How we can help you successfully complete your registration:
Your external compliance team: We are responsible for the entire FINTRAC MSB registration process, ensuring compliance with Canada's Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, and submitting a fully compliant application.
Full support: We offer a one-stop registration solution, including legal advice, document preparation, AML/KYC policy development, audit arrangements and ongoing compliance support.
Professional and efficient: Our extensive experience ensures a smooth and efficient registration process. We can also assist you in opening a bank account or acquiring an existing MSB entity in Canada if needed.
Ready to register your Canadian MSB? Contact us today to start your registration journey!
MSB can carry out business activities
Foreign Exchange: Exchange services for different currencies.
Issuing or Cashing Bills of Exchange: Authorized MSBs can issue or cash payment instruments such as bills of exchange, checks, etc. to support a variety of domestic and international transactions.
Funds Transfer: MSB can provide funds transfer services to customers as an intermediary for the safe flow of funds.
Digital payment processing: MSB can act as a digital payment processor, providing secure and fast payment transactions, connecting individuals, businesses and banks.
Remittance: MSB specializes in money transfer business and provides fast and efficient service for international money transfer.
Virtual Currency Trading: MSB can provide trading services involving cryptocurrencies and virtual assets, whether through trading platforms or other financial service providers.
Who regulates the Canadian MSB?
MSBs in Canada are regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). In addition, if MSBs offer retail payment services, they are also required to register with a Canadian bank under the Retail Payment Activities Act (RPAA). The dual regulatory system of FINTRAC and Canadian banks ensures MSB compliance and the safety of customer funds.
Why choose to register an MSB in Canada?
Low cost: The Canadian MSB registration process is simple, the application fee is low, and no deposit or monthly maintenance fee is required.
No local staff required: Canada's MSB permit has simple personnel requirements, with only one director and a compliance officer appointed and no requirement to reside in Canada.
No minimum capital requirement: There is no minimum capital requirement, allowing self-funded businesses to operate with minimal start-up costs.
Enhance trust: Canada's strong MSB regulatory framework provides a trusted environment for the financial services industry, attracting global investors and enhancing customer confidence.
Market acceptance: In Canada, MSB registration has become a standard for many financial service providers, especially digital currency exchanges and payment platforms.
Broad range of services: MSBs in Canada can provide a variety of services, including foreign exchange, fund transfers, bill of exchange issuance and payment, virtual currency transactions, and payment services.
Difference between MSB and fMSB
There are two types of registrations in Canada: MSB (Money Service Business) and fMSB (Foreign Money Service Business). Here are the main differences:
MSB: Have a physical office in Canada, operate as a locally incorporated corporation (corporation or limited liability company), and provide services to Canadian residents. MSBs are regulated directly by the FINTRAC and must comply with Canada's AML/KYC compliance standards.
fMSB is a non-Canadian entity that provides services to Canadian residents. fMSB is not required to set up a company in Canada, but must be registered in FINTRAC and comply with Canadian regulatory requirements. In addition, fMSBs are often subject to more rigorous scrutiny to ensure compliance with Canadian compliance and reporting standards.
Not sure which registration is right for your business? Contact us for professional guidance.
Incorporation: Incorporation of a company (corporation or limited liability company) in Canada or operating as a foreign entity (fMSB).
Office address and agent: If you set up a Canadian company, you need a local office address and registered agent. We provide these services to ensure that all official correspondence is forwarded to you in a timely manner.
Personnel Requirements: Designate a qualified director and a compliance officer (who does not need to be a Canadian citizen or reside in Canada). The Compliance Officer must have a thorough understanding of Canadian AML/KYC regulations and be familiar with FINTRAC requirements.
Corporate Bank Account: A commercial bank account is required to conduct MSB business in Canada. We provide account opening guidance, including building relationships with crypto-friendly banks.
AML/KYC: Develop AML and KYC policies that comply with Canadian regulations.
Business Plan: Submit a detailed business plan describing your MSB services and activities in Canada.
Compliance: When MSBs have reasonable grounds to suspect that a transaction is related to money laundering or the financing of terrorist activities, they must report suspicious transactions to the FINTRAC as soon as possible.
Update: MSBs are required to renew their registration every two years after initial registration to maintain compliance.
Retail Payment Activity Act (RPAA)
From November 2024, the Retail Payments Activity Act (RPAA) requires all businesses offering payment services in Canada, including MSBs, to be registered with a Canadian bank. This regulatory update enhances the protection of consumer funds and reinforces the security of Canada's payment system.
Scope of RPAA:
MSB: An enterprise that provides services such as currency transfer, foreign exchange, virtual currency trading, etc.
Payment Service Provider (PSP): A business that initiates or processes electronic funds transfer (EFT).
Importance of RPAA compliance:
RPAA has introduced new oversight standards to protect end-user funds and ensure the integrity of Canada's payments system. Businesses that fail to register by November 15, 2024 will face heavy fines, starting from $1 million, with the possibility of business suspension.
If your business is involved in these areas, you must register with a Canadian bank while implementing strong risk management measures and ensuring the safety of client funds. Contact us to ensure you complete your RPAA registration.
Step 1: Evaluate
Expect 1-2 days We review your business plan and outline registration requirements, fees and estimated time.
Step 2: Document preparation
It is expected to take 1-2 days to collect the required documentation and develop an AML policy that meets Canadian standards.
Step 3: Compliance Audit
Expect 1 week to ensure your team meets FINTRAC compliance standards.
Step 4: Company Registration
1 week is expected to assist in setting up your Canadian entity and provide a registered office address.
Step 5: Submission and Approval
About 2-3 months
We take care of the entire submission process and stay in touch with FINTRAC until final approval.
Costs: Expenses related to company formation, AML/KYC and professional services. Please contact us for a detailed fee list.
Time: Depending on the complexity of your business and the speed of file submission, the entire process usually takes about 2-3 months. Our team will expedite the process and minimize delays.
Canada MSB Registration FAQ
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1. Does my team need to be in Canada to register an MSB?
No, your team does not need to be in Canada. You can register as an MSB in Canada, or if your business is for Canadian customers but you do not have a local office, you can choose to register as an fMSB. However, having a Canadian corporate entity increases compliance trust and streamlines the process. -
What is the difference between MSB and fMSB in Canada?
MSB has a local entity or office in Canada, or is registered as a Canadian company, while fMSB has no physical office, but can provide the same services in Canada through its foreign entities. The fMSB is still required to be registered in FINTRAC and comply with Canadian AML/KYC standards. -
3. What activities are allowed in the Canadian MSB registration?
Permitted activities include foreign exchange, international money transfers, cryptocurrency transactions, payment processing, prepaid card issuance, and currency transfers. -
4. Who regulates the MSB in Canada?
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) monitors MSBs to ensure they comply with the requirements of the Anti-Money Laundering and Counter-Terrorism Financing Act (PCMLTFA). MSBs must comply with specific AML/KYC standards and, where applicable, be registered with a Canadian bank under the RPAA. -
How long does it take to register an MSB in Canada?
The entire process typically takes about 2-3 months, depending on the type of registration, business complexity, and speed of document preparation. We will optimize each step to ensure that the registration is completed smoothly. -
6. Are there ongoing compliance requirements after registration?
Yes, Canadian MSBs must maintain AML/KYC compliance, regularly report transactions to the FINTRAC, and undergo regular audits. We provide ongoing compliance support to ensure you meet all regulatory requirements. -
7. How often does the MSB need to renew the registration?
MSBs are required to renew their registration in FINTRAC every two years after their initial registration to ensure continued compliance. -
8. Do you assist in opening corporate bank accounts for MSB operations?
Yes, we provide guidance on opening a corporate bank account, which is essential for MSBs operating in Canada. We will also help you find a suitable banking partner for cryptocurrency trading. -
9. Can I apply for an MSB licence remotely?
Yes, we will assist you remotely to complete your application, collect the required documents and submit them for you. -
What is RPAA Registration?
RPAA (Retail Payment Activity Act) registration is required for MSBs providing retail payment services in Canada, including e-wallet providers and payment processors. We can help you meet RPAA requirements and ensure compliance. -
11. Can you handle the entire registration process for Canadian MSBs?
Of course you can! From initial assessment and document preparation to submission, compliance and ongoing support, our team will manage the entire process to ensure that the entire process is as smooth as possible.
Other recommend Licenses
Registering as a money service business (MSB) in Canada gives your company access to a broad market and a stable regulatory environment, making it ideal for companies that offer money exchange, money transfer, virtual currency services, and more. With our support, you can easily handle MSB registration and compliance requirements in Canada.
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