Bill C-15 Part 5 Section 5

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5 Bill C-15 Division Summaries with Vote Questions. Read each summary. Then vote below.

  • Division 15: Bank Act Cheques
  • Division 16: Bank Act Fraud
  • Division 17: Fed Credit Union Growth
  • Division 18: Special Economic Measures
  • Division 19: Basic Pension Accommodation

DIVISION 15 Bank Act (Funds Deposited by Cheque) Bank Act (1991, c. 46) — ss. 331–332

WHAT THE BILL SAYS

  • s. 331 — Replaces s. 627.22 of the Bank Act. Banks must now make a prescribed amount of cheque deposits available for immediate withdrawal. If no amount is prescribed by regulation, the default is $250
  • s. 332 — Comes into force on a day fixed by order of the Governor in Council — no fixed date

PLAIN LANGUAGE SUMMARY

Right now banks can hold your entire cheque deposit before letting you access any of it. This clause requires banks to release a minimum amount immediately — set at $250 unless regulations set a different number.

The $250 floor is in the law. But the actual amount can be changed by regulation at any time — meaning Cabinet, not Parliament, controls what you can access from your own deposit.

One flag: s. 332 gives the Governor in Council control over when this takes effect. The consumer protection it offers doesn't kick in until Cabinet decides it does.

DIVISION 16 Bank Act (Consumer-targeted Fraud) Bank Act (1991, c. 46) — ss. 333–336

WHAT THE BILL SAYS

Division 16 adds a new consumer fraud protection framework to the Bank Act, covering personal deposit accounts held by individuals (not businesses):

New definition (s. 333) "Consumer-targeted fraud" is defined to include unauthorized transactions and transactions authorized through coercion or deception

Account capability controls (s. 334 — ss. 627.131)

  • Banks cannot activate a prescribed account capability without the account holder's express consent
  • Account holders have the right to deactivate any prescribed account capability

Withdrawal and transfer limits (s. 334 — ss. 627.132) Account holders may adjust their own limits on: maximum withdrawal or transfer amounts, number of transactions in a given period, maximum total withdrawals in a given period, and any prescribed limit — subject to the institution's own ceiling and taking effect within a prescribed period

Real-time electronic notification (s. 334 — ss. 627.133) Banks must notify account holders immediately by electronic means when a capability is activated or deactivated or a limit is adjusted — unless the account holder has opted out in writing or has not provided contact information

Fraud detection policies (s. 334 — ss. 627.134) Banks must establish and adhere to policies and procedures covering: criteria for identifying suspicious transactions, criteria for suspending or cancelling transactions, communication to affected persons, criteria for determining whether someone is a fraud victim, available remedies, and staff training — with annual reporting to the Commissioner

Commissioner reporting (s. 334 — ss. 627.135) The Commissioner consolidates institutional fraud reports into an annual report to the Minister — with confidentiality protections for institution identities and victim identities

Regulation-making powers (s. 335) Adds extensive new regulation-making authority covering: which account capabilities require consent, how consent is obtained, prescribed limits, prescribed criteria for fraud policies, and reporting requirements

Coming into force (s. 336) Fixed by order of the Governor in Council — no set date

PLAIN LANGUAGE SUMMARY

Division 16 requires banks to give you tools to protect yourself from fraud — the ability to cap your own withdrawal limits, get instant alerts when account settings change, and have your fraud claim assessed against written criteria. Banks must train staff, build fraud detection policies and report annually to the regulator.

The protections are real. But three things to note: the specific account capabilities that require your consent are defined by regulation — Cabinet decides what's covered. The limits you can set are capped by whatever the bank allows. And none of this takes effect until Cabinet sets the date.

DIVISION 17 Supporting Federal Credit Union Growth Canada Deposit Insurance Corporation Act · Bank Act · Financial Consumer Agency of Canada Act — ss. 337–352

WHAT THE BILL SAYS

Division 17 builds out the legal framework for federal credit unions to grow by absorbing provincial credit unions — through continuation, amalgamation or asset purchase — and ensures deposit insurance and consumer protections follow those transactions.

Deposit insurance continuity (ss. 337–342, CDIC Act)

  • Pre-existing deposits held at a provincial credit union that converts to or is absorbed by a federal credit union remain insured during a transition period — up to the amount that would have been covered under provincial law
  • Fixed-term deposits are protected until maturity; all other deposits for 180 days after the transaction
  • Absorbed deposits are treated as separate from new deposits for insurance calculation purposes during the transition
  • Amalgamation insurance rules extended to asset purchase transactions

Transitional compliance relief (s. 344, Bank Act) When a provincial credit union is continued as a federal credit union, the Minister may exempt it from one or more consumer protection provisions in Part XII.2 for up to three years — if the credit union has an approved plan to reach compliance within that period; the Governor in Council may make regulations limiting which provisions can be exempted

Simplified amalgamation (s. 345, Bank Act) A federal credit union may absorb one or more provincial credit unions without the full amalgamation process if the acquired assets are 25% or less of the federal credit union's assets — subject to director approval, member disclosure, and a member veto right triggered by as few as two eligible members

Asset purchase framework (ss. 347–350, Bank Act) A new formal process for federal credit unions to acquire all or substantially all assets of a provincial credit union — including: mandatory assumption of liabilities, Superintendent review, Minister approval within 45 days (extendable by 45), member approval requirements, and transitional relief options

Motor vehicle leasing grandfathering (s. 348, Bank Act) Federal credit unions that were previously provincial credit unions engaged in motor vehicle leasing may continue that activity with Minister approval — including post-amalgamation entities

Consumer protection coverage (s. 351, FCAC Act) Ministerially approved compliance plans under the transitional relief provisions are added to the definition of "consumer provision" — bringing them under FCAC oversight

Coming into force (s. 352) Most provisions come into force by order of the Governor in Council — no fixed date; several provisions (ss. 337, 339(1), 340, 343, 344, 348, 349, 351) come into force immediately on Royal Assent

PLAIN LANGUAGE SUMMARY

Division 17 builds the highway for provincial credit unions to merge into the federal credit union system — and makes sure your deposits don't fall through the cracks when they do. If your local credit union gets absorbed by a federal one, your existing deposits stay insured under the rules you had before, for up to 180 days or until maturity.

The growth tools are significant: simplified amalgamation for smaller deals, a new asset purchase route, and up to three years of consumer protection exemptions for newly converted credit unions — with the Minister holding approval authority at every major step.

The Governor in Council controls when most of this takes effect.

DIVISION 18 Special Economic Measures Act Special Economic Measures Act · Proceeds of Crime (Money Laundering) and Terrorist Financing Act — ss. 353–362

WHAT THE BILL SAYS

Division 18 restructures the Special Economic Measures Act (SEMA) into two parts and adds a new financial institution-specific sanctions enforcement regime:

Restructuring SEMA (ss. 353, 355, 357)

  • The existing Act becomes Part 1 — measures against foreign states
  • A new Part 2 is added — obligations specific to federal financial institutions
  • References throughout the Act updated from "this Act" to "this Part" accordingly
  • The Minister of Foreign Affairs retains responsibility for Part 1; the Minister of Finance is responsible for Part 2

Consultation requirement before sanctioning financial entities (s. 354) Before any sanctions order names a global systemically important bank, a foreign bank operating in Canada, a foreign payment service provider active in Canada, a foreign central bank, or a foreign stock exchange or clearing system — the Minister of Finance must be consulted

New Part 2 — financial institution obligations (s. 356)

Information reporting (s. 14): On the Finance Minister's recommendation (after consulting Foreign Affairs), the Governor in Council may require federal financial institutions to report: foreign sanctioned property in their possession or control, and profits realized from that property

Direction to pay profits to the Crown (s. 15): The Minister of Finance may order a named federal financial institution to pay profits realized from sanctioned foreign property directly to the Receiver General — the amount becomes a debt to the Crown recoverable in court; the order is not subject to the Statutory Instruments Act

Information sharing network (s. 17): The Minister of Foreign Affairs, the Superintendent of Financial Institutions and the Director of CSIS may assist the Finance Minister and share information with each other for purposes of administering Part 2

Disclosure to RCMP and FINTRAC (s. 18): The Finance Minister may disclose relevant information to the RCMP or FINTRAC

RCMP disclosure to Finance Minister (s. 19): At the Finance Minister's request, the RCMP Commissioner may disclose to the Finance Minister information received from financial institutions under Part 1 sanctions orders

Transitional provision (s. 358) Part 2 regulations or orders may apply retroactively to profits already realized — but only if those profits came from property owned or controlled by Russia under the existing Special Economic Measures (Russia) Regulations

Consequential amendments to PCMLTFA (ss. 359–362)

  • Updates the definition of "sanctions evasion offence" to reference Part 1 of SEMA specifically
  • Updates FINTRAC reporting and disclosure obligations to align with the new Part 1/Part 2 structure
  • Adds a new s. 53.7 requiring FINTRAC to disclose information to the Finance Minister on request for Part 2 purposes

PLAIN LANGUAGE SUMMARY

Division 18 creates a dedicated sanctions enforcement track aimed squarely at banks and financial institutions. Under the existing SEMA, sanctions orders freeze assets and restrict transactions. Under the new Part 2, the Finance Minister can go further — ordering a Canadian bank to hand over profits it made from holding sanctioned foreign property, with that amount becoming a debt to the Crown.

Before sanctioning a global bank, foreign central bank or financial market infrastructure, the Finance Minister must be consulted — a procedural brake on Foreign Affairs acting unilaterally against systemically important entities.

The information sharing web is wide: OSFI, CSIS, RCMP, FINTRAC and the Finance Minister can all share data with each other for Part 2 purposes. No independent oversight mechanism is specified.

The retroactivity provision is narrow but notable: Part 2 can reach back to capture profits already made — but only from Russian-linked property under existing regulations.

DIVISION 19 Basic Pension and Accommodation and Meals Charge Pension Act · Royal Canadian Mounted Police Superannuation Act · Department of Veterans Affairs Act · Veterans Health Care Regulations — ss. 363–375

WHAT THE BILL SAYS

Division 19 makes retroactive and prospective changes to how basic pensions for veterans and RCMP members are calculated, adjusted and defined — and clarifies how "province" is defined for veterans health care benefit calculations.

Pension Act — retroactive basic pension correction (ss. 363–370)

  • Defines a "covered period" of April 1, 1985 to December 31, 2026
  • Deems the basic pension payable on specific dates during the covered period to have been the amounts set out in a new Schedule IV — retroactively correcting the pension record back to 1985
  • All amounts tied to the basic pension — anything adjusted at the same times or calculated on its basis — are deemed to have been recalculated accordingly for the entire covered period
  • These deemed amounts prevail over any conflicting provision in any Act or regulation
  • Beginning January 1, 2027, the basic pension is adjusted annually to the greater of two amounts — one tied to CPI, one tied to wages of unskilled federal public servants in the lowest-tax province — with the formula set by regulation
  • Territories (Yukon, NWT, Nunavut) are excluded from the "province" definition for wage comparison purposes — and deemed never to have been included
  • The Governor in Council may make regulations to add January 1, 2026 to Schedule IV and vary any basic pension amount set out in it — with retroactive effect

RCMP Superannuation Act (ss. 371–371.2)

  • Beginning January 1, 2027, RCMP disability awards and pension continuation benefits are adjusted annually based on the Consumer Price Index only
  • Regulations governing this adjustment may have retroactive effect

Department of Veterans Affairs Act and Veterans Health Care Regulations (ss. 372–374)

  • The Governor in Council may define "province" for purposes of the Veterans Health Care Regulations — with retroactive effect
  • For the period April 1, 1993 to July 15, 1998, "province" in specific accommodation and meals charge provisions is deemed to have referred only to the ten provinces — excluding territories
  • Section 374 is deemed to have come into force on July 15, 1998 — fully retroactive

Coming into force (s. 375)

  • Pension Act amendments (ss. 363–370) come into force on the later of January 2, 2026 or Royal Assent
  • Veterans Health Care Regulations amendment (s. 374) is deemed to have come into force July 15, 1998

PLAIN LANGUAGE SUMMARY

Division 19 reaches back to 1985 to retroactively correct how basic veterans' pensions were calculated — locking in a new Schedule IV as the authoritative record of what the pension should have been on specific dates going back four decades. Everything tied to that pension number gets recalculated too, and these deemed amounts override anything else in law.

Going forward from 2027, veterans' pensions and RCMP disability benefits are indexed differently — veterans' pensions to the greater of CPI or a wage benchmark, RCMP benefits to CPI only.

The territories are quietly excluded from the wage comparison formula — deemed never to have been included — which affects which province sets the benchmark rate.

Two retroactivity flags: the basic pension correction goes back to 1985, and the veterans health care "province" definition is deemed to have been in force since July 15, 1998. Both rewrite the legal record without requiring anyone to reopen individual files.

⚠️ No independent audit mechanism exists to verify whether veterans received what they were owed — and the Governor in Council can vary the pension amounts again by regulation alone, with retroactive effect, at any time.