Canada MSB License – For Fintech Businesses
Expand to Canada with Fast & Compliant MSB Registration.
Canada MSB Registration
Expand Your Fintech or Crypto Business to Canada
Canada offers a business-friendly alternative for fintech and crypto companies looking to expand without the complexity of EU MiCA CASP or PSP regulations. A Canada MSB (Money Services Business) license is the key to operating legally under FINTRAC regulations — and we’re here to make it simple for you.
Why Canada?
The Canadian Money Services Business (MSB) license, regulated by FINTRAC, allows companies to legally operate crypto exchanges, forex trading, and payment services with fewer regulatory barriers. Additionally, an MSB registered under the Retail Payment Activities Act (RPAA) with the Bank of Canada enables businesses to operate as a Payment Services Provider (PSP).
✔ No minimum capital requirements
✔ Limited local presence required
✔ Covers crypto, payments, forex & remittances
✔ Stable and well-regulated financial environment
While the MSB registration process is relatively straightforward, ongoing compliance with AML regulations and reporting obligations remains critical. Our Canada-based legal and compliance professionals guide you through the licensing process and long-term regulatory compliance, ensuring your business operates securely and legally.
Quick summary: MSB License in Canada
Crypto Exchange + Wallet
Remittance and Money Transfer
Setup from 2 months
Legal fees from 20.000 EUR
Local substance required
Canada MSB and RPAA Registration
Unlike the EU’s CASP framework, Canada does not require a physical office or resident directors for MSB registration. However, companies must appoint a Compliance Officer (CO) to oversee their AML program. MAXCORP can provide an outsourced Canadian resident CO solution, ensuring seamless compliance.
RPAA-registered entities, on the other hand, face additional oversight, including:
✔ Financial risk assessments
✔ Fund segregation requirements
✔ Annual audits
Our team assists businesses in navigating both the Canada MSB and RPAA registration processes, ensuring full compliance with FINTRAC and the Bank of Canada.
Canada MSB Registration Process
Getting your Canada MSB license is a straightforward process, but compliance is key. MAXCORP ensures a fast and smooth registration so you can focus on growing your business.
Initial Consultation & Business Assessment
We evaluate your business model, services, and regulatory needs to determine the best approach.
Compliance Setup & Documentation
We prepare and submit your MSB registration application to FINTRAC, ensuring full compliance with AML/CTF regulations.
FINTRAC Review & Approval
FINTRAC assesses your business structure, ownership, and compliance measures before granting approval.
Post-Registration Compliance Support
Once approved, we assist with ongoing compliance, transaction monitoring, and regulatory reporting to keep your MSB fully operational.
- At least 1 shareholder (natural person or corporate entity). No specific restrictions to citizenship or residence.
For optimal setup structure please consult our legal team. Details of beneficial owners must be provided during registration. - At least 1 director appointed. No specific restrictions to citizenship or residence.
- Appointment of a Compliance Officer (CO) responsible for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) compliance is required. We can provide an outsourced solution for the CO appointment and full compliance support.
- A physical office in Canada is recommended, but not mandatory at registration stage. A legal address in Canada is required. We can provide the full local substance solution to meet regulatory expectations.
- Crypto asset exchange services are not subject to VAT.
- Services invoiced (e.g. sales invoices) in crypto assets are subject to regular VAT rules.
- The corporate tax rate for a Canada MSB varies based on federal and provincial rates. The federal tax rate is 15% (or 9% for eligible Canadian-Controlled Private Corporations (CCPCs)), while provincial rates range from 2% to 12%, bringing the total tax burden to approximately 23%–31% depending on location and business structure. Please consult with a tax specialist for a tailored solution.
Non-residents of Canada can obtain digital signature capabilities to facilitate company administration. Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) recognizes electronic signatures as legally binding, allowing both residents and non-residents to utilize them for business transactions. To acquire a digital signature, non-residents can engage with Canadian certification authorities or electronic signature service providers, such as Signority, which offer services compliant with Canadian regulations. These providers typically require identity verification, which can often be completed remotely, enabling non-residents to obtain the necessary digital credentials without being physically present in Canada
🕒 Estimated Timeframe: 2 months
Pricing for an MSB License in Canada
Applying for a Canada MSB license (with optional RPAA registration) is seamless — our Canada-based lawyers handle the entire process remotely, including local substance solutions if required. No travel needed.
- LLC company setup in Canada
- Remote company setup
- Estimated setup time
- Type of setup package
- FINTRAC Registration
- Bank of Canada (RPAA) Registration
- AML/KYC legal package
- AML compliance consultation
- Bank Account Opening
- RPAA Government fee (CAD 2500)
-
BASIC: CANADA MSB (FINTRAC) APPLICATION Canadian LLC setup and MSB registration with FINTRAC. Includes AML policy documentation and full process management.
-
€ 20.000
- 2-3 months
- New Application
-
PREMIUM: CANADA MSB (FINTRAC+RPAA) APPLICATION Complete licensing package for company, legal package, submission of the FINTRAC+RPAA applications, and regulatory liaison.
-
€ 30.000
- 3-5 months
- New Application
-
PLATINUM: CANADA MSB (FINTRAC+RPAA) ACQUISITION Ready-made active MSB company with full FINTRAC and RPAA registrations. No activity, company name can be changed.
-
€ 60.000
- Transfer 2 weeks (+cool off 2 months)
- Ready-Made Solution Transfer
* All orders are subject to our review and subject to our final confirmation; conditions may apply. All pricing is indicative and is subject to our final confirmation upon receiving order details. Prices shown excluding VAT. We reserve the right to change our individual and package prices at any time without notice. Additional fees may apply. Please contact us for a detailed offer specific to your project.
Legal Framework and Requirements in Canada (MSB and RPAA)
Canada’s PCMLTFA mandates MSB registration with FINTRAC for crypto exchanges and payment providers to ensure AML compliance. The RPAA, overseen by the Bank of Canada, requires payment service providers to implement risk management and fund safeguarding.
MAXCORP handles MSB registration & RPAA compliance, managing applications and policy preparation for full regulatory approval.
For review and preparation of the licensing project we will ask for the following preliminary documentation:
- Valid copy of passport from each country of citizenship
- Power of Attorney (PoA)
- Business plan and forecasts
- Resume (CV) listing employment and education background for main participants
- Non-criminal certificate from the registry of convictions (not older than 3 months) for shareholder(s), board member(s), ultimate beneficiary owner(s) *
All listed documentation has to be certified by notary public and confirmed with an apostille, in English (or sworn English translation). In the first stage we will gather all information and provide step by step process overview according to your case.
Our legal compliance team will prepare internal procedures and documentation to ensure your company meets the Anti-Money Laundering (AML), Know Your Customer (KYC), and regulatory requirements under FINTRAC and the Bank of Canada’s RPAA framework. Selected key components include:
Programme of Operations
- Description of the financial services and activities the company intends to provide, including crypto exchange, money remittance, and payment processing.
- Operational procedures for client onboarding, transaction processing, and compliance with FINTRAC reporting requirements.
- Risk management systems to mitigate money laundering, terrorist financing, and financial crime risks, particularly for crypto transactions and cross-border payments.
Internal Security Measures
- Assessment and management of risks associated with money laundering, terrorist financing, and fraud prevention in financial transactions.
- Implementation of secure data collection, retention, and storage processes for customer and transaction records, following PCMLTFA and RPAA standards.
- Reporting procedures for submitting Large Cash Transaction Reports (LCTRs), Suspicious Transaction Reports (STRs), and Virtual Currency Transaction Reports (VCTRs) to FINTRAC.
- Internal compliance controls to ensure adherence to AML obligations, customer due diligence (CDD), and risk-based assessment protocols.
Rules of Procedure
- Clear transaction monitoring protocols, defining low-risk vs. high-risk transactions, with special focus on crypto-related risks and money movement trends.
- Procedures for customer due diligence (CDD), ongoing KYC checks, and enhanced due diligence (EDD) for high-risk customers, as mandated by FINTRAC.
- Record-keeping requirements for customer information, transaction logs, and compliance reports, ensuring alignment with PCMLTFA and RPAA guidelines.
- Detailed procedures for applying the FATF Travel Rule in virtual asset transactions to track the origin and destination of funds.
Instructions and Guidelines
Practical steps to identify and manage:
- Politically Exposed Persons (PEPs) and their transactions.
- Entities from high-risk jurisdictions or those flagged for AML deficiencies.
- Persons suspected of involvement in financial crimes (money laundering, fraud, terrorist financing).
- Individuals or entities subject to economic sanctions or regulatory restrictions.
- Remote transactions, digital payments, and crypto-related financial activities.
We provide substance solutions to meet FINTRAC and Bank of Canada (RPAA) compliance requirements, including assistance with setting up a local office and (out)sourcing a part time qualified Compliance Officer (CO). Our services cover ongoing training, operational support, and compliance management to ensure adherence to regulatory obligations.
Compliance Officer (CO) Responsibilities:
- Implementing and overseeing AML programs as required by PCMLTFA and RPAA.
- Transaction monitoring, reporting obligations, and risk-based compliance controls.
- Filing Suspicious Transaction Reports (STRs), Large Cash Transaction Reports (LCTRs), and Virtual Currency Transaction Reports (VCTRs) with FINTRAC.
- Conducting Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), and Ongoing Due Diligence (ODD) for crypto and financial transactions.
- Ensuring record-keeping compliance and adherence to FATF Travel Rule requirements.
The specific compliance staffing and operational requirements depend on your business model, risk profile, and transaction volumes. We provide customized recommendations following a preliminary analysis of your regulatory needs.
Regulatory authorities can revoke or suspend an MSB’s FINTRAC registration or an RPAA-regulated entity’s status for serious non-compliance. In most cases, businesses receive a warning or remedial action plan, but failure to correct deficiencies can lead to formal deregistration. Below are the most common causes:
- Regulatory Non-Compliance – Failure to maintain AML/KYC programs, transaction reporting, or FATF Travel Rule.
- False or Misleading Information – Providing incorrect details during registration or in compliance reports.
- Operational Inactivity – Failing to commence operations or ceasing business for an extended period.
- Governance Failures – Lack of a qualified AML officer (CAMLO) or failure to follow risk management protocols.
- Sanctions & Criminal Activity – Involvement in money laundering, fraud, or terrorist financing.
- Regulatory Non-Cooperation – Ignoring requests, failing audits, or obstructing inspections.
- Financial Instability – Inability to meet obligations or demonstrate solvency.
Penalties for violations can include fines of up to CAD 2 million for businesses and up to CAD 500,000 for individuals, depending on the severity of the breach. Our team ensures full compliance with FINTRAC and RPAA to help businesses avoid penalties and maintain their registration.
Get in touch with us
Contact us for more information
We can provide a step by step overview with timeframes and budget break-down after gathering the preliminary project information. Our track-record in setting up MSB registrations in Canada is backed by hundreds of projects as we follow a thorough checklist to confirm that all legal requirements are met. Please contact us through the contact form below and we will get back to you with further information.
Contact details
Please contact us to be connected with our country manager or to schedule a meeting.
10 King Street East, Toronto, ON, M5C 1C3