Information Processing Activities (Banks and Authorized Foreign Banks) Regulations (SOR/2001-391)

Interpretation

Marginal note:Definitions

1 The definitions in this section apply in these Regulations.

Act

Act means the Bank Act. (Loi)

information processing activity

information processing activity means, in relation to a bank, an activity referred to in any of subparagraphs 410(1)(c)(i) to (iv) of the Act, and in relation to an authorized foreign bank, an activity referred to in any of subparagraphs 539(1)(b.1)(i) to (iv) of the Act. (activité de traitement de l’information)

specified circumstances

specified circumstances means circumstances where the information processing activity

• (a) is related to generating, recording or reporting on postings to accounts;

• (b) was first carried on by the bank or authorized foreign bank for its own internal purposes and is an integral part of its banking operations; or

• (c) is related to payments from and deposits to accounts and was carried on by the bank before December 1, 1980. (circonstances déterminées)

Exemption from the Requirement to Obtain the Minister’s Approval

Marginal note:Circumstances where Minister’s approval not required

2 A bank or authorized foreign bank is exempted from the requirement to obtain the prior written approval of the Minister

• (a) in specified circumstances for carrying on the following information processing activities, namely,

  • (i) the classification and reporting of payments from and deposits to an account,

  • (ii) payment item account reconciliation, and

  • (iii) the institution and processing of pre-authorized debits and credits;

• (b) where the information processing activity is carried on in respect of a financial institution or any other entity that is primarily engaged in the business of providing financial services, for any information processing activity that was first carried on by the bank or authorized foreign bank for its own internal purposes and is an integral part of its banking operations, including any information processing activity related to

  • (i) clearing and settlement,

  • (ii) deposit and loan accounting,

  • (iii) mortgage or hypotheque accounting,

  • (iv) securities accounting,

  • (v) general ledger accounting,

  • (vi) credit or payment cards, or

  • (vii) foreign exchange trading accounting;

• (c) where the information processing activity is carried on in respect of an employer, for the preparation of the employer’s payroll by

  • (i) the calculation of gross salary or wages of the employees on the basis of the number of hours worked, items produced, data on rates of pay or commissions and other relevant information,

  • (ii) the calculation of net salary or wages of the employees and the preparation of cheques and cheque stubs or other evidence of payment, pay slips or similar statements that present the details of the gross to net salary or wage calculation,

  • (iii) the preparation of summary reports for the employer to permit an adequate audit and control of the payroll operation,

  • (iv) the preparation of an individual employee’s earnings records,

  • (v) the production of forms or statements in respect of the earnings of an individual employee or group of employees and the amounts withheld from those earnings, if those forms or statements are required under any federal or provincial law, and

  • (vi) the provision of summary reports and the compilation of lists of disbursements relating to amounts withheld from the gross earnings of employees;

• (d) where the information processing activity is carried on in respect of an employer, for the compilation of any report or list from any of the data obtained by the bank or authorized foreign bank in order to carry on an information processing activity described in paragraph (c);

• (e) where the information processing activity is carried on in respect of a farmer, for general ledger accounting;

• (f) where the information processing activity is carried on in respect of a subsidiary of the bank or authorized foreign bank, for any information processing activity that is directly related to the business activity of the subsidiary and that

  • (i) is general ledger accounting or an accounts receivable service,

  • (ii) is related to generating, recording or reporting on postings to accounts,

  • (iii) was first carried on by the bank or authorized foreign bank for its own internal purposes and is an integral part of its banking operations, or

  • (iv) is related to payments from and deposits to accounts and was carried on by the bank before December 1, 1980; and

• (g) where the information processing activity is carried on in respect of an entity that does not carry on information processing activities for other persons and of which the bank or the authorized foreign bank holds more than 10% of the voting shares, for any information processing activity that

  • (i) is related to generating, recording or reporting on postings to accounts,

  • (ii) was first carried on by the bank or authorized foreign bank for its own internal purposes and is an integral part of its banking operations, or

  • (iii) is related to payments from and deposits to accounts and was carried on by the bank before December 1, 1980.

Requirement to Provide Information to a Client

Marginal note:Information about client’s business

3 If a bank or authorized foreign bank directly or indirectly carries on in Canada an information processing activity with respect to which it is exempted under section 2, it must, at the request of a client and on the payment of a reasonable fee, make available to the client within a reasonable time after the request, in machine-readable or printed form, at the option of the client, any information concerning the business of the client that is acquired in the course of carrying on the information processing.

Coming into Force

Marginal note:Coming into force

Footnote ^*4 These Regulations come into force on the day on which paragraphs 410(3)(a) to (c) and 539(3)(a) to (c) of the Bank Act, as enacted by subsections 100(2) and 139(3) of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, come into force.

• Return to footnote ^*[Note: Regulations in force October 24, 2001, see SI/2001-102.]