Standing Senate Committee on Banking, Commerce and the Economy (BANC) (May 30, 2014)
ANNEX B: Summary of Budget 2024 initiatives of relevance to Payments Canada
Pre-Budget consultations
As part of pre-Budget consultations, Payments Canada provided submissions requesting that the Budget include changes to the Canadian Payments Act. These changes would expand Payments Canada’s membership eligibility to include local credit unions, payment service providers and financial market infrastructure entities, all of whom are currently regulated through other means.
More on Payments Canada’s pre-Budget submissions and consultation highlights:
• Submission: https://www.payments.ca/legislative-changes-needed-stronger-consumer-protection-and-financial-stability
Post-Budget reaction
On April 16, after the Budget, Payments Canada issued a news release highlighting the following measures from Budget 2024:
- Consumer-driven banking — The Financial Consumer Agency of Canada (FCAC) will be mandated to oversee, administer and enforce Canada’s consumer-driven banking framework. This spring, the government plans to introduce legislation to lay the groundwork of this framework.
- Free and affordable bank accounts — FCAC is in negotiations with banks to secure enhanced agreements to offer modernized $0 per month and up to $4 per month bank accounts that reflect the realities of banking today, including more transactions, as well as expanded eligibility for $0 accounts.
- Anti-money laundering and anti-terrorist financing — This proposal would introduce amendments to strengthen the supervision, enforcement and information-sharing tools of Canada’s Anti-Money Laundering and Anti-Terrorist Financing framework.
- Free financial advice — This proposal would provide $60 million over five years, starting in 2024-25, to Prosper Canada to expand the community-delivered financial help services available to Canadians. These services are expected to reach one million low-to-moderate-income Canadians and help them receive nearly $2 billion in unclaimed tax and benefit income.
- Non-Sufficient Funds (NSF) — The government announced its intention to cap NSF fees charged by banks to $10 per instance and other measures.
- Deposit insurance review — The government announced its intention to undertake a review of the federal deposit insurance framework, starting in 2024.