Operation of MSB License in Canada

ELI Canada

Around the subject of licensing and registration of Canadian money services businesses, there is sometimes a lot of conflicting and perhaps even inaccurate data accessible in the public media. In this article we want to overview what is a msb license and all details that are connected with the MSB License. Entrepreneurs and investment owners who want to take their company global consider Canada as a potential site, so the topic of licensed msb will be relevant for everyone who desires to start commercial activity now.

What is an msb license?

It is a permit to run enterprises that provide services like dealing in digital assets, sending sunds, and foreign currency exchanges.

MSB licensing in Québec and other provinces

Contrary to the federal regulatory environment, the Province of Québec has AML duties and mandates that anybody who runs an MSB, has offices or workers there, or both, must possess a permit for all of the MSB operations they do within Québec. The Money Services Business Act of Québec imposes a variety of regulations on these MSBs.  Revenu Québec is in charge, and it has the authority to conduct audits and impose penalties for violations of the MSBA.

Other Canadian provinces are debating and seeking public input on a regulatory regime for MSBs operating inside those provinces, which may include requiring the MSB to get extra provincial permits.

There are numerous additional regulatory standards that MSBs must be aware of, they must follow, such as tax responsibilities, privacy statutes and regulations, etc.

Most significantly, just because an MSB is registered with FINTRAC does not imply it may automatically sell goods and assistance to clients outside of Canada. MSBs must abide by the laws and rules of the areas in which they offer their goods and services as well, especially when such nations have a Long-Arm Statute. To make sure they have the necessary registration or MSB license, money service companies must make sure they are investigating the statutes and rules within the area in which they want to operate.

MSB state licensing requirements

A funds services company must enrollment with FinCEN.The owners or controlling individuals of an MSB are responsible for registering it and must do so before the establishment date. It must be filled out and signed the form, and it must be submitted within 180 days of the MSB’s establishment.

  • Every 2 years, registrational procedure must be renewed. Re-registration is necessary in a few specific situations.
  • A copy of the submitted establishment  form and any other supporting records must be kept for five years.
  • During affiliation, at minimum one director should be selected who has prior expertise in the financial industry. Additionally, a manager of the business’s AML/CTF operations must have been designated before incorporation. Directors do not need to be Canadian citizens.
  • The firm name has to be created with 2 words and more, and one of them might reflect the primary commercial activity, such as remittances .
  • There is no set minimum amount.

Canadian msb license cost

Although FINTRAC does not charge for registering , some suggested capital may be required for the company’s Canadian registration.

To get in touch with us for consultations if you’re in msb license search and unclear of how to find appropriate variants, what conditions you have to obtain and what capital your company requires.

Contact Us

1055 West Georgia St. BC V6E 3P3