Federal Financial Sector Framework

Fintech Market Study Workshop

February 21, 2017

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Finance Canada

Minister of Finance broadly responsible for economy and financial sector

• statutes (e.g., FRFI statutes, regulators’ statutes)

• policy frameworks (e.g., anti-money laundering/anti-terrorist financing, payments)

• agencies (e.g., OSFI, FCAC, Bank of Canada, FINTRAC, Payments Canada)

Multiple co-ordination

and advisory

mechanisms

• interagency (e.g., SAC, FISC, HoA)

• stakeholder (e.g., FinPay and other advisory groups, formal and informal consultations)

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Key Considerations

Objectives for the financial sector (stability, efficiency, utility)

Facilitating innovation and its benefits

• access

• efficiency

• economic growth

Mitigating risks

• financial stability

• money laundering / terrorist financing

• consumer protection

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Current Initiatives

Anti-Money Laundering

• virtual currency regulations

Payments

• retail payments oversight framework

2019 review

• initial consultation paper released August 2016

• feedback suggests greater clarity and flexibility would improve framework

• second consultation paper later in 2017

Engagement

• domestic (stakeholders, federal agencies)

• international (other jurisdictions, Financial Stability Board and other international organizations)