MSB Canada registration
Welcome to a one-stop shop for launching a fintech business under Canadian MSB registration!
Canadian MSB is a smart alternative to European PIs and EMIs.
Contact us
Advapay Canada
Leading service provider for international fintech firms operating as money services businesses (MSB) in Canada
Presence in Canada, clients from over the world
We have a strong presence in Canada and our services cater to a diverse range of clients, spanning from startups and established businesses to unicorn companies across the globe. Our reach extends to various regions, including Europe, Africa, Latin America, and Asia.
More than MSB registration. We provide a fully operational company
Our expertise goes beyond simply registering MSBs; we also provide comprehensive assistance in launching operational payment businesses: opening of correspondent accounts, establishing remittance corridors, and more.
We are Fintech practitioners, not just consultants
We pride ourselves on being fintech practitioners with an extensive network of partners and a profound understanding of the best practices required to ensure a seamless and stress-free launch and operation of payment businesses.
Why Canada
01
Short time-to-market (only three months)
02
Regulator is friendly to companies operating internationally
03
Non-strict local presence requirements
What services Canadian MSBs
can provide:
Open payment accounts
Make payments and money transfers
Exchange currencies
Issue cards
Acquire cards
Exchange, send and receive crypto
Perform crowdfunding activities
Our services for Money Services Businesses registration in Canada
If you are looking to register a Money services business (MSB) or Foreign Money Services Business (FMSB) in Canada, Advapay can offer you its legal, technical and business expertise and consulting support.
01
MSB registration
Incorporating a company in Canada
Developing a regulatory business description
Completing application forms and finalizing the submission
Responding to clarification requests from the regulator
02
Preparation of custom compliance policies
AML-CTF Policies & Procedures
Risk Assessment
Anti-Bribery & Corruption Policy
Sanctions Policy
Risk Appetite
Other as required
03
Opening accounts in financial institutions
Preparation of custom program of operations, business plan, financial forecast to open accounts in financial institutions
Making intros to banks
Support in filling in the documents
Responding to clarification requests
04
Compliance-as-a-service
Appointing a local compliance officer
Representing the company in communication with the regulator and banking partners
Writing reports and submitting them to regulator
Keeping the compliance program up-to-date
MSB in Canada: main requirements
Legal entity
Corporation is the most common type of legal entity established for the purpose of obtaining MSB license. You may choose to incorporate a company in any Canadian province or federally – it will not affect the process of obtaining the license.
Office
Having an office at the registration stage is not required. The company must have a legal address, which can be, for example, the director’s home address. However, it is recommended to have a commercial address. Virtual offices are not accepted by the regulator.
Personnel
At the registration stage, a Compliance Officer should be appointed – preferable with experience in the financial sector in Canada.
Beneficiaries
You must disclose some information about beneficial owners, such as their name, place of birth, country of residence.
MSB in Canada: documents and information submitted
01
Name of the company that is going to obtain the license
02
Company registration information
03
Legal (business) address of the company
04
Contact details of the company representative
05
Description of the services and activities the company plans to provide
06
Information about the company’s bank account (if applicable)
07
Information about your Compliance Officer
08
Staff headcount
09
Information about the owners of your MSB and senior management – for example, their name and date of birth (about the company directors and each person who owns or controls 20% or more)
10
Estimate of the expected total amount of transactions per year for each MSB ser-vice you provide
11
Detailed information about each branch
12
Details about each MSB agent
!! FINTRAC tends to send clarification requests with regards to any piece of the information that the applicant provides in order to confirm that the company is eligible to receive MSB registration. This may also include:
– a business plan with the detailed description of the services that justifies the need of the registration.
– an interview with the compliance officer or contact person appointed for the application.
Application Process
The MSB registration process in Canada is completed online, with a pre-registration phase lasting about 5 business days. The full registration typically takes 3 to 4 months.
1
Incorporating a company in Canada
2
Completing FINTRAC pre-registration form and awaiting further instructions
3
Submitting the MSB registration form and required documents
MSB Legislation and Regulation in Canada
PCMLTFA
FMSBs and MSBs must comply with the full requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
PCMLTFA is Canada’s primary legislation designed to combat money laundering and terrorist financing. It establishes the legal framework for detecting, preventing, and deterring these illegal activities by imposing obligations on financial institutions, businesses, and individuals, including reporting suspicious transactions, keeping records, and implementing compliance programs.
FINTRAC
To conduct Money services business, the company must be registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
FINTRAC is Canada’s financial intelligence unit (FIU). The Centre assists in the detection, prevention and deterrence of money laundering and the financing of terrorist activities. FINTRAC was established by, and operates within the ambit of PCMLTFA and its Regulations. The Centre is one of several domestic partners in Canada’s anti-money laundering and anti-terrorist financing (AML/ATF) regime, which is led by the Department of Finance.
RPAA
Canada’s financial landscape is set to undergo a major shift with the introduction of the Retail Payment Activities Act (RPAA), aimed at strengthening the security and dependability of the country’s payment ecosystem. It’s important to note that this new requirement does not replace the existing MSB registration. For most MSBs, the RPAA registration will be an additional obligation.
Bank of Canada
Under the new RPAA framework, all payment service providers (PSPs) — both domestic and foreign — will need to register with the Bank of Canada as a first step toward regulatory compliance. While FINTRAC remains responsible for overseeing anti-money laundering (AML) and counter-terrorist financing (CTF) measures through MSB registration, the Bank of Canada’s role under the RPAA will focus on ensuring that PSPs implement robust systems for operational risk management and incident response.
Register for our on-demand webinar “RPAA Regulations in Canada – Requirements and Registration”
Jurisdictions
we cover
We have a strong focus on fintech businesses like digital banks, e-wallets, fiat-crypto wallets, e-commerce banking and remittance.
