MSB License in Canada

Last Update: 11.11.2025

Canada has firmly established itself as a top jurisdiction for financial businesses. This jurisdiction combines flexible regulation with a strong international reputation. Gofaizen & Sherle’s lawyers will assist you at every stage of obtaining a Canadian MSB license: from compliance analysis to the launch of your project.

Advantages Who needs an MSB Requirements and Procedure Regulation FAQ

Gofaizen & Sherle

Contact us now! Get prompt advice and a commercial offer.

Setting up an MSB company can be affordable!
Contact us for a consultation to find out what licensing options are available to you.

Crypto license

Canada remains one of the most stable and regulated jurisdictions for financial companies providing currency exchange, money transfer, and virtual asset services. Having a Canadian MSB license issued by FINTRAC allows you to carry out such activities legally and gives you access to banking infrastructure, international settlements, and payment systems. The Canadian license will become particularly relevant in 2025 with the introduction of MiCA regulations in the EU and stricter requirements in other countries.

Registration is mandatory for resident MSBs and foreign companies (FMSBs) remotely serving Canadian customers. Both categories are required to comply with the PCMLTFA, maintain a comprehensive AML/CTF program, keep records, and regularly interact with the regulator.

Against the backdrop of the entry into force of the European MiCA regulation and tighter controls in the US, a MSB license in Canada is becoming a strategic tool for legal operation in the global market with minimal barriers.

Advantages of an MSB license in Canada

Regulatory certainty and legal stability

This jurisdiction has a structured regulatory environment based on the provisions of the PCMLTFA and oversight by FINTRAC. As a result, the Fintrac registration process is perceived as a standardized, reliable procedure with a high degree of legal transparency.

A rational regulatory approach

MSB licensing is not accompanied by excessive requirements for corporate structure, staffing levels, or capitalization. This makes the Canadian MSB license particularly attractive to fintech startups and medium-sized companies that need flexibility and speed to launch.

Transparency and efficiency of the registration process

The licensing process is transparent, does not require prior approval, and the entire registration is completed online, without paying any government fees. This is especially important for companies interested in money service business in Canada with minimal barriers to entry and quick market access.

High level of trust from international counterparties

Registration with FINTRAC increases trust from banks, payment systems, partners, and financial solution providers. As a result, the MSB license is perceived as a universal tool for multi-jurisdictional activities, while the cost of an MSB license in Canada remains lower than that of similar licenses in the EU and the US.

Integration of cryptocurrency operations into the legal field

The Canadian model recognizes working with virtual assets as part of financial services, similar to a crypto license. With MSB registration, a company in Canada can conduct cryptocurrency transactions by AML/CTF regulations without exposing itself to legal uncertainty or reputational risks.

Reputational and regulatory compatibility with the global market

The Canada MSB license is perceived as a reliable regulatory framework within the international financial environment. FINTRAC coordinates its activities with the FATF, which ensures compliance with global control standards and provides advantages when working in various structures.

Who needs an MSB license in Canada

In 2025, the list of these services was expanded to include virtual assets and the digital transformation of the sector. According to the PCMLTFA and FINTRAC requirements, MSB license (Money Services Business) is required to companies that provide a specific list of financial services in Canada:

Currency transactions. Exchange of one fiat currency for another, including exchange services and multi-currency payment platforms.

Money transfers. Transferring funds between individuals and legal entities within Canada or abroad, including using bank cards, e-wallets, and mobile apps.

Paying bills on behalf of a client. Acting as an intermediary in the transfer of funds from a payer to a payee: paying utility bills, loans, taxes, salaries, and other obligations. An exception is acting on behalf of a creditor to manage debt.

Issuance and redemption of payment instruments. Handling money transfers, traveler’s checks, prepaid cards, and other negotiable instruments.

Virtual asset transactions. Fiat ↔ crypto exchange; Crypto ↔ crypto; Provision of technical solutions (e.g., for crowdfunding in tokens or stablecoins).

In addition, all companies that fall under these criteria are required to obtain a FINTRAC license and comply with AML/CTF regulations. This allows them to operate legally and gain full access to the banking infrastructure.

How to Get a Money Service Business (MSB) license in Canada (requirements and procedure)

Business registration in Canada

Stage 1

Registration in the federal or provincial registry.
Obtaining a Business Number (BN) from the Canada Revenue Agency (CRA).
Name selection and approval. The company name must consist of at least two words, one of which must indicate its main area of activity.
Preparation of corporate documents, namely: company charter, information about directors (names, addresses, and nationality of directors), information about beneficial owners (information about persons owning 25% or more of the company’s shares).
Leasing an office and, if necessary, appointing a local director (preferably with experience in finance).

The company must be registered in Canada in the appropriate territorial and federal registry and obtain a business number (BN) from the Canada Revenue Agency (CRA). This is the first step towards Canadian MSB registration.

Preparation of compliance program

Stage 2

Development and finalization of Anti-money laundering (AML) and counter-terrorist financing (CTF) policies.
Appointment of a compliance officer.
Preparation of a KYC and transaction monitoring system. Know Your Customer (KYC) procedures must be implemented, including identity verification for transactions exceeding CAD 1,000. All transactions must be documented by FINTRAC regulations for a minimum of 5 years.
Internal AML training program.
Preparation of criminal record certificates for all owners ≥20%, directors, and key persons (including the CEO and president).

Pre-registration with FINTRAC

Stage 3

Complete the Pre-Registration Form. You must complete the pre-registration form on the FINTRAC. This form is a request to register as an MSB.
FINTRAC’s Preliminary Review. After you submit the pre-registration form, FINTRAC’s policy interpretation team will review the information to determine if your business is eligible for registration.
Receive Access to the Registration System. If your business is deemed eligible, FINTRAC will notify you via email or phone call.

If the company works with cryptocurrencies, in addition to MSB registration, registration with provincial securities commissions (CSA) may be required, especially if you conduct ICOs, work with derivatives, or issue tokens.

Registration with FINTRAC

Stage 4

Once FINTRAC has granted you access to its system, you must:

provide complete information about your company;
bank account details (if applicable);
ownership structure;
compliance program;
types of services provided;
projected annual number of transactions for each service;
information about all branches;
information about each MSB agent.

This is a mandatory requirement for inclusion in the Canadian MSB registry.

RPAA registration (if necessary)

Stage 5

RPAA applies to both MSBs and fMSBs that engage in money transfers/PSPs (Payment Service Providers).

The RPAA registration process involves National Security Screening, completing an application with the Bank of Canada, and developing the necessary frameworks:

Risk Assessment Plan: A detailed plan to identify, assess, and manage
operational risks related to payment services. This includes risks associated with data security, fraud, and disruptions to payment processing.
Incident Response Plan: Documentation outlining procedures for responding to incidents, including data breaches, fraud, or service disruptions.
Safeguarding Policy: A policy that outlines measures to protect end-user funds in the event of insolvency, such as maintaining funds in separate accounts or obtaining insurance.

RPAA registration can be started after the company is registered as an MSB/fMSB.

Legislation and Regulation applicable to MSB in Canada

Companies operating in the field of money transfers, currency exchange, or cryptocurrency transactions are required to comply with one of the most stringent anti-money laundering and counter-terrorist financing regimes in the world.

The activities of such organizations in Canada are regulated by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), which sets out requirements for financial transaction transparency and internal control.

Under this law, all market participants that fall under the definition of a money services business license in Canada, including crypto companies in Canada, are required to register with FINTRAC, a government financial intelligence agency. This applies to both Canadian MSBs and FMSBs operating with customers in Canada.

After registering with the Canada MSB registry, the company must implement a comprehensive compliance program. It includes internal AML/KYC procedures, regular employee training, the appointment of a compliance officer, and the implementation of customer identification and transaction monitoring systems.

There are two main types of registration:

Canadian MSB – a company registered in Canada with an office, local account, and staff;
Foreign MSB (FMSB) – a foreign organization with no physical presence but serving Canadian clients.

In both cases, you need to apply through Canada’s official MSB registry, implement KYC policies, do mandatory verification for transactions over CAD 1,000, keep records for at least 5 years, and follow the Travel Rule when transferring cryptocurrencies.

Starting in 2024, corporate structure transparency requirements will be further tightened. All beneficiaries with a 20% or greater stake, as well as directors and key managers, will be required to confirm that they have no criminal record and are of good reputation. Failure to meet these conditions will make it impossible to obtain an MSB license in Canada.

The implementation of a comprehensive compliance program, regular audits, and staff training has become mandatory requirement for compliance with the legislation and recommendations of the FINTRAC Assessment Manual.

Companies that do not comply with the established requirements risk losing their registration in the MSB register, being subject to sanctions from the Canadian regulator, and facing administrative or criminal liability.

FAQ about Canadian MSB license

What is an MSB license, and why is it required in Canada?

Companies that deal with money transfers, cryptocurrencies, or currency exchange are required to obtain the appropriate license to operate legally and comply with FINTRAC requirements.

How do I obtain an MSB license in Canada?

The process includes registering the company, preparing AML/KYC policies, and submitting an application.After verification by the regulator, you will receive a status allowing you to provide financial services.

How much does an MSB license cost in Canada?

The average cost starts at 15,000 Canadian dollars, including legal registration, company registration, and compliance support. The price may vary depending on the scope of services.

How long does the MSB licensing process take in Canada?

The process can take anywhere from two to six months. The time frame depends on the preparation of documents, feedback from the regulator, and the speed of the review.

Do crypto companies need an Canadian MSB license?

Yes, crypto companies engaged in the exchange or storage of digital assets must undergo MSB registration and comply with local Canadian legislation.

What are the responsibilities of a company with an Canadian MSB license?

The company is required to verify customers, maintain records, submit data to FINTRAC, and retain documentation for at least 5 years. Violations may result in fines and revocation of status.

What are the requirements for an Canadian MSB company director?

The director must have financial competence, no criminal record, and be knowledgeable about regulatory issues. Their approval is part of the Canada MSB license.

Can I register remotely?

Yes, registration is possible online. It is important to have a local address, representative, and corporate documents that meet MSB Canada Register standards.

What are the consequences for a company that fails to comply with the terms of an MSB license in Canada?

Violation of the terms of MSB registration leads to fines, suspension of activities, and even criminal liability for serious violations.

Connect with our experts

Our experts will tell you how to do it as quickly and easily as possible.

By clicking the button, I confirm that I have read the privacy policy and consent to the collection and processing of my personal data in accordance with the GDPR rules.