Canada's Department of Finance has pre-published two sets of proposed regulations in the Canada Gazette, Part I: measures to combat consumer-targeted fraud in banking and rules to implement consumer-driven banking. The anti-fraud proposal would operationalize recent Bank Act amendments requiring banks to detect and prevent consumer-targeted fraud and mitigate its effects, while the consumer-driven banking proposal would support the coming into force of the Consumer-Driven Banking Act and the wider framework for secure financial data sharing with approved service providers. For consumer-targeted fraud, banks would need to obtain consumers' express consent before enabling prescribed electronic funds transfer capabilities such as wire transfers, allow consumers to disable prescribed capabilities, and process requests to change withdrawal and transaction limits within set timelines. The proposal also sets what fraud-related information banks must collect and report to the Financial Consumer Agency of Canada and when it must be reported. For consumer-driven banking, the regulations would specify requirements on data scope, accreditation, national security, duties of participating entities and accredited third-party service providers, liability, the technical standards body, evidentiary privilege, assessment fees and violations. Under the Act, the Bank of Canada would oversee compliance and maintain a public registry of participating entities and accredited third-party service providers. The anti-fraud regulations are open for comment for 30 days and are positioned as a first step ahead of the government's broader National Anti-Fraud Strategy. The consumer-driven banking regulations are open for comment for 60 days and would come into force on a staggered basis after final publication, beginning with accreditation and followed by common rules and assessment fee requirements within one year, with product- and service-specific timing to be set out in the final regulations.

Original source