Is your company prepared for the upcoming Retail Payment Activities Act?
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!
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