, as they apply to all providers engaged in such activities. Efforts are being made to ensure that these entities are informed about the new demands.