Canadian Money Service Business licence for payment systems
Canada's financial sector has developed rapidly in recent years, which has had a positive impact on the country's economic well-being. The country offers a wide range of financial instruments and consumer protection mechanisms, making it attractive to foreign investors, which is the reason why many companies have increased their interest in obtaining an MSB license in Canada.
MSB (Money Service Business) is a licence issued to institutions that conduct activities related to financial services:
- currency exchange and money transfer companies;
- cryptocurrency exchanges or electronic payment services;
- online shops that sell goods abroad and accept payment in different currencies;
- financial transfers for individuals and for legal entities within a holding company with a multi-level corporate structure;
- fintech companies that provide innovative financial services.
An MSB licence provides legal protection for the business and increases trust from customers and partners.
The Canadian Money Service Business can be compared to the English EMI, only it is much cheaper and has the same influence. That is why TRANSFERWISE, PAYSEND, WIREXEND, PAXUM and others got it for their work.
From experience: it is difficult to get a Canadian licence by yourself, many of our clients give up already at the stage of collecting and processing documents.
Steps for obtaining a Canadian Money Service Business licence:
- We will study the client's project: what services he plans to provide, potential contractors. After detailed analysis we will give you an answer whether MSB licence is suitable for closing all the client's goals;
- We will help you to gather and prepare all necessary documents for registration of a Canadian company;
- register the company in Canada;
- Prepare application for MSB license;
- send it to the regulatory agency along with the documents, negotiate on your behalf with the officers on request;
- We will help you to pass the procedure of inspection by the regulatory body: audits, checks for compliance, as well as for financial fraud.
- perform SOFT integration;
- We open a bank account with a SWIFT connection.
You will receive your MSB licence in 6-8 months.
Intelligent Solution Group — a safe space for money and assets.
Our lawyers will study in detail the goals to be achieved at the exit, offer a competent solution so that your business develops and operates at full capacity.
What documents do I need to apply for an MSB licence?
To obtain an MSB (Money Services Business) licence you need
- an application for an MSB licence;
- Copies of ID cards and/or passports of all managing persons;
- Proof of incorporation;
- Utility bill/reference letter in English and not older than 3 months;
- business plan and description of the financial services to be provided;
- AML/KYC compliance documents.
What are the requirements of the Money Services Business licence regulator, who issues the licence?
The regulator for MSB licensing is the Financial Transaction Analysis Centre of Canada (FinTRAC). It has a number of requirements that must be met in order to obtain an MSB licence.
In particular, they require:
- Register their company with FinTRAC and obtain a unique identification number (MSB registration).
- Comply with anti-money laundering and counter-terrorist financing requirements, including establishing policies and procedures for customer due diligence, transaction monitoring and suspicious transaction reporting.
- Provide a complete list of the company's directors, officers and owners (including founders and beneficial owners).
- Provide an anti-fraud and anti-money laundering action plan.
- Demonstrate that the company is financially sound and has sufficient funds to ensure that all obligations to customers are met.
- Comply with customer and transactional data retention and confidentiality requirements.
- Comply with geographical coverage requirements, including rules for operations in other countries.
- Comply with other requirements set out by FinTRAC.
What requirements do I need to meet once I am licensed as a Money Services Business?
1. adhere to reporting requirements and record all transactions that are carried out;
2. have sufficient liquid assets to meet potential customer requirements and keep your finances safe;
3. verify the identity and identity of all its customers in order to prevent terrorist financing, money laundering and other crimes
4. protect the confidentiality of its customers and comply with data protection legislation;
5. train its staff on all requirements and standards in line with their roles and responsibilities.