payment service providers

Payment Service Providers (PSPs) can find refuge from AML legislation in Canada in certain circumstances, however, in light of the new Retail Payments Activities Act (RPAA), AML legislation is threatening to evolve to remove that shelter.  

Our AML consultants are called upon to consider business models of MSBs, Fintechs and other financial services players against known FINTRAC policy interpretations related to the Payment Service Provider distinction.  We are fully qualified to consult on matters in this sector, including the new Retail Payments Activities Act (RPAA). 

Even where there may be reasonable likelihood of an exemption, PSPs must often demonstrate to their financial services providers that they have managed their money laundering, terrorist financing, and sanctions risks. The AML Shop develops and evaluates specialized programs designed for that purpose.

EMERGENCIES ACT UPDATE

On February 14, 2022, the federal government invoked the Emergencies Act, that broadens the scope of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and sets out new obligations to financial institutions and service providers.

The regulations to achieve those means were included in the Emergency Economic Measures Order (Order) released on February 15, 2022. Our summary and interpretation of that Order is as follows:

There is an immediate order in place for financial institutions, insurance companies, trust and loan companies, money services businesses, crowdfunding platforms and/or payment service providers to continuously determine whether they are in control or possession of property by a designated person.

Click the button below to read the Initial Perspectives on the Emergencies Act from the experts at The AML Shop.