7.1 Nature of Payment Services
Payment and financial technology services involve inherent risks. NEMOPAY’s services are subject to legal, regulatory, operational, counterparty, technology and market risks. This disclosure provides a summary of material risk and compliance factors relevant to customers of NEMOPAY.
7.2 Regulatory Risk
NEMOPAY operates under a regulatory framework that includes requirements of FINTRAC, the Bank of Canada and other applicable Canadian regulators. Regulatory requirements may change. Changes in law or regulation may affect the availability, structure, terms or cost of NEMOPAY’s services. NEMOPAY may be required to restrict, modify or discontinue certain services as a result of regulatory changes or regulatory action.
7.3 Transaction and Execution Risk
NEMOPAY processes payment instructions on the basis of the information provided by the customer. Customers are responsible for providing accurate, complete and timely payment instructions. NEMOPAY cannot guarantee that a payment once sent will be recalled or reversed. Transactions may be delayed, held or rejected due to compliance controls, sanctions screening, fraud prevention, partner requirements or other operational factors.
Processing times are estimates only. Cut-off times, bank holidays, correspondent banking delays, currency clearing times and payment-system availability may affect actual settlement timing.
7.4 Compliance Controls and Service Availability
NEMOPAY may at any time, and without prior notice where required by law or operationally necessary:
- Apply transaction limits, controls or holds.
- Request additional information or documentation.
- Delay, block or reject a transaction for AML/CTF, sanctions, fraud-prevention or risk-management purposes.
- Restrict, suspend or terminate a customer relationship.
Where disclosure is restricted by applicable law, NEMOPAY may be unable to provide the specific reason for a compliance action.
7.5 Technology and Operational Risk
NEMOPAY’s services depend on information technology systems and infrastructure, including third-party platforms and networks. System outages, cyberattacks, technology failures, software errors or disruptions to external infrastructure may cause service interruptions, delays or transaction failures. NEMOPAY maintains business continuity and incident response procedures but cannot guarantee uninterrupted service availability.
7.6 Third-Party and Counterparty Risk
Certain services offered by NEMOPAY involve independent regulated third-party providers, including banking partners, payment processors, compliance technology providers and card or settlement partners. The availability and performance of third-party services may affect NEMOPAY’s ability to deliver certain services. NEMOPAY conducts due diligence on material service providers but is not responsible for the independent actions, financial condition or regulatory status of third parties.
7.7 FX and Currency Risk
Where services involve foreign currency exchange, the exchange rate applied to a transaction may differ from the rate quoted at the time of instruction due to market fluctuations, timing, processing and applicable spreads. Currency values can change rapidly and unpredictably. NEMOPAY does not guarantee any specific exchange rate.
7.8 AML/CTF and Sanctions Controls
NEMOPAY maintains a risk-based AML/CTF compliance program. Transaction monitoring and customer screening may affect the timing and availability of services. Where NEMOPAY identifies a concern requiring investigation or reports a matter to FINTRAC or other competent authorities, it may be prohibited by law from disclosing this to the customer. NEMOPAY’s compliance controls are designed to protect the integrity of the financial system, not to disadvantage individual customers.
7.9 RPAA Operational Risk Management
As a registered PSP under the RPAA, NEMOPAY maintains a Risk Management and Incident Response Framework governing operational risk identification, mitigation, incident response and regulatory notification. Under the RPAA, NEMOPAY is required to notify the Bank of Canada of material operational incidents within the timeframes prescribed by the RPAA framework. Where required, NEMOPAY will also notify affected end users and other PSPs of incidents that may affect them, in accordance with RPAA obligations.
7.10 No Investment Advice
Nothing on NEMOPAY’s website or within its services constitutes investment, legal or tax advice. Customers are responsible for obtaining independent professional advice appropriate to their circumstances.
7.11 No Deposit Insurance
NEMOPAY is not a bank or deposit-taking institution. Funds handled by NEMOPAY in connection with payment services are not deposits and are not insured by the Canada Deposit Insurance Corporation (“CDIC”) or any equivalent deposit insurance scheme.