What are the obligations of an MSB?

FMSB companies in Canada

To stay compliant with rules imposed on Money Service Businesses, it is obligatory to:

  • Get registered with FINTRAC;
  • Draw up AMLCTF compliance programs and related internal control systems;
  • Employ an officer in charge of the execution of the internal conditions properly documented;
  • Prepare internal and external operational papers that are kept u- to-date and with approvals by directors;
  • Design risk estimation tools and prepare risk reduction measures;
  • Create training plans for the team, intermediaries, and other individuals approved to act on the MSB’s behalf;
  • Regularly update its internal policies (every 2 years in an effort to test its efficiency); and
  • Stay in line with KYC rules, recording and reporting obligations.

Alongside the execution of PCMLTFA, MSBs should also adhere to the separate legislation covering the activity of MSBs in Québec, the Money-Services Businesses Act. Hence, an MSB may also be asked to pass one more registration in Québec with the Autorité des Marchés Financiers.

Notwithstanding whether an entity is an MSB, it also will need to operate under the provisions of the Criminal Code regarding proceeds of crime and terrorism and sanctions laws. Accordingly, it is advised that each entity has prepared internal documentation to prevent infringements of the Criminal Code and sanctions laws while guaranteeing full adherence to the PCMLTFA and Regulations

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