The regulations require investment industry firms (along with banks and other financial institutions) to identify whether they are holding assets for people engaged in prohibited activities — such as participating in gatherings that aim to prevent trade, or to interfere with critical infrastructure — and to stop providing financial services or carrying out transactions for them.
The rules also require online fundraising platforms that deal in both crypto and traditional currency — along with payment processors — to register and report transactions to the federal anti-money laundering agency, the Financial Transactions Analysis and Reporting Centre (FINTRAC).
While the intent of the emergency order is clear, at this point its practical application is not.
On background, industry sources suggest that firms would likely be concerned with getting clarity on who is being targeted by the order and that they’re legally protected when complying with its demands.
Laura Paglia, president and CEO of the Investment Industry Association of Canada (IIAC), indicated that the industry trade group has yet to hear from firms seeking its assistance in complying with the measures, but said that it’s “ready to work with them if issues arise.”
The Canadian Bankers Association said in a statement Wednesday that, as with other financial service providers, banks will “need to diligently implement the required measures.”
“Banks in Canada follow all applicable laws and regulations in carrying out their operations, in keeping with their commitment to protect the integrity of Canada’s financial system,” the association said.
Major Canadian banks have so far declined to comment individually and have referred to the CBA statement.
The emergency orders direct financial institutions to suspend services to both individual and business clients who they suspect are aiding the blockades.
They also require the institutions to conduct due diligence to identify accounts linked to the protests, and to disclose to the RCMP or CSIS any property or transactions they have identified as owned or controlled by those designated people.
Banks have been given protection from civil liabilities for actions done in following the orders.
In a media briefing Wednesday, senior government officials said they are in ongoing discussions with financial institutions on the applications of the order.
Asked if financial institutions have been given guidance over which people involved should be targeted, the officials said it was up to the institutions to do their due diligence but it would make sense to first focus on key sources of funding since the intent of the order is to limit funding to the protests.
To have financial accounts unfrozen, either because someone has stopped protesting or because of mistaken identity, officials said individuals would have to reach out to their financial institutions who would then validate the information and take necessary measures.
On the insurance side, the orders apply only to auto insurance. The Insurance Bureau of Canada said Tuesday that the association and its members would work with the federal government to determine how best to implement the orders.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
