MSB License in Canada: FINTRAC Registration Support

FINTRAC registers money services businesses for federal anti-money laundering and anti-terrorist financing supervision (AML/ATF). Registration is not a license or endorsement. Gofaizen & Sherle supports MSB setup and compliance in British Columbia.

Is Canadian MSB Registration Right for Your Business?

The route may fit:

• Foreign exchange businesses
• Remittance and payment operators
• Virtual currency exchange and transfer services
• Crowdfunding platforms

It cannot replace securities permissions, provide a global passport or compensate for inadequate AML resources. Startups need an operating framework. Established groups need alignment with existing entities, controls and transaction flows.

Canada MSB Regulatory and Service Snapshot

These figures follow FINTRAC’s registration guidance.

MSB vs FMSB: Which Route Fits?

FINTRAC distinguishes MSBs from foreign money services businesses (FMSBs) by presence and client targeting.

A local office, bank account and staff are not a mandatory combined package. Both routes carry AML obligations.

Which Activities Require Registration?

Covered services include:

• foreign exchange
• funds transfers
• issuing or redeeming the business’s own negotiable instruments
• cheque cashing
• virtual currency dealing
• crowdfunding platforms.

Armoured-car services and private ATM acquirer services are also covered. A fintech or crypto label alone does not determine applicability.

What Does Gofaizen & Sherle Handle?

An agreed mandate can cover:

• Business-model analysis and route assessment
• Entity and governance documentation
• FINTRAC filing and clarification support
• AML policies and compliance arrangements
• RPAA screening and banking preparation
• Post-registration compliance support

Regulators and account providers make their own decisions.

Registration Scope, Cost and Service Options

How Does the Process Work?

1. Assess services, clients and transaction flows.
2. Confirm the route and entity structure.
3. Assemble ownership, governance and compliance evidence.
4. Complete pre-registration.
5. Submit the complete application.
6. Address questions and implement operating controls.

Applicants remain responsible for accurate evidence and compliance.

What Is Needed From the Applicant?

Prepare services, client countries, fiat/crypto flows, projected volumes, entity records, ownership/control, management, locations, agents, compliance-officer details and bank information where applicable.

FINTRAC requires criminal checks for the CEO, president, directors and persons with at least 20% direct or indirect ownership/control, including equivalent roles. Checks must be no more than six months old. Those checks need certified translation if not in English or French. FMSBs also identify a Canadian representative for service.

How Long Does Registration Take?

FINTRAC’s three-month benchmark starts with a complete application package. Complex cases can take longer. Preparation depends on document readiness and operating complexity. Clarifications, RPAA assessment and bank onboarding have separate timelines, so registration timing is not a combined launch deadline.

British Columbia Scope and Quebec Requirements

Gofaizen & Sherle registers MSBs only in British Columbia. Federal registration does not replace applicable provincial requirements. Quebec activity may require a separate money-services business license from Revenu Québec, which this service does not cover.

Do You Also Need RPAA Registration?

The Bank of Canada applies four criteria:

1. Payment functions that are not incidental to another service or business
2. Retail electronic funds transfers in Canadian or foreign currencies, excluding digital currencies
3. A Canadian place of business, or a foreign provider directing services at Canada and serving Canadian end users
4. No applicable exclusion

RPAA assessment runs separately from FINTRAC registration. Applicable duties include operational-risk controls, incident reporting and safeguarding end-user funds where required. The risk-management and safeguarding requirements took effect on September 8, 2025.

What Are the Ongoing Obligations?

Under FINTRAC’s compliance requirements, businesses need:

• A compliance officer, risk assessment, policies and training
• Applicable client identification, monitoring and record retention
• Required reports, including suspicious transaction reporting
• An effectiveness review at least every two years
• Agent oversight and applicable eligibility checks

Registration maintenance includes renewal every two years and notification of registration-information changes within 30 days. Identification triggers and retention periods vary by transaction and record category.

Can an MSB Open a Canadian Bank Account?

FINTRAC registration does not guarantee a Canadian bank account or an EMI account. Banking preparation should explain ownership, source of funds and wealth, products, client geography, flows, volumes, sanctions exposure and AML controls. Provider selection depends on current risk appetite.

Canadian MSB Projects Supported by G&S

Basal Pay MSB project included company formation, corporate documentation, AML/KYC policies and FINTRAC registration support.