Electronic Payments Regulations

The Electronic Payments Regulations, made pursuant to paragraph 10(f) of the Financial Administration Act, outline the rules and guidelines for electronic payments in Canada. These regulations apply to every payment made out of the Consolidated Revenue Fund by means of an electronic instruction for payment.

Key definitions include "electronic instruction for payment," which refers to an instruction for payment issued electronically on media or by online transfer, and "digital signature," which is the result of transforming a message using keys that allow a person to determine whether the transformation was created using the correct key and if the message has been altered. Financial institutions are defined as entities that hold deposits and honor cheques and other payment instructions.

The regulations require electronic instructions for payment to include specific information such as the amount, payment reference number, payee's name and financial institution number, and payment date. When issuing electronic instructions for payment by on-line transfer, a digital signature is required. The Receiver General is responsible for ensuring the security of the system used for transmitting electronic instructions for payment and maintaining the confidentiality, authenticity, and integrity of the data.

The regulations also outline requirements for media used to issue electronic instructions for payment, including internal labels that identify the media, and transmittal documents signed by authorized personnel. Financial institutions are required to acknowledge receipt of electronic instructions for payment and verify their integrity. The regulations further specify procedures for replacement payments in cases where a payment has not been credited to the payee's account on time.

These regulations come into force on February 23, 1998, outlining the framework for secure and reliable electronic payments in Canada.