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Obtaining a Money Service Business license in Canada

Obtaining a Money Service Business license in Canada

Canada is an ideal destination for business owners and investors who want to expand into a foreign market. Canada has a stable economy, which will prevent you from the risks of business shutdown. Some of the reasons for this economic stability are low tax rates, freedom to do trade and the well-managed bureaucracy.

Money Service Business (MSB) is a non-bank financial institution that allows you to provide various types of financial activities:

  • currency exchange services;
  • provision of money transfer services;
  • dealing in virtual currency;
  • issuing or redeeming money orders, traveler’s cheques or anything similar;
  • merchant acquiring.

It should be noted that in Canada you can also obtain an FMSB payment license, it allows you to provide the similar services as the MSB license.

The main difference is that MSB is a company that is registered in Canada, has an local office and employees. In addition, such company can provide services to clients from other jurisdictions but in some locations, you need to obtain a local licenses for certain activities.

FMSB – is a company registered outside Canada, without branches and employees in this country. However, such company can provide services to Canadian legal entities, individuals or customers from Canada.

FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) reviews the documentation and decides whether to issue a license. To obtain an MSB license, you must prepare a necessary package of documents, which will be important in further to the approval of your license.

When submitting an application, it is indicated what services exactly the company will provide, also, you can specify several types of activities.

Basic requirements for obtaining an MSB license:

1) company registration in Canada;

2) at least one director with experience in the financial sector;

3) AML officer with relevant experience;

4) renting an office in Canada;

5) preparation of AML/CTF policy  and business plan;

6) opening a bank account in Canada.

FINTRAC does not establish minimum share capital requirements. We would advise you to contribute a certain amount of authorized capital to show gravity of your intentions to develop business in Canada.

The term for registering a company with FINTRAC takes on average about 20 working days. On condition that all the necessary documents have been submitted and the registrar does not have additional questions.

Mayon Solutions accompanies clients in the full process of obtaining an MSB or FMSB license. We will gladly provide you with professional advice. Please email us at sales@mayon.solutions.

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