In anticipation of the upcoming federal budget, Parna Sabet-Stephenson and Alana Scotchmer, members of Gowling WLG’s Financial Services and Technology (FSxT) Group, recently spoke to the Financial Post about what the budget may have in store for Canada’s financial services sector – particularly with respect to open banking and financial crime.
In the 2023 Fall Economic Statement, Ottawa committed to adopting a comprehensive framework for open banking (also known as “consumer-driven banking”) by 2025 – a move that will give consumers greater control over their financial information, while also fueling innovation and collaboration throughout the sector. The federal budget is expected to offer a roadmap for what comes next.
“We understand that the budget will reveal timelines for the implementation of consumer-driven banking and that there may be different timelines for different aspects, with some elements to be fast-tracked to permit implementation,” said Parna. “We will be watching how this will be implemented.”
The budget is also likely to contain provisions related to financial crime regulation, with an emphasis on Canada’s anti-money laundering efforts. “[F]ollowing consultations last year, there are expectations for changes to modernize the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and potentially give more powers to enforcement agency FINTRAC,” said Alana.
Click on the link below to read the full article, which was syndicated in the Financial Post, Windsor Star and multiple other publications across the country:
Ready to learn more? Explore our recent article: Ottawa is set to unveil its open banking framework in Budget 2024. Here are five things banks and fintechs will be watching closely
About Gowling WLG’s Financial Services and Technology (FSxT) Group
Gowling WLG FSxT is a unique hub that breaks down complex Canadian law and regulation into practical, relevant and concise insights tailored to your industry. Curated by Gowling WLG’s leading technology, financial services and regulation lawyers, FSxT is your one-stop-shop for all things legal at the intersection of financial services and technology – from emerging trends to need-to-know compliance updates. Learn more