MSB license in Canada

Canada is known for its business environment stability and predictability, attracting foreign investments and fostering business development. Due to its geographic location and trade agreements with the USA, the country has strong trade connections and access to international markets. Foreign investors choose Canada for several reasons: a stable economy, developed democracy, transparent legislative framework, tax incentives, and the active development of the fintech market. To provide financial and related services, a company can obtain an MSB [Money Service Business] license.

Advantages of MSB License Canada

The Money Service Business license grants the right to offer the following services in and from Canada:

• currency exchange;
• transferring and remitting funds, payment service provider services;
• exchange and transfer of crypto assets [if the company does not open crypto wallets or hold clients’ crypto assets for a period, additional certification from the Securities Commission is not required];
• crowdfunding platform services [additional registration is required for this activity]. 

After registering as an MSB in Canada, the licensee can offer services within Canada’s territory and to clients from other countries, adhering to rules set by regulators and some important additional aspects related to “direct advertising.”

SBSB experts provide comprehensive legal support for their clients during MSB registration in Canada. Our services are based on a comprehensive approach: from consultations and preparing the necessary document package to completing the registration process, opening accounts, and successfully launching your business.

Stages of Canada MSB Registry 

The Canadian regulator FinTRAC [Financial Transactions and Reports Analysis Centre of Canada] is responsible for reviewing prepared documents and making decisions on issuing Money Services Business license Canada. Despite providing the option for an online registration process, the procedure is multi-stage and challenging. Difficulties arise during the preparation of mandatory document forms. An online interview with the regulator is also possible.

If you need to register an MSB in Canada, the SBSB team will guide you through all the nuances of the registration process. We are familiar with the specifics of the regulatory body’s work and all its requirements, allowing you to save time and launch your Canada money service business as quickly as possible.

Canada MSB license acquisition includes the following stages:

• agreeing on a corporation name with a minimum of two words [one must indicate the direction of the provided services, e.g., “pay”];
• registering a Canadian corporation;
• preparing a business plan, AML/KYC policies;
• completing and submitting a pre-registration form on the FINTRAC website;
• possibly undergoing an online interview with FINTRAC;
• completing a self-assessment form and submitting it to FINTRAC;
• gaining access to the FINTRAC platform and filling out the questionnaire;
• directly registering as an MSB and displaying data in the FINTRAC register. 

Correctly filled FINTRAC forms, well-prepared documents, preparation of the corporation’s leadership, and the AML officer for interviews are crucial for receiving a positive decision from the regulator for MSB registration.

Key Requirements for Obtaining MSB License

There are no requirements for local staff, local MSB owners, or a physical office in Canada [a virtual office is sufficient]. Notably, unlike licenses in other jurisdictions, Canadian MSB licenses do not have minimum capital requirements.

To undergo the Canada MSB registration procedure, you need to gather information and prepare a document package, including:

• business information according to the business plan form;
• business plan;
• personal and professional information about senior management and company owners;
• information about the AML officer and their experience;
• corporate organizational structure and number of staff;
• AML/KYC policies;
• list and description of services to be provided;
• planned financial indicators;
• contact details of the company’s representative, etc. 

MSB License Cost in Canada 

The cost of an MSB license depends on several factors. The service may include payment for all government fees and virtual office rent for one year. SBSB experts can provide an estimate of the expenses related to registering as an MSB in Canada and comprehensive legal support after a detailed study of your project.

Timeline for Obtaining MSB License

Corporation registration takes up to 2 weeks after the preliminary name check. Document preparation and MSB registration typically take 2–3 months, and the FINTRAC upload period takes up to 4–5 months.

However, this is provided the client timely provides all information and documents, and the regulator does not raise additional questions or requirements.

To mitigate refusal risks and save time, it’s advisable to turn to the SBSB team. We assist in the turnkey registration of MSB license in Canada, handling all legal matters.