Today Fintechs Canada sent a letter to Dominic LeBlanc, the Minister of Public Safety, Democratic Institutions, and Intergovernmental Relations, expressing concerns over Bill C-65 and its application to prepaid products in Canada.
Bill C-65, An Act to Amend the Canada Elections Act, was introduced by the Liberal government on March 20, 2024. This bill aims to amend various aspects of the Canada Elections Act to make voting easier, increasing voter participation, protecting personal information, and preventing foreign interference in federal elections.
Among the proposed changes, the bill prohibits the use of prepaid products for electoral contributions. This measure is intended to address concerns surrounding the anonymity of such products and prevent foreign actors from influencing Canadian election outcomes.
In the letter, Fintechs Canada recommends that the government should not place a blanket prohibition on political contributions made through prepaid products. According to Fintechs Canada, a blanket prohibition is unnecessary due to the existing anti-money laundering (AML) and Know Your Customer (KYC) safeguards in place for issuers of open-loop prepaid cards.
“Rather than protecting the integrity of our political process, this prohibition would hinder the political participation of groups that rely on prepaid payment products as their primary financial tools, such as young, new, underbanked, and lower-income Canadians,” states the letter. It adds that this bill “may disproportionately impact underrepresented groups, restricting their ability to participate politically and thereby undermining the inclusivity and integrity of our democratic system.”
To see the letter, click here.
