💳 What is the RPAA?
The Retail Payment Activities Act (RPAA) is a new framework established under the Canadian Payments Act to supervise Payment Service Providers (PSPs) nationwide. 🏦 The Bank of Canada will oversee PSPs involved in retail payments to ensure:
- 🔐 Security and managing operational risks
- 🛡️ Protection of customer funds
- 🤝 Building trust in Canada's payment system
The RPAA also creates a pathway for PSPs to join Payments Canada and use Canada’s Real-Time Rail payment system once membership criteria are updated in the Canadian Payments Act. 🚄💰
❓ Does this apply to you?
The RPAA will be required for businesses that perform any of the following activities:
- 📲 Providing or managing an account for one or more end users
- 💼 Storing funds on behalf of an end user
- 🔄 Initiating an electronic funds transfer when requested by an end user
- ⚖️ Offering clearing or settlement services
- ✅ Approving or processing instructions related to electronic funds transfers
For a detailed list of activities under the scope of RPAA, check out this page from the Bank of Canada:
🔗 Bank of Canada - RPAA Criteria
📋 What do you need to do?
If the RPAA applies to your business, there are new requirements to follow in order to continue operating as a PSP. You’ll need to:
- 📝 Register as a PSP with the Bank of Canada
- 🗂️ Make significant changes to recordkeeping, reporting, and storage of client funds
- 📊 Review your compliance program to ensure it aligns with the new regulations
🚀 AML Incubator Can Help!
At AML Incubator, we can assist you in preparing for the upcoming RPAA registration. 📋 We offer:
- 💼 Regulatory advice on the changes you’ll need to implement
- 🛠️ Guidance through the registration process
- ❌ Helping you avoid non-compliance issues
If you're still unsure whether the RPAA applies to you, feel free to reach out! 🤔 We're more than happy to help you understand how this may impact your business model. 💡
📞 Contact us today for a free consultation!
#fintech #compliance #regulation #kyc #partners #rpaa #fintrac #AML #canada #payments