Register a company in the United Kingdom and get a Payoneer account in just 3 days!
Acquiring a Canadian Money Services Business License
In Canada, financial businesses are required to comply with specific regulations to help prevent money laundering and terrorist financing. These regulations are outlined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Money Service Businesses (MSBs)
MSBs are businesses that provide certain financial services domestically. These services include:
- Currency exchange;
- Funds transfers;
- Issuing and redeeming money orders or traveler’s checks;
- Providing virtual currency services.
To be considered an MSB, a business must meet at least one of the following criteria:
- Provide one or more MSB services;
- Have a Canadian physical presence;
- Advertise MSB services;
- Engage in certain types of transactions exceeding specific thresholds.
Foreign Money Service Businesses (FMSBs)
FMSBs are non-bank financial institutions that provide financial services from outside of Canada. They are subject to PCMLTFA obligations if they provide services to Canadian individuals or entities.
Compliance Requirements
Both MSBs and FMSBs must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and comply with the following requirements:
- Develop and implement anti-money laundering/counter-terrorist financing (AML/CTF) policies and procedures;
- Conduct customer due diligence;
- Report suspicious transactions to FINTRAC;
- Maintain adequate records.
Legislation and Regulation
The PCMLTFA and FINTRAC are Canada’s primary regulatory bodies governing AML/CTF compliance. These regulations are designed to prevent using the financial system to facilitate criminal activities.
Canadian financial businesses must be aware of their obligations under the PCMLTFA and take steps to ensure compliance. Failure to do so can result in significant penalties.
International Fintech Business (IFB) can assist with your MSB license registration in Canada. We can help you navigate the complex regulatory landscape, ensuring compliance with FINTRAC’s requirements. IFB’s experts can guide you through the application process, assist with documentation, and offer ongoing support to maintain your license. With our expertise, you can streamline registration and confidently establish your money services business in Canada. Contact us today!
