MSB License in Canada

Obtaining an MSB license in Canada allows your company to legally offer currency exchange, money transfer, and virtual asset services while ensuring compliance with Canadian regulations.

Many businesses have successfully completed their MSB registration in Canada with our guidance and are now growing their financial operations worldwide.

For companies in the financial sector, an MSB license is not just a requirement but a valuable asset that enhances business credibility and expansion opportunities.

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Operate nationwide under a unified regulatory framework without additional permits.

Transparency and reputation

Compliance with Canadian regulations builds trust among clients, investors, and partners while ensuring user protection.

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What Is an MSB License in Canada?

An MSB (Money Services Business) License in Canada is a mandatory registration that grants businesses the legal authority to conduct specific financial services, such as currency exchange, money transfers, or issuing prepaid cards. Regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), this license ensures companies comply with stringent anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. By obtaining an MSB License, businesses not only meet essential legal requirements but also demonstrate a commitment to transparency and security—key factors in earning the trust of clients, financial institutions, and regulatory bodies.

In Canada, businesses offering financial services such as currency exchange, money transfers, virtual currency transactions, and similar activities must register as a Money Services Business (MSB) or Foreign Money Services Business (FMSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) before commencing operations.

Who Needs an MSB License in Canada?

If your company engages in any of the following activities, you are required to register as an MSB/FMSB:

Currency exchange

Money transfers

Issuing or redeeming payment instruments (e.g., traveler’s checks, money orders)

Virtual currency trading

Virtual currency transfer or remittance services

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

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Feature	MSB (Money Services Business)	FMSB (Foreign Money Services Business)
Business Location	Based in Canada	Based outside Canada
Registration Required?	Yes, with FINTRAC	Yes, if serving Canadian customers
Compliance Obligations	Must comply with FINTRAC AML/CTF regulations	Must comply with FINTRAC AML/CTF regulations if dealing with Canadian transactions
Reporting	Report suspicious transactions and large cash movements to FINTRAC	Report suspicious transactions and large cash movements to FINTRAC
Physical Presence	Requires a Canadian business address	No physical presence required in Canada

Choosing us means gaining expert guidance from a team with extensive experience in MSB and FMSB registration, ensuring a smooth and compliant process. We provide tailored compliance solutions, helping businesses develop AML/CTF programs that align with Canadian regulatory requirements. Our end-to-end support covers every stage of the registration process, from document preparation to obtaining FINTRAC approval. With our assistance, you stay informed about the latest regulatory updates, minimizing the risk of penalties. Your business information is handled with the utmost confidentiality and security, ensuring peace of mind throughout the process.

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Requirements for Obtaining an MSB License in Canada

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

Company Registration

Establish a legal entity in Canada. You can register your business at the provincial or federal level.

Physical Business Address

Your company must have a legal address in Canada. Virtual office addresses are not accepted by regulators.

Appointment of a Compliance Officer

Designate an officer responsible for implementing and maintaining the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) compliance program.

Development of an AML/CTF Compliance Program

Create and enforce policies to prevent money laundering and terrorist financing.

Customer Verification (KYC)

Implement identity verification procedures for specific transactions and activities.

Record Keeping and Reporting

Maintain detailed transaction records and submit reports to FINTRAC as required by law.

Step-by-Step Process for Obtaining an MSB License

The MSB registration process in Canada involves the following steps:

Pre-registration

Complete an online pre-registration form on the FINTRAC website, providing basic business details.

Receipt of Registration Form

After submitting the pre-registration, FINTRAC will review your request and send you the full registration form along with guidelines on completing the process.

Document Preparation

Gather the necessary documents, including business registration papers, identification details of key personnel, AML/CTF policies, and any additional supporting documentation required by FINTRAC.

Form Completion

Fill out the official registration form with precise details about your business, including:

Business structure (corporation, partnership, sole proprietorship)
Nature of financial services provided
Expected transaction volume and customer base
Identification and background details of business owners and compliance officers

Submission of the Application

Send the completed form and required documents to FINTRAC through a secure communication channel, such as Canada Post Connect.

Review and Verification

FINTRAC will evaluate the application to ensure compliance with regulations. They may request additional information or clarifications if necessary.

Issuance of MSB Registration Number

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

Post-Registration Obligations

After receiving the MSB registration, businesses must adhere to ongoing compliance requirements, including:

Implementing and maintaining AML/CTF procedures
Submitting periodic reports to FINTRAC
Keeping records of transactions and customer due diligence measures

FMSB Registration Process

Foreign Money Services Businesses (FMSBs) that provide services to Canadian customers must also register with FINTRAC. The registration process includes the following steps:

Determine Eligibility

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

Pre-registration on FINTRAC Website

Similar to MSBs, foreign businesses must complete an online pre-registration form on FINTRAC’s website.

Submission of Business Information

Provide detailed information about your company, including:

Legal business name and country of incorporation
Description of financial services offered to Canadian clients
Names and details of directors and compliance officers

Appointment of a Compliance Officer

Assign a responsible person to oversee AML/CTF policies and ensure compliance with FINTRAC regulations.

Development of AML/CTF Compliance Program

Prepare an internal compliance program that meets Canadian AML/CTF regulatory requirements.

Submission of Documents

Send all required documents, including business registration, AML/CTF policies, and ownership details, through a secure submission channel.

Verification by FINTRAC

The application will be reviewed, and FINTRAC may request additional information or clarification.

Issuance of FMSB Registration Numbe

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

Ongoing Compliance

Registered FMSBs must adhere to FINTRAC’s reporting and compliance requirements, including:

Monitoring transactions involving Canadian customers
Reporting suspicious activities and large cash transactions
Keeping detailed transaction records for at least five years

After obtaining an MSB license, businesses must maintain compliance with AML/CTF regulations while verifying customer identities for specific transactions. They are required to keep transaction records for at least five years and report suspicious transactions as well as large cash transfers to FINTRAC. Failure to comply with these obligations can result in severe penalties and legal consequences.

MSB/FMSB License Packages in Canada

Basic

^$8 500
- Initial Consultation & Assessment
- FINTRAC Pre-regitration and Registration
- Company Incorporation
- Comprehensive Compliance Program
- Registered Address (1st Year)
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Extended

^$11 500
- All options as in the Basic package
- AML/Compliance Officer
- Bank of Canada License Fee
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Premium

^$14 500
- All options as in the Extended package
- Corporate Updates
- Custom services available on request
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FAQ

How long does it take to obtain an MSB license?

It can take from a few weeks to a few months, depending on how complete the application is.

Do foreign companies need an MSB license in Canada?

Yes, foreign companies offering financial services in Canada must register as an MSB.

Can I use a virtual office for my MSB registration?

No, a physical address is required for registration.

Do I need a compliance officer?

Yes, you must have a compliance officer to ensure adherence to anti-money laundering (AML) regulations.

Is there a difference between an MSB and an FMSB?

MSB refers to money services, while FMSB includes broader financial services like insurance and investments.

What are the reporting obligations for MSBs?

MSBs must report suspicious transactions and large transactions (over $10,000).

How often do I need to renew my MSB registration?

The registration must be renewed every two years.

Can an MSB operate online?

Yes, MSBs can operate online, but they must still comply with all regulatory requirements.

What are the tax obligations for an MSB in Canada?

MSBs are subject to Canadian tax laws, including Goods and Services Tax (GST)/Harmonized Sales Tax (HST) on certain services. They must also file tax returns, report income, and maintain records for audit purposes. It's important to consult with a tax professional to ensure full compliance with federal and provincial tax requirements.

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