The Reporter provides a monthly summary of Canadian federal legislative and regulatory developments of relevance to federally regulated financial institutions. It does not address Canadian provincial financial services legislative and regulatory developments, although this information is tracked by BLG and can be provided on request. In addition, purely technical and administrative changes (such as changes to reporting forms) are not covered.
February
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Institution |
Published |
Title and Brief Summary |
Status |
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Bank of Canada |
Consultation Paper — Enhancements to the Canadian Overnight Repo Rate Average (CORRA) The Bank of Canada, on behalf of the Canadian Alternative Reference Rate Working Group (CARR), published a consultation on proposed enhancements to the Canadian Overnight Repo Rate Average (CORRA) risk-free interest-rate benchmark. The consultation is being conducted in the context of ongoing global efforts to develop robust, risk-free or nearly risk-free reference rates. |
Comments should be provided by April 30, 2019. |
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FATF (Financial Action Task Force) |
The FATF is currently developing guidance to assist countries, competent authorities and professionals in the legal, accountancy and trust and company service providers sectors in the application of a risk-based approach to Anti-Money Laundering/Combating the Financing of Terrorism. The guidance is intended to provide support both to the private sector and public authorities, by focusing on money laundering / terrorist financing risks and associated mitigation measures. The FATF is consulting private sector stakeholders before the guidance is finalized, and wishes to receive sector views on, and specific proposals to, the text of the three guidance documents: |
Comments should be provided by April 8, 2019. |
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SWIFT (Society for Worldwide Interbank Financial Telecommunication) |
SWIFT publishes cybersecurity counterparty risk guide This document provides general and non-binding guidance for SWIFT users on how to use and interpret cybersecurity data from counterparties within the financial services ecosystem. The guidance will assist customers in incorporating counterparties' cybersecurity attestations against SWIFT's Customer Security Control Framework (CSCF). The CSCF establishes a security baseline of mandatory and advisory controls for the entire user community, against which SWIFT users are required to self-attest their compliance on an annual basis. The controls are reviewed every twelve months, and customers had until December 31, 2018 to attest their compliance against the applicable controls — a deadline which 94 per cent of customers met. |
Effective |
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OSFI |
Draft Guideline — Net Stable Funding Ratio Disclosure Requirements OSFI is issuing for comment a draft guideline on the Net Stable Funding Ratio (NSFR) disclosure requirements. OSFI is proposing implementation of the NSFR public disclosure by Canadian Domestic Systemically Important Banks to commence with the quarterly reporting period ending January 31, 2021. |
Comments were due by March 15, 2019. |
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OSFI |
Proposed changes to the Liquidity Adequacy Requirements Guideline OSFI is issuing proposed revisions to the Liquidity Adequacy Requirements (LAR) Guideline. Since the financial crisis of 2008, liquidity risk management has continued to be a key area of focus for deposit-taking institutions (DTIs) and supervisors. Importantly, DTIs are expected to have a liquidity risk management framework that, amongst other things, ensures they maintain sufficient liquidity to withstand a stressed environment. The LAR Guideline defines and assigns run-off rates to various categories of funding, according to the degree to which those sources of funding would be at risk under stress conditions. Since the Liquidity Coverage Ratio and Net Cumulative Cash Flow were first issued in 2014, DTIs' funding models and deposits product offerings have continued to evolve. Given these developments OSFI has reassessed the assumptions built into its regulatory liquidity metrics, particularly those relating to the stability of funding sources, to ensure that the metrics remain appropriate in maintaining a resilient banking sector. OSFI is targeting January 1, 2020 for implementation of the proposed revisions to the LAR. |
Comments were due by March 15, 2019. |
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FINTRAC |
February 8, 2019 |
Assessment Manual and Compliance Framework To support Canadian businesses in their compliance efforts, FINTRAC has published a Compliance Framework and Assessment Manual. They explain how FINTRAC ensures and assesses compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). |
Effective |
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FINTRAC |
February 8, 2019 |
Administrative monetary penalties FINTRAC has posted its revised Administrative Monetary Penalties (AMPs) policy, which outlines the new method of calculating penalties for non-compliance with PCMLTFA and Regulations. FINTRAC undertook a comprehensive review of its AMPs program to address decisions of the federal courts in 2016. The Financial Transactions and Reports Analysis Centre of Canada made a number of revisions to its administrative monetary penalties program, including:
By providing comprehensive information on the enhancements to its AMPs policy and penalty calculation methodology, FINTRAC wants to ensure that reporting entities will have a better understanding of its program and approach. |
Effective |
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Canada Deposit Insurance Corporation Act |
February 20, 2019 (Gazette) |
These amendments are the result of an annual review of the regulations to ensure they are up to date. The amendments primarily address two issues:
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Effective February 8, 2019. |
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Payments Canada |
January 7, 2019 |
Payments Canada: Changes to Our Rules and Standards The following amendments were approved by the board and the Department of Finance:
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Effective February 13, 2019. |
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