Ready-Made MSB Company in Canada

Who This Acquisition Fits

Consider this acquisition if you need an existing Canadian company for money transfers, foreign exchange, or crypto exchange and transfer services. Match the services listed in the company’s FINTRAC registration to the activities you plan to offer.

The buyer must be ready to disclose ownership, and the company must carry out its anti-money laundering (AML) duties after the transfer.

Depending on the company’s payment activities, registration with the Bank of Canada under the Retail Payment Activities Act (RPAA) may also be required in addition to FINTRAC registration.

MSB Activities and Crypto Coverage

FINTRAC’s MSB rules cover the services below. One company may not cover every service.

• Foreign exchange: exchanging one conventional currency for another, such as Canadian dollars for US dollars.
• Remitting or transmitting funds: sending money between people or businesses through electronic funds transfer networks or other methods.
• Payment instruments: issuing or redeeming money orders, traveler’s checks or similar negotiable instruments that can be transferred to another person.
• Virtual currency exchange and transfer: exchanging conventional money for crypto, exchanging one cryptocurrency for another and transferring crypto for clients.
• Crowdfunding platforms: providing or maintaining a platform through which people raise funds.
• Payment service provider services: providing payment services that qualify as funds transmission or virtual currency services under the MSB rules.
• Armored car services: transporting currency, money orders, traveler’s checks or other negotiable instruments by armored car.
• Check cashing: giving customers money in exchange for their checks.
• Private ATM acquirer services: providing acquiring services for privately operated automated banking machines (ATMs).

Custody, staking, lending, issuance and trading platforms require their own analysis.

What Gofaizen & Sherle Provides

The $32,500 package covers four areas:

Confirm support duration and the treatment of taxes, government charges and third-party costs in the transaction terms.

Buyer Requirements

To assess your plans and identify the requirements that apply, prepare:

• identity and ownership/control documents to establish who is buying
• business model and money flows to identify applicable requirements
• source-of-funds information for buyer checks
• intended customer countries to assess territorial obligations.

Transfer Timeline

Corporate transfer is within two weeks from the client’s payment for the service when the task is accepted into work. This is the corporate transfer deadline. FINTRAC responses, bank review and the start of operations follow their own processes.

Notify FINTRAC of changed or newly obtained registration information within 30 days after the day you become aware of the change or obtain the information. This notification does not replace applicable RPAA re-registration.

Buying the Company and Updating Its Records

You buy ownership and control of an existing Canadian company, together with its corporate records. FINTRAC registration is not a standalone license that can be freely transferred to another buyer or company.

• Update the corporate records to show the new ownership and control.
• Notify FINTRAC when registered information changes or new information is obtained, including ownership or control details. Notification alone does not confirm approval.
• Check which additional registrations or permissions your planned services require and complete the applicable process before offering those services.

What FINTRAC Registration Covers

FINTRAC, Canada’s anti-money laundering authority, supervises registered MSBs for compliance with those obligations. Registration is not a general financial license or an endorsement of the company.

Before buying, check the company’s current status and listed services in FINTRAC’s registry against your planned activities. A listed service does not establish that the company has every permission needed to offer it.

Additional requirements depend on what the company does and where it operates. Payment services may require Bank of Canada registration under the Retail Payment Activities Act. Securities or crypto trading platform activities may require permissions from provincial securities authorities. These requirements can apply alongside FINTRAC registration.

Compliance After Acquisition

The company must put its compliance program into practice: appoint an officer, maintain written policies, assess risk, train staff and review whether the program works.

Check clients’ identities and who ultimately owns or controls corporate clients. Monitor transactions, file required reports and keep records. Under the travel rule, specified sender and recipient information must accompany relevant transfers.

FINTRAC registration lasts two years; renew before expiry. Start each compliance effectiveness review no later than 24 months after the previous review started. Complete the previous review before starting the next.

Banking and Tax Considerations

Banking Support
Gofaizen & Sherle identifies providers and assists with account applications. Each bank or payment provider decides whether to accept the company and how long its review takes. Assistance does not guarantee an account.

Tax Review
Acquiring control may end the corporation’s tax year immediately before the acquisition, requiring a tax return for that period. A tax review must consider the transaction structure, corporate status and statutory exceptions.

Ready-Made Company or New Registration

MSB and PSP routes address different eligibility tests, they are not shortcuts around compliance.