Bank for International Settlements Privileges and Immunities Order: SOR/2024-71
Canada Gazette, Part II, Volume 158, Number 10
Registration
SOR/2024-71 April 19, 2024
FOREIGN MISSIONS AND INTERNATIONAL ORGANIZATIONS ACT
P.C. 2024-396 April 19, 2024
Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs and the Minister of Finance, makes the annexed Bank for International Settlements Privileges and Immunities Order under section 5footnote a and subsection 13(1)footnote b of the Foreign Missions and International Organizations Act footnote c.
Bank for International Settlements Privileges and Immunities Order
Definitions
Definitions
1 (1) The following definitions apply in this Order.
- Agreement
- means the Agreement between the Government of Canada and the Bank for International Settlements on the Establishment of an Office of the Bank in Canada for the Operation of the BIS Innovation Hub Toronto Centre, done at Ottawa on January 31, 2024. (Accord)
- Centre
- has the same meaning asssigned by the definition BISIH Toronto Centre in sub-paragraph (b) of Article 1 of the Agreement. (Centre)
- Convention
- means the Convention on the Privileges and Immunities of the United Nations set out in Schedule III to the Foreign Missions and International Organizations Act. (Convention)
- official activities
- has the same meaning assigned by the definition Official Activities in sub-paragraph (j) of Article 1 of the Agreement. (activités officielles)
- Organization
- has the same meaning assigned by the definition BIS in sub-paragraph (a) of Article 1 of the Agreement. (Organisation)
Privileges and Immunities
Legal capacities, privileges and immunities
2 The Organization has in Canada, while carrying out its official activities, the legal capacities of a body corporate and, to the extent specified in Articles 2 and 4 to 10 of the Agreement, the privileges and immunities set out in Articles II and III of the Convention.
Members and representatives
3 (1) Members of the Organization’s Board of Directors and representatives of the central banks and monetary authorities that are members of the Organization referred to in Article 11 of the Agreement have in Canada, while carrying out official activities and to the extent specified in that Article, the privileges and immunities set out in Article IV of the Convention.
General Manager and Deputy General Manager
(2) The General Manager of the Organization and the Deputy General Manager of the Organization have in Canada, while carrying out official activities, to the extent specified in sub-paragraphs (1)(a), (c) and (d) and paragraph 2 of Article 11 of the Agreement, the privileges and immunities set out in Article V of the Convention.
Centre officials
4 Officials of the Centre referred to in paragraph (e) of Article 1 of the Agreement have in Canada, while carrying out official activities and to the extent specified in sub-paragraphs (1)(a) to (c) and (e) to (h) and paragraph 2 of Article 14 of the Agreement, the privileges and immunities set out in Article V of the Convention.
Officials of the Organization
5 Officials of the Organization referred to in sub-paragraph (d) of Article 1 of the Agreement have in Canada, while carrying out official activities and to the extent set out in subparagraphs (1)(a), (b) and (d) and paragraph 2 of Article 13 of the Agreement, the privileges and immunities set out in Article V of the Convention.
Experts
6 Experts referred to in sub-paragraph (f) of Article 1 of the Agreement that perform missions for the Organization have in Canada, to the extent specified in Article 15 of the Agreement, the privileges and immunities set out in Article VI of the Convention.
Not for personal benefit
7 The privileges and immunities described in sections 2 to 6 are not granted for the personal benefit of the member, representative, manager, official or expert, as the case may be, but rather are granted so that they may independently carry out official activities in connection with the Organization and in the interests of the Organization.
Traffic accident or offence
8 For greater certainty, nothing in this Order exempts any person who has been conferred immunity by this Order from liability arising from a traffic accident or a traffic offence imposed by any law in Canada to the extent specified in Article 17 of the Agreement.
Taxes or duties
9 This Order does not exempt a Canadian citizen or permanent resident from liability for any taxes or duties imposed by any law in Canada.
Coming into Force
Registration
10 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
The Agreement between the Government of Canada and the Bank for International Settlements on the Establishment of an Office of the Bank in Canada for the Operation of the BIS Innovation Hub in Toronto Centre, done at Ottawa on 31 January, 2024 (the Agreement), requires an order (the Order) under the Foreign Missions and International Organizations Act (FMIOA). This order provides privileges and immunities (P&I) to the Bank for International Settlements (the BIS), its officials, directors, and experts. The Agreement will be incorporated by reference into the Order.
Background
Since 2019, the BIS has established innovation hubs worldwide, including in Paris, Frankfurt, and Singapore. In 2020, Canada was chosen to establish an Innovation Hub in Toronto, given the city’s proximity to Canada’s largest banks, the region’s strong fintech ecosystem, and access to top universities. The Bank for International Settlements Innovation Hub in Toronto (the Innovation Hub) is expected to have approximately seven staff from the outset, of which five would be seconded from the Bank of Canada and two from the BIS.
The establishment of the Innovation Hub will allow for research into areas such as central bank digital currencies, cybersecurity, and green finance. Specific projects will be determined jointly between the Bank of Canada and the BIS. The Innovation Hub is expected to engage with universities, and private sector entities such as fintech firms.
As a condition for establishing the Innovation Hub, the BIS requested that the Government of Canada provide P&I typically granted to international organizations with a presence in Canada. The Government of Canada currently provides the BIS with limited P&I through the Bank for International Settlements (Immunity) Act (the BIS Act). However, the BIS Act does not cover the full scope of P&I requested by the BIS to establish the Innovation Hub. The existing P&I provided under the BIS Act were intended to be limited, given that the BIS had no physical presence in Canada.
In January 2024, the Government of Canada signed the Agreement with the BIS, providing P&I within the parameters of the negotiating mandate authorized by the Prime Minister in March 2022.
An order under Canadian law is required to give effect to the Agreement and ensure the P&I provided under the FMIOA are consistent with those provided to other international organizations with a presence in Canada.
Objective
The Order aims to implement the P&I set out in the Agreement. In particular, the Order aims to
- ensure that BIS officials, directors, and experts are provided with P&I under Canadian law as per the Agreement; and
- incorporate the signed Agreement into domestic law by reference.
Description
In line with the current domestic practice applicable to an international organization in Canada, the Order would incorporate by reference the P&I provided to the BIS under the Agreement and provide certainty for the Government of Canada and the BIS with respect to the applicable P&I to which the BIS is entitled.
The P&I provided to the BIS under the FMIOA would include
- immunity from legal process for the BIS and its officials;
- inviolability of premises and archives of the BIS;
- exemption from tax and customs duties for goods used solely for the official, non-commercial functions of the BIS;
- exemption from taxation on the salaries and emoluments paid to Innovation Hub officials by the BIS;
- for officials of the Innovation Hub, exemption from duties and taxes for their furniture and personal effects at the time of first taking up their post in Canada; and
- P&I for the accredited family members of officials of the Innovation Hub, which would include
- (a) immunity from immigration restrictions and alien registration; and
- (b) the same repatriation facilities in times of international crisis as diplomatic envoys.
Duty and tax relief is not provided to Canadian citizens or permanent residents of Canada.
Regulatory development
Consultation
No public consultation or prepublication was required because the Order aligns with Canada’s obligations under the Agreement, a legally binding treaty. As the Order would affect certain duty and tax relief privileges, it must be made on the joint recommendation of the Minister of Foreign Affairs and the Minister of Finance.
The Bank of Canada was consulted and would view the Order favourably.
The Order is not expected to have an impact on additional stakeholders and, therefore, no further consultations were necessary.
Official languages
The Order has no implications pertaining to the Official Languages Act (OLA). The Order will be equally authentic in the English and French languages. Separately, the BIS will govern the Innovation Hub and is not subject to the OLA.
Modern treaty obligations and Indigenous engagement and consultation
The Order has not been the subject of public consultations on this point as assessment of the geographic scope and subject matter of the initiative did not identify any modern treaty obligations. Given the subject matter of the Order, no rationale for Indigenous engagement or duty to consult requirements were identified.
Instrument choice
The Order is made pursuant to section 5 of the FMIOA, which is the only instrument that is available to grant P&I to international organizations such as the BIS.
Regulatory analysis
Benefits and costs
Hosting an Innovation Hub will contribute to Canada’s global reputation. The Innovation Hub would be the only innovation hub in North America, joining a global network of six other hubs. The research will focus on Central Bank digital currencies, green finance, and cyber security, and on developing standards and products for green finance, which would support the transition to a green economy in line with existing Government of Canada’s priorities.
There are no direct costs associated with the Innovation Hub as it would be fully funded through existing resources.
Small business lens
Analysis under the small business lens concluded that the Order will not impact Canadian small businesses.
One-for-one rule
The one-for-one rule does not apply, as there is no incremental change in administrative burden on businesses.
Regulatory cooperation and alignment
The Order aligns with Canada’s obligations under the Agreement signed on January 31, 2024. The P&I set out in the Agreement align with the P&I set out in the Convention on the Privileges and Immunities of the United Nations incorporated under the FMIOA.
Strategic environmental assessment
The P&I would not result in any direct environmental impacts, including Canada’s emissions targets. The Innovation Hub’s activities will be digitally focused, and the expected footprint of the office would be small, with office space for approximately seven full-time members.
Gender-based analysis plus
Gender-based analysis plus (GBA+) impacts have been considered in relation to the making of the Order and no differential impacts have been identified. From an operational perspective, gender balance, particularly at the managerial levels, is a key priority for the BIS. The BIS has set a 50/50 gender target to fill vacancies for line managers and senior professionals.
Implementation, compliance and enforcement, and service standards
The Order comes into force on the day on which it is registered.
Contacts
James Johnson
Senior Legal Officer
Department of Foreign Affairs, Trade and Development
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 613‑415‑8212
Email: james.johnson@international.gc.ca
Rochelle Burke
Legal Officer
Department of Foreign Affairs, Trade and Development
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343‑203‑4466
Email: rochelle.burke@international.gc.ca