BIS Immunities for Toronto Innovation Hub

Summary#

This order — Bank for International Settlements Privileges and Immunities Order: SOR/2024-71 — gives the Bank for International Settlements (BIS) and its Toronto office certain legal privileges and immunities in Canada. It implements an agreement signed on January 31, 2024 and was registered on April 19, 2024, which is when it took effect.

What it does#

• Incorporates by reference the Agreement between the Government of Canada and the Bank for International Settlements on opening a BIS office in Canada (the BIS Innovation Hub Toronto Centre) and gives the BIS the kinds of privileges and immunities usually given to international organizations under the Foreign Missions and International Organizations Act.
• Gives the BIS a legal personality in Canada and, while carrying out official activities,:
  • immunity from legal process for the organization and certain officials;
  • inviolability (legal protection) for the BIS premises and archives;
  • exemptions from taxes and customs duties for goods used only for official, non‑commercial functions;
  • exemption from Canadian taxation on salaries and emoluments paid to Innovation Hub officials by the BIS;
  • exemption from duties and taxes for furniture and personal effects when officials first take up their post;
  • certain immigration and repatriation privileges for accredited family members of officials.
• Confirms limits and exceptions:
  • the immunities are meant to allow officials to do their work, not for personal benefit;
  • immunity does not remove liability for traffic accidents or traffic offences to the extent noted in the Agreement;
  • Canadian citizens and permanent residents are not exempt from Canadian taxes or duties.

Who's affected#

• The Bank for International Settlements and the BIS Innovation Hub Toronto Centre (the office to be set up in Toronto).
• BIS senior officials, Board members, officials of the Toronto Centre, and experts on mission — all may receive specified immunities while doing official BIS work in Canada.
• Accredited family members of those officials, who receive limited immigration and repatriation privileges.
• The Bank of Canada was consulted and the Agreement anticipates that the Hub will start with about seven staff — roughly five seconded from the Bank of Canada and two from the BIS.
• Other groups likely to interact with the Hub include universities and private sector fintech firms, though the Order itself does not directly change rules for those organizations.

Why it matters#

• The Order makes it legally possible for the BIS to operate a small innovation office in Toronto. That office is intended to research topics such as central bank digital currencies, cybersecurity, and green finance.
• It could raise Canada’s profile in international central‑bank collaboration and make it easier for Canadian researchers and firms (for example, fintechs and universities) to work with the BIS.
• The privileges are limited and follow international practice; they do not give tax or duty relief to Canadian citizens or permanent residents and do not remove accountability in cases like traffic offences.
• The Hub is expected to be small (about seven staff) and fully funded by existing BIS resources, so the Order is not expected to impose new costs on the public.