CANADIAN PAYMENTS ASSOCIATION ASSOCIATION CANADIENNE DES PAIEMENTS RULE G12



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CANADIAN PAYMENTS ASSOCIATION ASSOCIATION CANADIENNE DES PAIEMENTS RULE G12 PROCEDURES FOR PUBLIC WORKS AND GOVERNMENT SERVICES CANADA (PWGSC) DIRECT DEPOSIT PAYMENT ITEMS 2012 CANADIAN PAYMENTS ASSOCIATION 2012 ASSOCIATION CANADIENNE DES PAIEMENTS This Rule is copyrighted by the Canadian Payments Association. All rights reserved, including the right of reproduction in whole or in part, without express written permission by the Canadian Payments Association.

- Procedures for Public Works and Government Services Canada (PWGSC) Direct Deposit Payment Items Implementation and Revisions Implemented March 1984 Amendments Pre-November 2003 June 1984, September 18, 1986, January 28, 1987, March 4, 1987, April 12, 1989, June 14, 1991, November 18, 1993, January 22, 1996, March 25, 1996, May 23, 1996, April 7, 1997, July 14, 1997, December 1, 1997, June 18, 1998, December 7, 1998, February 1, 1999, February 4, 1999, October 7, 1999, October 5, 2000, March 22, 2001 and April 23, 2001. Amendments Post-November 2003 1. Amendments to update rule and to accommodate the elimination of Returned Item Vouchers, approved by the Board October 11, 2007, effective October 20, 2008. 2. Amendments to update the rule to accommodate the upgrade to ACSS Version 12 and the introduction of a new stream for Government Direct Deposits on the ACSS. Approved by the Board November 24, 2011, effective April 2, 2012. 3. Amendments to update the contact information for the Cheque Redemption and Control Directorate (CRCD), approved by the Board October 11, 2012, effective December 10, 2012.

Introduction - Procedures for Public Works and Government Services Canada (PWGSC) Direct Deposit Payment Items Page 1 1. This Rule outlines the operating standards and procedures between Public Works and Government Services Canada (PWGSC) and the Direct Clearers for the Direct Deposit (DD) system. Scope 2. The procedures outlined in this Rule shall allow PWGSC to exchange logical records types C and E on AFT File with Direct Clearers. Certification 3. Where a Direct Clearer undertakes to effect payments through the medium of the Direct Deposit Operating Procedures it certifies that: (a) for Direct Clearers, the payments have been made to the destination accounts with the exception of those payments classified as Rejected/Returned Transactions; and (b) for Indirect Clearers, with the exception of Rejected Transactions, the AFT Transactions have been delivered to the proper Indirect Clearers with instructions identifying the payments, the destination accounts, and the amounts. References In the event, that any such payment has not been made to the destination account, whether by the Direct Clearer or its serviced Indirect Clearer, the Returned Transaction shall be handled in accordance with sections 10, 14 and 15 of this Rule. 4. This Rule shall be read in conjunction with the F Rules and Standard 005 of the CPA Rules Manual and the CPA s List of Account Number Formats and Validation Criteria. To gain a thorough understanding of these procedures, shall not be read in isolation. Enrollment and Verification 5. The recipients of Receiver General for Canada payments may elect to participate by completing, as prescribed by the Receiver General, standard enrollment authorization forms providing the details of their accounts. For those recipients utilizing chequing-type accounts, a voided cheque may be attached to the enrollment form. Alternatively, the Financial Institutions shall, when presented with a completed enrollment form, verify the account data section, which includes the following minimum data elements: (a) financial institution name and address; (b) name of account holder; (c) direct deposit routing number (institution and branch number), and; (d) account number.

- Procedures for Public Works and Government Services Canada (PWGSC) Direct Deposit Payment Items PWGSC Delivery Procedures Page 2 6. (a) PWGSC shall deliver AFT Transactions and the Summary of Data Delivered (Appendix II) to the Direct Clearers at the registered AFT Exchange Point designated by the Processing Direct Clearer. (b) In order to facilitate the exchange of AFT Files between PWGSC and Direct Clearers, the Bank of Canada shall register its offices in accordance with Appendix I of Rule F2 and ensure the necessary offices appear on the Financial Institution File (FIF). Frequency of Exchange 7. PWGSC AFT files shall be exchanged prior to 08:15 and 16:30 hours E.T. Lead Time 8. AFT Transactions shall be delivered to Direct Clearers at least one business and no more than four business days prior to the date funds are to be made available. Unpostable Transactions, Re-routed Items, Correction of Branch Account Information, Returned Transactions 9. AFT Credit Transactions that are accepted in the AFT Initial File Edit by the Processing Direct Clearer and subsequently unposted, shall not be held by the branch of account, but shall be rerouted or returned according to one of the following procedures: (a) (i) (ii) (iii) Where the account type or account number has been changed or the account has been transferred to another branch of the same financial institution, that institution may elect to re-route the transaction accordingly; Where a financial institution undertakes the re-routing of a Credit Transaction, any ensuing liability from the re-routing shall be borne by that financial institution; Where a financial institution has elected to re-route a Credit Transaction and wishes to advise the Payment Originator of corrections to Branch account information, the rerouting Institution shall create a NOC, in accordance with Rule F12. (b) Where a financial institution undertakes to return an unposted transaction it shall do so in accordance with the Institutional ID Number for Returns pursuant to CPA Standard 005. Delivery of Returned and Rejected Transactions 10. Direct Clearers, in accordance with the F Rules and Standard 005 of the CPA Rules Manual, shall deliver to PWGSC, AFT Files containing rejects and returns at the AFT Exchange Point. These shall be accompanied by a Summary of Data Delivered. Procedures for Direct Clearer Replacement AFT File 11. Each Direct Clearer shall be prepared to re-create and re-submit a Reject/Return file upon request of PWGSC, provided that such a request is made within 3 business days of the AFT File exchange of the original Reject/Return file.

- Procedures for Public Works and Government Services Canada (PWGSC) Direct Deposit Payment Items Page 3 12. In the event that an AFT File is received unreadable by PWGSC, PWGSC shall advise the Processing Direct Clearer. The following points outline the procedures and responsibilities of each party in this instance: (a) If a replacement AFT File is required, PWGSC shall advise the AFT National Point of Contact for the Processing Direct Clearer within 21 business days of the original AFT File exchange. (b) The Processing Direct Clearer shall request a replacement AFT File and Summary of Data Delivered from the PWGSC issuing office. (c) PWGSC shall be prepared to re-create and re-submit an AFT File and Summary of Data Delivered to a Direct Clearer upon request. (d) PWGSC shall use the original file creation number and file creation date on all replacement AFT Files to prevent accidental re-processing of the AFT File by the Processing Direct Clearer. Further, the AFT File shall be clearly labelled as being a replacement AFT File. Timing of Redemption 13. (a) Subject to subsection 11(b), redemption is to be on due date. (b) For AFT Transactions exchanged on or after due date redemption shall be effected, if possible, on the date of exchange. When circumstances prevent redemption on the date of exchange, redemption shall be effected on the next business day. [Note: For interest claim calculations, refer to Memorandum of Understanding Between the Government of Canada and Direct Clearers on Arrangements for Certain Banking Transactions ]. Transactions Originated by PWGSC, ACSS Entries, Payment for Government AFT Credit Transactions and Adjustments 14. (a) The Direct Clearers shall complete Government of Canada form PWGSC-TPSGC 5378 (see Appendix II). This form contains the due date, the originating data centre number, the file creation number, volume and the value of each file. (b) Using the totals indicated in form PWGSC-TPSGC 5378, the Direct Clearers shall as soon as possible but no later than 09:30 hours (Ottawa Time) initiate, using Stream identifier M in the National Electronic Settlement Region, entries into the ACSS against the Bank of Canada for the volume and value of AFT Credit Transactions received from PWGSC for redemption. (c) The PWGSC-TPSGC 5378 shall be sent via fax or email to the PWGSC CRCD (see contact information in Appendix I) as soon as possible, but not later than 09:30 hours (Ottawa time). (d) Each Direct Clearer will provide to the Bank of Canada standing payment instructions for claims based on Stream M entries. Direct Clearers shall be responsible for notifying the Bank of Canada of any changes to their standing payment instructions. (e) By 11:30 hours (Ottawa Time), on the same day, the Bank of Canada shall initiate LVTS Payment Messages in favour of each Processing Direct Clearer that has made entries into the ACSS for the value of Government of Canada instruments being claimed in National Electronic Settlement Region as reflected in the Government Net Position Report. (f) Contested delivery procedures for Stream M entries shall be followed as outlined in Rule G3.

- Procedures for Public Works and Government Services Canada (PWGSC) Direct Deposit Payment Items (g) Adjustment procedures shall be followed as outlined in Rule G3. Page 4 NOTE: For instructions on the entry of instruments on manually prepared Government Items Clearing Logs, refer to Rule G9. Transactions Originated by Direct Clearers - Rejects and Returns, Bank of Canada Rejects and Payment for Returns, Adjustments 15. (a) The Processing Direct Clearer shall complete form PWGSC-TPSGC 5379 (Appendix IV) by indicating the combined volume and value of Rejected and Returned AFT Transactions for refund that day. The form shall also contain the following information: (i) (ii) (iii) Originating Direct Clearer Data Centre number; File Creation Numbers, and; Number and value of each items for each file creation number for refund that day. (b) Direct Clearers shall send the form PWGSC-TPSGC 5379 by fax or email to the Bank of Canada in Ottawa as soon as possible and PWGSC CRCD (see Appendix I for contact information), but no later than 15:00 hours (Ottawa time). (c) By 15:00 hours Ottawa time on the same day, the Processing Direct Clearer shall initiate an LVTS Payment Message in favour of the Bank of Canada, for the total value of AFT Rejected and Returned Transactions presented on Form PWGSC-TPGSC 5379. The Processing Direct Clearer shall complete the S.W.I.F.T. Payment (MT205) mandatory fields, as well as, field 20, indicating DD RET. (d) Adjustment procedures shall be followed as outlined in Rule G3. 16. Formal contacts as provided in the AFT Main Contact List shall be established between PWGSC and Direct Clearers to accommodate such items as: (a) Payment Recalls; (b) Trace Requests; (c) Returns; and (d) AFT File related/acss enquiries. Authority to Amend 17. No amendment to this Rule shall be made except as authorized by the CPA, subsequent to consultation with Public Works and Government Services Canada.

Appendix I Government Direct Deposit Claims Contact CONTACT INFORMATION Cheque Redemption and Control Directorate PWGSC/TPSGC Form 5378 Attn: Payment Reconciliation Sector Subject: PWGSC/TPSGC Form 5378 Fax: 1-418-566-3221 matdcrcdepotdirect5378-matcrcddirectdeposit5378@tpsgc-pwgsc.gc.ca PWGSC/TPSGC Form 5379 Cheque Redemption and Control Directorate Attn: Accounting Controls Sector Subject: PWGSC/TPSGC Form 5379 Fax: 1-418-562-1778 matdcrcdepotdirect5378-matcrcddirectdeposit5378@tpsgc-pwgsc.gc.ca Bank of Canada Attn: Payment and Settlement Operation Subject: PWGSC/TPSGC Form 5379 Email: pso-payment@bankofcanada.ca Fax: 1-800-353-3937

Procedures for DSS Direct Deposit Payment Items Summary of Data Delivered Appendix II

Appendix III Page 1 Direct Deposit - Detail of Redemption Value, Form PWGSC-TPSGC 5378 Instructions for Completion Direct Deposit Detail of Redemption Value Form PWGSC-TPSGC 5378 1. The purpose of the Direct Deposit-Detail of Redemption Value form PWGSC-TPSGC 5378 is to provide a detailed breakdown and cross reference information for the redemption value of the processed AFT Files for Direct Deposit. Cross reference information for the AFT Files shall include: due date, originator s identification number, file creation number, volume and the value of each AFT File. Completion of Form PWGSC-TPSGC 5378 for Processed File(s) 2. Form PWGSC-TPSGC 5378 shall be completed in the following manner: (a) Financial Institution Name and Address: The name and address of the financial institution which is claiming the redemption value of the processed AFT File. (b) Redemption Date: The date form PWGSC-TPSGC 5378 is being presented to the Bank of Canada for redemption. (c) Processed AFT File Information: Due date - The date on which value was deposited to the destination accounts. Originator s Identification - The ten-digit identification number as utilized by the PWGSC Data Centre which created the AFT File. This number appears in Logical Record Type A, Data Element Number 03, of the AFT File. File Creation No. - The four-digit file creation number assigned to the AFT File by the originating PWGSC Data Centre. Value - The value of each processed AFT File. Volume - The number of items contained in the AFT file. Total Value - The total value of processed AFT Files listed on form PWGSC-TPSGC 5378. (d) Signature, Date, and Telephone Number: The individual completing the form, the date on which it was completed, and the telephone number for further contact.

Appendix III Page 2 Direct Deposit - Detail of Redemption Value, Form PWGSC-TPSGC 5378 Instructions for Completion (Cont d) Distribution of Form PWGSC-TPSGC 5378 3. Two copies of form PWGSC-TPSGC 5378 shall be completed and distributed as follows: Copy 1 - The original form PWGSC-TPSGC 5378 shall be placed in an envelope and delivered to the CRCD in accordance with this Rule. Copy 2 - To be retained by financial institution. Supply of Form PWGSC-TPSGC 5378 4. Supplies of form PWGSC-TPSGC 5378 may be obtained, free of charge, in multiples of 100, by writing to: Public Works and Government Services Canada Material Management Division Level 03, Tower A, Phase III Place du Portage 11 Laurier Street Hull, Quebec K1A 0S5 Attention: Manager, Warehousing Supplies of this form may also be obtained by sending a fax message to the following number: Fax number: (819) 956-3172 Calls relating to the ordering or shipment of these forms may be made to the following number: Phone number: (819) 956-3165

Direct Deposit - Detail of Redemption Value Form PWGSC-TPSGC 5378 Appendix III Page 3

Direct Deposit - Detail of Refund Value (Rejects/Returns) Form PWGSC-TPSGC 5379 Instructions for Completion Appendix IV Page 1 Direct Deposit Detail of Refund Value (Rejects/Returns) Form PWGSC-TPSGC 5379 1. The purpose of the Direct Deposit - Detail of Refund Value (rejects/returns on tape) form PWGSC-TPSGC 5379 is to provide a detailed breakdown and cross reference information for the value of rejects/returns on tape for Direct Deposit. Cross reference information for the Rejects/Returns File includes: originator s identification number, file creation number, the number of items, and the value of each AFT File. Completion of Form PWGSC-TPSGC 5379 for Rejects/Returns File(s) 2. Form PWGSC-TPSGC 5379 shall be completed in the following manner: (a) Financial Institution Name and Address The name and address of the financial institution which is making a refund for the rejects/returns AFT File(s). (b) Refund Date The date form PWGSC-TPSGC 5379 is being presented to the Bank of Canada for refund. (c) Rejects/Returns AFT File Information Originator s Identification - The identification number of the Direct Clearer Data Centre which created the Reject/Return File(s). File Creation - The file creation number assigned to the Rejects/Returns File(s) by the Originating Direct Clearer. Number of Items - Value - Volume - Total - The number of items contained on this AFT File for this refund date. The value of the items contained on this AFT File for this refund date. The number of the items contained on this AFT File for this refund date. The total number of items and the total value of items contained on this AFT File for this refund date.

Direct Deposit - Detail of Refund Value (Rejects/Returns) Form PWGSC-TPSGC 5379 Instructions for Completion Appendix IV Page 2 (d) Signature, Date, and Telephone Number The individual completing the form, the date on which it was completed, and the telephone number for contact Distribution of From PWGSC-TPSGC 5379 3. Two copies of form PWGSC-TPSGC 5379 shall be completed and distributed as follows: Copy 1 - The original form PWGSC-TPSGC 5379 shall be placed in an envelope and delivered to the CRCD in accordance with this Rule. Copy 2 - To be retained by Financial Institution. Supply of Form PWGSC-TPSGC 5379 4. Supplies of form PWGSC-TPSGC 5379 may be obtained, free of charge, in multiples of 100, by writing to: Public Works and Government Services Canada Material Management Division Level 03, Tower A, Phase III Place du Portage 11 Laurier Street Hull, Quebec K1A 0S5 Attention: Manager, Warehousing Supplies of this form may also be obtained by sending a fax message to the following number: Fax number: (919) 956-3172 Calls relating to the ordering or shipment of these forms may be made to the following number: Phone number: (819) 956-3165

Direct Deposit - Detail of Refund Value Rejects/Returns) Form PWGSC-TPSGC 5379 Instructions for Completion Appendix IV Page 3 (end)