Money laundering is big business in Canada.
In a recent report, the Criminal Intelligence Service estimated that between $45 billion and $113 billion is laundered through the country every year. As some analysts have noted, part of the reason for those big numbers is that Canada’s anti-money-laundering laws haven’t been that strong compared with other western nations. But that’s changing.
Last year, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced new anti-money laundering and anti-terrorist financing requirements. For Money Service Businesses like Telpay, these new rules mean that we have to ensure we know who our clients are. In accordance with these requirements, Telpay has been requesting personal information of primary users and signing officers, such as their date of birth and home address.
We know there are lots of questions about this. Why are we collecting this information? What are we going to do with it? What is a beneficial owner? Let’s get to some answers.
If there was any doubt about how common electronic funds transfers (EFTs) and credit cards have become for Canadian businesses, a recent Payments Canada report put it to rest. In 2020, EFTs made up 25% of total business payment value in this country, while credit cards accounted for 24%.
That credit card number in particular was unheard of just five years previous. But as that Payments Canada report suggests, there have been four key drivers of credit card usage among businesses recently: payment acceptance, rewards, perceived convenience, and easier control of payments.
Pre-Authorized Debits (PADs) can be the most efficient and cost-effective way for consumers and businesses to make certain payments such as a mortgage, utility, membership dues, and insurance.
Payments Canada recently proposed several amendments to the Pre-Authorized Debits Rule, last reviewed in 2008. With the increasing level of technological advancements and market demands of Canadians who want greater flexibility and choice of Payment Service Providers (PSPs), Payments Canada is proposing changes to the PADs Rule to meet these evolving needs.
As most accounting firms know, dealing with banks to make payments for clients can be frustrating, to say the least. But a couple of years ago, that’s exactly what InterPaid was doing — or trying to do.
When Andrew McAuley launched his Sarnia, Ontario-based bookkeeping and business management company in 2019, he had one goal in mind: to enhance the accounting setups of small, medium, and large businesses using a full range of efficient services.
Those services would come to include full-cycle accounting, payroll, remittances, accounts receivable collection, accounts payable management, business optimization, and more. And while InterPaid quickly found early success, banks placed one significant speedbump in the company’s way.
Banking on Inefficiency
That speedbump was the same one faced by many accountants today: making payments using the direct deposit features of their clients’ banks.
“This was an extremely time-consuming and difficult task as we had to have individual logins created, signing authorities depending on the bank, etcetera,” says McAuley. “Not to mention, most banks’ direct deposit payment platforms are not designed for accountants or third-party providers.”
A Message from Telpay’s CEO, Cora Jalonen
Please join us as we take a moment’s pause to reflect on our past and explore our vision as we present this Special Edition 35th Anniversary Report.
The year 2020 will certainly go down in history as a year of global challenge and unrest. But it has also been a year of care, resourcefulness, and resilience. As Canada’s trusted leader in the fintech industry for 35 years, Telpay is the longest established stronghold in electronic payments.
The year 2020 also marked the retirement year of Telpay founder, innovator, and communitarian Bill Loewen. It has been a pleasure to work with Bill throughout these past years. Bill’s career spanning over 5 decades, has influenced the financial management of the nation.