What is the Canadian MSB License?

In Canada, an MSB (Money Service Business) license is a mandatory registration that grants businesses the legal authority to carry out certain financial services such as currency exchange, money transfer or the issuance of prepaid cards. The license is regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and ensures that businesses comply with strict anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. With an MSB license, businesses not only meet basic legal requirements, but also demonstrate their commitment to transparency and security-key factors in earning the trust of customers, financial institutions and regulators.

Who in Canada needs an MSB license?

Your company must be registered as an MSB/FMSB if it is engaged in any of the following activities:

Currency Exchange

Remittance

Issuance or exchange of payment instruments (e. g. traveller's cheques, money orders)

Virtual Currency Trading

Virtual Currency Transfer or Remittance Service

Even if you are already registered at the provincial or territorial level or licensed as an MSB/FMSB, you must still register with the FINTRAC.

Choosing us means receiving professional guidance from a team experienced in MSB and FMSB registration to ensure a smooth and compliant registration process. We provide tailor-made compliance solutions to help companies develop anti-money laundering/transnational crime framework programs that meet Canadian regulatory requirements. Our end-to-end support covers every stage of the registration process, from document preparation to approval by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). With our assistance, you can stay up-to-date with the latest regulatory updates to minimize the risk of penalties. Your business information will be treated with the strictest confidentiality and security, ensuring peace of mind throughout the process.

Requirements for obtaining an MSB license in Canada

To register as an MSB, you must meet the following requirements:

Company Registration

Establishment of legal entities in Canada. You can register your business at the provincial or federal level.

Actual Business Address

Your company must have a legal address in Canada. The regulator does not accept virtual office addresses.

Appointment of a Compliance Officer

Designate an officer responsible for implementing and maintaining anti-money laundering (AML) and counter-terrorism financing (CTF) compliance programs.

Develop an AML/CFT compliance plan

Develop and implement policies to prevent money-laundering and the financing of terrorism.

Customer Verification (KYC)

Implement authentication procedures for specific transactions and activities.

Record keeping and reporting

Maintain detailed transaction records and submit reports to the U.S. Financial Transactions and Reports Analysis Center in accordance with the law.

To obtain an MSB license

The Canadian MSB registration process includes the following steps:

Pre-registration

Complete the online pre-registration form on the FINTRAC website to provide basic business details.

Registration form received

After submitting the pre-registration, FINTRAC will review your application and send you a complete registration form along with a guide to completing the process.

Document preparation

Collect necessary documents, including business registration documents, detailed identification information of key personnel, anti-money laundering/transnational crime framework policies, and any other supporting documents required by the U.S. Financial Transactions and Reports Analysis Center.

Fill out the form

Fill out the official registration form that provides accurate details about your business, including

Business structure (company, partnership, sole proprietorship)

Nature of financial services provided Expected transaction volume and customer base Identity and background details of business owners and compliance officers

Submit Application

Send the completed form and required documents to the Canadian Financial Transactions and Reports Analysis Centre via a secure communication channel (e. g., Canada Post Link).

Review and Verification

FINTRAC will assess the application to ensure compliance. If necessary, they may request additional information or clarification.

Issue MSB registration number

If all requirements are met, the FINTRAC will approve the registration and issue the MSB official registration number, which must be displayed in all business communications.

Obligations after registration

After obtaining MSB registration, businesses must continue to comply with compliance requirements, including

Implement and maintain AML/Transnational Crime Framework Procedures

Submit periodic reports to the U.S. Financial Transactions and Reports Analysis Center Maintain transaction records and customer due diligence measures.

FMSB Registration Process

Foreign money service companies (FMSBs) that provide services to Canadian customers must also register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The registration process includes the following steps:

Determine eligibility

Ensure that your foreign business meets the FMSB registration criteria, including providing services to individuals or entities in Canada.

Pre-register on FINTRAC website

Similar to MSB, foreign enterprises must fill out an online pre-registration form on the FINTRAC website.

Submit Business Information

Provide detailed information about your company, including

Legal Business Name and Country of Registration

Description of financial services provided to Canadian clients Names and details of directors and compliance officers

Appointment of a Compliance Officer

Assign a responsible person to oversee the AML/TNC framework policy and ensure compliance with the requirements of the United States Financial Transactions and Reports Analysis Centre.

Develop an AML/CFT compliance plan

Develop an internal compliance program that meets Canada's AML/CFT regulatory requirements.

Submittal

Send all required documents including business registration, AML/Transnational Crime Framework policy and ownership details via secure submission channels.

FINTRAC verification

The FINTRAC will review the application and may request additional information or clarification.

Issue of FMSB registration number

If approved, the business will receive an FMSB registration number, which must be displayed in all communications with Canadian customers.

Ongoing compliance

Registered FMSBs must comply with FINTRAC reporting and compliance requirements, including

Monitor transactions involving Canadian customers Report suspicious activity and large cash transactions Keep detailed transaction records for at least five years

After obtaining an MSB license, businesses must comply with the AML/Transnational Crime Framework regulations, as well as verify the identity of the customer for a particular transaction. They must keep records of transactions for at least five years and report suspicious transactions and large cash transfers to the United States Financial Transactions and Reports Analysis Center. The failure to comply with these obligations may result in severe penalties and legal consequences.

Canada MSB/FMSB Licensing Package

• Preliminary Consultation and Assessment
• FINTRAC pre-arbitration and registration
• Company Registration
• Comprehensive Compliance Program
• Registered Address (First Year)

• All options in the base package
• Anti-Money Laundering/Compliance Officer
• Bank of Canada licence fee

• All options in the expansion kit
• Company Update
• Customized services available on request