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.
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
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.
Overview of Money Services business (MSB) and Foreign Money Services business (FMSB) in Canada
Money services business (MSB) registation / licence in Canada:
1) Offer one or more of the following services to the public:
– Foreign exchange dealing
– Remitting or transmitting funds
– Issuing or redeeming money order or similar negotiable instruments
– Dealing in virtual currency
– Crowdfunding platform services
2) Have a place of business in Canada
– Are incorporated in Canada;
– Have a physical location in Canada; or,
– Have employees, agents or branches in Canada.
Foreign money services business (FMSB) registation / licence in Canada:
1) Offer one or more of the following services to the public:
– Foreign exchange dealing
– Remitting or transmitting funds
– Issuing or redeeming money order or similar negotiable instruments
– Dealing in virtual currency
– Crowdfunding platform services
2) DO NOT have a place of business in Canada:
– Are not incorporated in Canada;
– Do not have a physical location in Canada; or,
– Do not have employees, agents or branches in Canada.
3) Direct services at persons or entities in Canada.
4) Provide these services to clients in Canada.
Regulator and legislation
To conduct Money services business, the company must be registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). FMSBs and MSBs must comply with the full requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
The Financial Transactions and Reports Analysis Centre of Canada (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, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (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.
Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) facilitates combatting the laundering of proceeds of crime and combatting the financing of terrorist activities, establishes the Financial Transactions and Reports Analysis Centre of Canada and amends and repeals certain Acts in consequence.
Register for our on-demand webinar “Two ways to start your fintech business fast – MSB registration / licence in Canada and SPI in Spain”
Application and authorisation process of MSB / FMSB in Canada
Fees
There are no fees associated to the registration process with the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”).
MSB (Canada) application registration process
The registration can be completed online.
MSB (Canada) registration timeframe
– Pre-registration process: 5 business days.
– Registration Process: 1-2 months.
The procedure of obtaining a permission to perform Money services
Step 1 – Incorporating a company in Canada.
Step 2 – Completing FINTRAC pre-registration form and receiving access to the online MSB registration system.
Step 3 – Submitting the MSB registration form and required documents.
Jurisdictions
we cover
We have a strong focus on fintech businesses like digital banks, e-wallets, fiat-crypto wallets & e-commerce banking with the main product Digital banking.
We do not work with businesses that ONLY provide remittance services without opening payment accounts.
