Canadian banks that refuse to identify the carbon rebate by name when doing direct deposits are forcing the government to change the law to make them do it, says Environment Minister Steven Guilbeault.

Guilbeault is taking the stand after Tuesday害羞草研究所檚 federal budget promised to amend the Financial Administration Act so government payments accepted for deposit at Canadian banks will carry whatever title the government wants.

害羞草研究所淭he fact that they haven害羞草研究所檛 been doing it now for many years led us to take this position,害羞草研究所� Guilbeault said.

His department has been battling with banks for almost two years over how carbon rebates are labelled when they are deposited directly into bank accounts.

The first rebate deposits in 2022 were labelled very generically 害羞草研究所� 害羞草研究所渇ederal payment害羞草研究所� and 害羞草研究所淓FT Canada,害羞草研究所� for example 害羞草研究所� which meant recipients had no idea why they were getting the money.

Some banks, but not all, have since amended their procedures to ensure bank statements reflect the measure害羞草研究所檚 new name: the 害羞草研究所淐anada Carbon Rebate.害羞草研究所�

TD and BMO have adopted the government害羞草研究所檚 requested 害羞草研究所淐daCarbonRebate害羞草研究所� entry, which fits the 15-character limit imposed by some banks.

However, RBC and Scotiabank were unable to make the change in time for the rollout, although both say they intend to update to the new name.

CIBC, meanwhile, is still calling it 害羞草研究所淒eposit Canada.害羞草研究所�

Guilbeault said the lack of a clear identifier isn害羞草研究所檛 the only thing fuelling confusion about carbon pricing, but is definitely part of the problem.

害羞草研究所淚 think we took it for granted that since people were receiving it, people knew they were receiving it,害羞草研究所� Guilbeault said.

害羞草研究所淲e害羞草研究所檝e come to discover over the last few months that it wasn害羞草研究所檛 the case, in part because it the way it was labelled 害羞草研究所� or mislabelled, I should say 害羞草研究所� by most financial institutions.害羞草研究所�

The government has struggled to fully explain the carbon price and the rebates since the policy began in 2019.

That has helped the Conservatives, fastidiously opposed to carbon pricing, in their unrelenting efforts to kill it off once and for all.

Changing the law wouldn害羞草研究所檛 just affect carbon rebates, but all government deposits, including child benefits, employment insurance and tax refunds.

Guilbeault rejected any suggestion the change would cost the banks money.

害羞草研究所淵ou can quote me on this: I have a really hard time believing the banks when they say that it害羞草研究所檚 going to cost them money,害羞草研究所� he said.

害羞草研究所淚 feel that, as a client, we should have the right to label this the way we feel it should be labelled and it害羞草研究所檚 not up to the banks to decide.害羞草研究所�

A spokeswoman for the Canadian Bankers Association had little to say about the proposed change.

害羞草研究所淏anks in Canada support measures that help build a strong and sustainable Canadian economy,害羞草研究所� Maggie Cheung said in a written statement.

害羞草研究所淲e will also review proposed amendments to the Financial Administration Act when they are presented, and what proposed changes to the Act would mean for banks and Canadians.害羞草研究所�

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