Banks must get consent for electronic transfers

Summary#

These are proposed changes called the Regulations Amending the Financial Consumer Protection Framework Regulations. They would make banks ask customers for explicit permission before turning on high‑value electronic transfer features, let customers turn those features off, and require banks to report fraud data to the Financial Consumer Agency of Canada so the government can better track fraud. This is a proposal (Part I); it is not law yet and the government sought comments starting June 27, 2026.

What it does#

• Requires banks to get express consent before enabling any electronic funds‑transfer capability on a personal deposit account (examples include wire transfers, global money transfers, and Interac e‑Transfers). Some routine payments, like ATM withdrawals and debit‑card payments, are excluded.
• Lets consumers disable those electronic transfer features on their accounts.
• Requires banks to activate a requested increase to a transaction limit immediately if the bank has verified the account holder’s identity, or by the next business day if it has not.
• Forces banks to have written policies and procedures for investigating suspicious transactions and for deciding when to notify customers about suspicious requests.
• Requires banks to collect and report specific fraud data (type of scheme, communication method, transaction method, amounts, whether loss was reimbursed, victim age range/gender/postal code prefix, etc.) to the Financial Consumer Agency of Canada on an annual basis.
• Requires the FCAC to compile banks’ reports and deliver a confidential annual report to the Minister of Finance by September 30 of the year after the data year.
• Requires banks to disclose at account opening which capabilities need express consent, which can be turned off, and which limits can be changed.
• Sets a proposed coming‑into‑force date of July 1, 2027, with the first required fraud report due by May 15, 2029 (covering calendar year 2028).

Who's affected#

• Consumers with personal bank accounts. People who do not use wire or international transfer features may be able to turn them off and reduce their exposure to fraud.
• Banks and authorized foreign banks (the proposal applies to federally regulated institutions under the Bank Act; the regulatory analysis estimates about 79 institutions would be affected).
• The Financial Consumer Agency of Canada, which would collect and analyze the new fraud data and report to the Minister of Finance.
• The federal Department of Finance, which will use the data to shape policy and the planned National Anti‑Fraud Strategy.
• Small businesses: the government’s analysis says the rules are not expected to affect small businesses that use personal deposit accounts; if a small business does use a personal account, effects are unclear but likely minor.

Why it matters#

• Fraud is rising. Reported losses were about $704 million in 2025, and the Canadian Anti‑Fraud Centre estimates reported cases may only represent 5 to 10% of actual fraud. Better data and stronger account controls aim to reduce actual losses.
• Practical benefit: letting people turn off high‑value transfer features makes it harder for fraudsters to move money quickly if they get into an account. The government’s analysis estimates net benefits of about $2.3 billion over 10 years (benefits $2.9 billion, costs $611 million), though those figures depend on assumptions about unreported fraud.
• Trade‑off: customers may face extra steps or short delays when enabling transfers or increasing limits. Banks and the FCAC will face implementation and ongoing reporting costs.
• This is a proposed regulation to implement earlier Bank Act amendments announced in Budget 2025 (not yet in force). If adopted, it would change what consumers can control in their accounts and give policymakers better information about how fraud happens.