Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Bank of Canada Warns PSPs Enforcement Coming
Payments Regulation | May 1, 2025
Image: PSP Connect, Retail Payments Supervision (Bank of Canada)
Bank of Canada Warns PSPs to Register Now or Face Enforcement
On April 30, 2025, the Bank of Canada (BoC) shared a new update on how it will enforce the Retail Payment Activities Act (RPAA). Payment service providers, known as PSPs, had until November 15, 2024 to register. Those who failed to do so are now being urged to act immediately or face enforcement.
BoC message:
“If you missed this deadline, you must apply immediately and at least 60 days before starting any retail payment activities. Failure to register may result in enforcement action,” the Bank stated in its April 30 message.
Enforcement Process Updated
The Bank has updated its enforcement process outlining they may contact a PSP that is under investigation. Communication methods may include phone calls, encrypted email, courier delivery, and other secure channels. The approach is inline with the enforcement tools at their disposal published in June 2024, which include monetary penalties and compliance orders.
See: RPAA Registration Deadline Passed See Who Applied
The BoC is also sending a reminder of how to submit a registration application through PSP Connect, the Bank's secure online portal.
Steps to Register as a PSP
1. Create a PSP Connect account
Here's a handy step by step tutorial and video available on the Bank of Canada's website to help you with the process.
2. Enter the required information and upload all documents
You can save your progress and return later if needed.
3. Submit your completed application and pay the fee
There's a $2500 application fee that must be paid in full by either credit card or debit. Alternative payment arrangements such as direct deposit or wire transfer may be arranged if several card payment attempts fail.
If you are new to the process or need further help, and have missed the workshops/tutorials, the Bank encourages PSPs to use its general inquiries form.
Why This Matters
This update signals that the BoC is shifting from education to enforcement, as they are making it clear they are ready to take action against unregistered PSPs. Regulatory oversight of retail payments will only become more structured from here, and payment providers must meet their legal obligations or face financial and operational consequences.
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