How to Get an MSB License in Canada: A Comprehensive Guide
Learn how to obtain an MSB license in Canada with our step-by-step guide. Understand FINTRAC requirements, compliance, costs, and benefits for your financial business. Start today!
Introduction
Welcome to the ultimate guide on obtaining an MSB license in Canada. If you're planning to operate a Money Services Business (MSB) or Foreign Money Services Business (FMSB) in Canada, registering with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is mandatory. This license ensures compliance with Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), enabling you to offer services like currency exchange, money transfers, or virtual currency transactions legally. Canada MSB license doesnt required capital
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In this guide, we’ll walk you through the requirements, step-by-step registration process, costs, and compliance obligations for securing an MSB license. Whether you're a fintech startup, a cryptocurrency exchange, or a money transfer service, understanding the MSB licensing process is critical to thriving in Canada’s stable and regulated financial market. Let’s dive into everything you need to know to get started and ensure your business complies with Canadian regulations.
What is an MSB License in Canada?
An MSB (Money Services Business) license in Canada is a regulatory requirement for businesses offering financial services such as:
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Foreign exchange dealing: Buying or selling currencies.
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Money transfers: Sending or receiving funds, including international remittances.
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Virtual currency transactions: Exchanging or transferring cryptocurrencies.
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Issuing or selling money orders: Providing secure payment instruments.
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Cheque cashing: Converting cheques to cash for a fee.
The license, issued by FINTRAC, ensures businesses comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. Both Canadian MSBs and Foreign MSBs (FMSBs) serving Canadian clients must register with FINTRAC.
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The cost of MSC license in Canada
MSB License
(Turnkey Solution)
18,000€
- Company registration in Canada
- Account opening
- Individual AML/KYC policy
- Company documents
- Local office setup
- MSB registration with FINTRAC
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FMSB License
(Adding MSB to the company outside of the Canada)
15,000€
- Individual AML/KYC policy
- MSB registration with FINTRAC
Local Director & AML Officer Recruitment for MSB License
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To obtain an MSB (Money Services Business) license, appointing a local Director and AML Officer is mandatory. We offer end-to-end recruitment services for these roles, ensuring full compliance with regulatory requirements.
Service fee: €4,000 per position (one-time cost).
This includes candidate sourcing, initial screening, and documentation support.
The difference between MSB and FMSB license
Step-by-Step Guide to Obtaining an MSB License in Canada
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Register Your Business:
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Incorporate your business in Canada (e.g., corporation, LLC) and obtain a Business Number (BN) from the Canada Revenue Agency (CRA).
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Choose a province like Ontario or British Columbia, where no local director residency is required.
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Complete FINTRAC Pre-Registration:
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Submit an online pre-registration form on FINTRAC’s portal, including business details and estimated transaction volumes.
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Appoint a Compliance Officer:
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Designate a qualified individual to oversee AML/CTF compliance. Outsourcing is acceptable.
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Develop an AML/CTF Compliance Program:
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Create policies for KYC (Know Your Customer), transaction monitoring, and suspicious activity reporting (SAR).
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Conduct risk assessments and staff training.
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Submit Required Documents:
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Provide business registration documents, ownership details, and AML/CTF policies.
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Include background checks for directors and owners with 20% or more stake.
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FINTRAC Review:
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FINTRAC reviews your application within 3-5 weeks, may request clarifications, and conducts interviews if needed.
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Receive Approval:
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Upon approval, you’ll receive an MSB registration number to display in client communications.
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Ongoing Compliance Requirements for MSBs
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After obtaining your MSB license, you must:
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Maintain AML/CTF Program: Regularly update policies, conduct audits, and train staff.
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Verify Customer Identities: For transactions over CAD 1,000 or suspicious activities.
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File Reports: Submit suspicious activity reports (SARs) and large cash transaction reports to FINTRAC.
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Record Keeping: Retain transaction records for at least 5 years.
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Update FINTRAC: Notify within 30 days of changes in business structure or ownership.
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Non-compliance risks penalties, license revocation, or legal action.
Benefits of an MSB License in Canada
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Regulatory Trust: Enhances credibility with clients and financial institutions.
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Crypto-Friendly: Covers virtual currency services without additional certifications.
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No Capital Requirements: Unlike other jurisdictions, Canada has no minimum capital for MSBs.
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Fast Processing: Typically 2-5 months, faster than many European licenses.
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Global Opportunities: Operate in Canada and serve international clients.
Challenges and Considerations
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Complex Compliance: AML/CTF programs require ongoing effort and expertise.
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Document Preparation: Gathering ownership and background check details can be time-consuming.
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Provincial Regulations: Quebec and British Columbia may have additional licensing requirements.
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Fraud Risks: Scammers may offer fake “expedited” MSB services; work with trusted consultants.
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MEET OUR TEAM
Mardo Soo
CEO
"As CEO, I see Canada’s MSB license as a great choice for launching a crypto exchange or payment platform. The 0 capital requirement makes it a fast and cost-effective solution for global expansion."