Intelligent Solution Group > Services > Canadian Money Service Business license for payment systems

Canadian Money Service Business license for payment systems

Advantages of a Canadian company with a license — faster timelines compared to an English EMI. The MSB license allows opening neobanks and operating with cryptocurrencies.

Price: from €35 000

A Canadian MSB (Money Service Business) license is for companies engaged in financial services or cryptocurrency-related activities:

companies engaged in currency exchange and money transfers
cryptocurrency exchanges or electronic payment services
online stores selling goods abroad and accepting payments in multiple currencies
financial transfers for individuals and legal entities within a holding with a multi-level corporate structure
fintech companies providing innovative financial services

Advantages:

no minimum capital requirements

no regulatory fee

no transaction limits

only one director required

license issuance timeframe — from 6 months

SWIFT and SEPA connectivity

The Canadian Money Service Business (MSB) license can be compared to a UK EMI license, but it is much more affordable while having similar authority. This is why neobanks like TRANSFERWISE, PAYSEND, WIREXEND, PAXUM, and others obtained it for their operations.

What are the regulatory requirements for a Money Services Business (MSB) license, and who issues the licenses?

The regulator for MSB licensing is the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC). It has a set of requirements that must be met in order to obtain an MSB license.

1

Register your company with FinTRAC and obtain a unique identification number (MSB registration).
2

Comply with anti-money laundering (AML) and counter-terrorist financing (CTF) requirements, including establishing policies and procedures for customer due diligence, transaction monitoring, and reporting of suspicious activities.
3

Provide a complete list of the company’s directors, executives, and owners (including founders and beneficial owners).

4

Submit an action plan for preventing fraud and money laundering.
5

Demonstrate the company’s financial stability and sufficient funds to meet all obligations to clients.
6

Comply with requirements for storing client and transaction data, as well as protecting information confidentiality.
7

Comply with geographic scope requirements, including regulations for operating in other countries.
8

Comply with any other requirements established by FinTRAC.

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Stages of obtaining a Canadian Money Service Business (MSB) license

We assess the activities of your business.

We help collect and prepare all necessary documents.

We register the company in Canada.

We prepare the application for the MSB license.

We establish all KYC and AML procedures.

We go through the regulatory checks together with you.

We have completed this procedure multiple times, so we will minimize your workload and provide full support throughout the process. Our specialists will be by your side at every stage and available to address any questions.

Additional services

paid separately

opening a bank account
assistance with SWIFT connectivity
verification of the source of funds
connection and integration with the banking software platform

Is it possible to work with clients from the USA and the EU using a Canadian MSB license?

A Canadian MSB license allows providing financial services to clients worldwide, including the USA and the European Union, but with certain restrictions. To work with US residents, especially in the mass B2C segment, registration with FinCEN and compliance with US AML and KYC regulations may be required. Similarly, in EU countries, additional notifications or registrations may be needed depending on transaction volumes and the business model. We provide guidance for each region and help establish a legally compliant operational structure.

Is physical presence in Canada (office, staff) required?

For obtaining and maintaining an MSB license, having a physical office or employees in Canada is not required. However, the company must have a mailing address and an appointed compliance officer who will interact with FinTRAC and other authorities. We can provide trusted Canadian partners who ensure all necessary legal and administrative requirements are met.

Which banks or payment providers work with MSB companies in Canada? Are there difficulties in opening an account?

Working with MSB companies requires enhanced due diligence from banks, and not all banks are willing to open accounts for such organizations, especially those involved with cryptocurrencies. However, we have experience working with several Canadian banks and international fintech providers that are ready to work with MSB companies. We assist clients in selecting a bank and preparing a complete set of documents for opening a corporate account.

Cases:

CASE: How to recover frozen $600,000

The client faced a problem with frozen funds in the account of his international company. The bank where the account was held was in the process of liquidation and froze all funds while starting an audit of its clients.

CASE: Forgotten $400,000

Our client decided to completely liquidate his company, established about 10 years ago in Latvia. During the liquidation process and communication with the bank, we discovered that the client had $400,000 in the account for several years — money everyone had forgotten about.