Record-keeping rules updated for member institutions that are subsidiaries of foreign banks or foreign entities

Plain-language summary · AI-assisted

A previously pending amendment to the deposit insurance by-law has now been brought into force, clarifying when a member institution may keep certain records outside Canada. The rule now explicitly lists two separate categories: subsidiaries of a foreign bank incorporated or formed in a country or territory referred to in Schedule IV of the Bank Act, and subsidiaries of a regulated foreign entity as defined in the Bank Act. The change breaks what was a single run-on condition into two clearly labelled paragraphs (a) and (b), making it easier to determine which institutions qualify for the overseas record-keeping exception. Member institutions that are subsidiaries of foreign banks or regulated foreign entities should review whether they fall under paragraph (a) or (b) to confirm their record-keeping obligations. Institutions that do not qualify under either paragraph must continue to store the specified records in Canada unless they obtain the Corporation's prior written consent to remove them.

Who this affects
CDIC member institutions · subsidiaries of foreign banks operating in Canada · subsidiaries of regulated foreign entities · compliance officers at deposit-taking institutions