Entity Associated with a Foreign Bank Regulations

The Entity Associated with a Foreign Bank Regulations came into effect on October 4, 2001, under the Bank Act, as enacted by section 132 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001. The regulations aim to clarify the concept of "associated with a foreign bank" and provide exemptions for certain entities from this status.

The Regulations define the term "Act" as the Bank Act and list exemptions for various classes of entities associated with foreign banks. These exemptions include:

• Entities that are governments or political subdivisions of foreign countries, but do not engage in financial services activities in Canada.


• Controlled entities by foreign governments that do not engage in financial services activities in Canada.


• Entities that control a foreign bank only because they have an association with it.


• Canadian entities that acquire control of a foreign bank without engaging in financial services activities.

The Regulations also provide for ministerial deemed status, allowing the Minister to deem certain entities not associated with foreign banks. The Regulations came into force on October 4, 2001, and are effective until further notice.