Due diligence checklist, Canada
Retail Payment Activities Act: what to ask a vendor
Retail Payment Activities Act and Payments Canada rules. Bank of Canada and Payments Canada. Payment service providers register with the Bank of Canada and manage operational risk and end-user funds.
What it is
Payment service providers register with the Bank of Canada and manage operational risk and end-user funds.
Who it applies to
Applies to every financial institution in Canada, when procuring payments.
What to ask a vendor, and the evidence to request
| # | Ask the vendor for | Evidence to request |
|---|---|---|
| 1 | Operational risk and incident management that meets the Act's requirements | A written statement from the vendor, with the policy, specification or sample that supports it. |
| 2 | Conformance with Payments Canada rules and standards, including ISO 20022 where it applies | Conformance test results or a written statement of conformance against the standard, with the version supported. |
In every case
- A named contact at the vendor responsible for this regime, and how the vendor tracks changes to it.
- Which named customers the vendor already serves under this regime, as references you may call.
This checklist is a starting point for a procurement team, not legal advice. Read it with the regulator's own page, your institution's policies and your legal and risk teams; the regime may have changed since the date on this document.
Next
- Every checklist, by country
- What a market scan is and how to run one
- Have Vederca run the procurement: the regime goes into the register as a must-have