On March 22 2017 the government tabled its 2017 Budget. The financial services proposals are aimed at facilitating:
Financial sector stability measures
Bank resolution regime
The 2017 Budget proposes legislative amendments that would:
These proposals are in addition to last year's bank resolution regime changes. It is expected that the proposed amendments will aim to provide more specific and formalised powers to the CDIC and the Office of the Superintendent of Financial Institutions.
Strengthening oversight of financial market infrastructures
The government proposes to introduce legislative amendments to the Payment Clearing and Settlement Act to expand and enhance the oversight powers of the Bank of Canada. The Bank of Canada oversees designated financial market infrastructures (FMIs).(1) The government proposes to increase the Bank of Canada's ability to identify and respond to risks to FMIs and to implement an FMI resolution framework to allow for government intervention if a designated FMI fails.
Strengthening corporate and beneficial ownership transparency
The 2017 Budget provides that the government will collaborate with the provinces and territories to put in place a national strategy to strengthen the transparency of legal persons and legal arrangements and improve the availability of beneficial ownership information. This appears to be a response to criticism of the Financial Action Task Force (FATF) that was included in the 2016 FATF Mutual Evaluation of Canada. As no public registers that currently collect beneficial ownership information, the FATF's concern is that Canadian legal entities and legal arrangements are at high risk of misuse for money laundering and terrorist financing.
Strengthening anti-money laundering and anti-terrorist financing regime
The government proposes to introduce legislative amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to:
The government will release a consultation paper on a new retail payment oversight framework in 2017. Based on the results of consultations, it will propose legislation to implement an oversight framework. The previous government consulted on this topic in June 2015.
The budget plan does not set out any timing for the introduction of legislation to implement these measures. As in previous years, it is expected that bills will begin to be released in the coming months.
For further information on this topic please contact Sharissa Ellyn at Norton Rose Fulbright Canada by telephone (+1 416 216 4000) or email (firstname.lastname@example.org). The Norton Rose Fulbright Canada website can be accessed at www.nortonrosefulbright.com