The news: Banks and other financial institutions (FIs) in Canada are compelled to assist the federal government in quashing anti-vaccine-mandate convoy protests after Prime Minister Justin Trudeau invoked the Emergencies Act, per the CBC.
What does this mean? The CBC reports that requirements cover banks, crypto platforms, credit unions, and insurance companies.
Their compliance mandates are expansive and include:
The Designated Persons Question: The restrictions cover what the law defines as “designated persons.”
The big takeaway: The Emergencies Act adds another time-consuming review to banks’ usual compliance-related duties, underscoring the importance of know your customer (KYC) practices and related technology investments.
FIs with bigger and more experienced compliance arms are better prepared to handle this slog. Canada’s Big 5 banks are likely to have an easier time than upstart fintechs. But since the anticipated scope of affected customers is relatively small, enforcement of the suddenly invoked Act can serve as a good pressure-test of financial institutions’ agility in responding to compliance issues.
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