2025 is becoming a year of significant alterations in many spheres, the field of monetary offerings in particular. It is of high importance to keep up with these developments in order to stay adhered to regulations and identify new favorable circumstances for enterprises.
This article will make you go over the key alterations you ought to take into account.
In the first day of 2025, the country in question introduced alterations to interest rates. The maximum allowable rate for loans is reduced to 35% per year. Stricter regulations were also put forward to put a stop to the promotion of loans beyond this limit.
There are exceptions for entity loans. For those taken out by businesses for commercial purposes, a rate of up to 48% can be applied for amounts between CA$10,000 and CA$500,000. Loans over CA$500,000 are exempt from these restrictions.
Additionally, payday lenders will face a cap on charges, set at CA$14 for every CA$100 borrowed in regulated provinces. This limit does not include certain fees for missed payments or failed transactions, provided that these fees remain less than CA20$.
In February of the same year, Payments Canada began a consultation with the aim of gathering feedback on proposals. It was needed to expand access to its systems for registered PSPs, local credit unions, and designated clearing houses. Recent amendments to the CPA have made these organizations entitled for membership, until a date set by the Governor in Council. Key proposals include requiring PSPs to prove enrollment for membership, allowing non-member providers on the SAC, and removing restrictions on member participation in systems.
There were new updates to Canada’s Code of Conduct for the PCI. It now encompasses payment card network operators, issuers, and service givers. The main goal of these updates is to make costs clearer and give merchants more variants.
Acquirers and providers will need to give detailed cost information in their processing quotes. It is essential to make it easier for merchants to compare different offers. Merchants will also get more comprehensive monthly statements that break down fees, transaction volumes, and effective rates for various card types.
Additionally, payment network operators must inform acquirers about any fee changes well beforehand. Merchants will have the right to cancel their agreements without penalties in the boundaries of 70 days of a fee enlargement or the introduction of new fees. Acquirers are obliged to notify merchants about upcoming fee changes 30 to 60 days before they take effect. These measures aim to improve clarity and fairness in payment processing.
The Bank of Canada is setting up new important rules for PSPs under the RPAA. These are comprehensive obligations created to ensure the stability and safety of retail payment operations. Providers will need to put in place detailed structures for managing hazards and incident response. This means addressing everything from cybersecurity and fraud to human resources and external-party risks. A senior officer at each PSP will be responsible for overseeing these plans. It requires yearly reviews and independent checks every three years. Alongside this, any PSP that holds client’s money must have robust ways to safeguard them. They’ll need a written plan outlining how they ensure quick access to funds and how insurance or guarantees would pay out in an insolvency event. These safeguarding frameworks also demand yearly reviews and independent assessments.
On the reporting side, PSPs have three key duties: they must promptly report incidents to the Bank and affected individuals, notify the institution before making any major changes to their offerings or starting new ones, and provide comprehensive reports. While all these rules are mandatory, PSPs are expected to tailor their efforts to match their specific size and the hazards they encounter.
Failing to put these frameworks in place or properly safeguard funds is considered as a very serious violation.
These new regulations also open up different business opportunities.
The country is strengthening its AML/ATF rules. By October several changes will be put forward. Businesses involved in importing and exporting goods will need to report specific monetary data.
New types of enterprises will face expanded obligations for record-keeping, client checks, and transaction controlling.
There will be increased scrutiny on who truly owns companies, with requirements to report any major discrepancies. Financial institutions will also have to report property linked to sanctions under various laws.
In real estate, title insurers and property representatives will have new obligations.
Casinos will need to identify the ultimate recipients of large payouts. Money service entities will face stricter requirements, encompassing criminal record checks for senior staff and investors, with regular re-submissions.
Voluntary information sharing among regulated entities to combat financial crime will be allowed, provided they have an approved privacy code of practice. Additionally, a new partnership has been formed between law enforcement and major financial institutions to improve intelligence sharing and combat threats.
Canada’s plan to roll out open banking by early 2026 is moving forward but faces some uncertainty. The initiative, announced in the 2024 fall update, aims to give people more control over their monetary data by allowing them to share it securely with trusted companies.
The system will be overseen by the national financial supervisory body, which is adding a senior leadership role to handle this work. At first, only the biggest banks will be required to join, while smaller ones can choose to take part. The data shared will start out as “read-only”. It means that companies can view your monetary data but can’t make changes like moving money. Over time, the system may allow for more advanced features.
To ensure safety and trust, companies that want access to this data will have to go through a formal approval process. This includes meeting strict standards around privacy, security, and consumer protection. A list of approved participants will be kept up to date and publicly available.
The rules will also include safeguards to protect national interests, and the government will have the power to make sure organizations follow technical and legal standards.
The first steps were taken in June 2024 with new laws to set up the system’s structure. However, many parts still need to be finalized. While the overall idea of open banking has support from different political parties, recent debates have exposed divisions. Depending on how things unfold in Parliament and the election, the project could see changes or delays.
In 2025, many new rules are bringing big changes to how people and businesses handle money and services. These updates are meant to make things clearer, safer, and more fair for everyone. They also help protect people’s data and give them more control over how it’s used. Some changes are already in place, while others are still being worked on. It’s important for businesses to stay informed so they can follow the rules and find new chances to grow.