Canada MSB License & FINTRAC Compliance | Register a Money Services Business in Canada. Trusted setup solutions from 2 weeks.
Our Canada based legal team provides company structuring, licensing and ongoing support services including banking advisory, legal & AML compliance.
An MSB registration in Canada covers a broad range of financial services, including but not limited to crypto exchange, foreign exchange and payment processing. Our Toronto based lawyers assist throughout the company formation, licensing and also with the ongoing regulatory compliance.
✔ Quick entry to market, no minimum capital requirements
✔ Limited local presence requirement (we provide full support)
✔ Covers crypto, payments, forex & remittances and more
✔ Stable and well-regulated financial environment
While the MSB registration process is relatively straightforward, ongoing compliance with anti-money laundering (AML) and reporting obligations remains essential. Our track-record is backed by hundreds of successful MSB licensing projects and our Canadian team holds vast experience in maintaining on-going regulatory compliance for leading fintech companies.
We evaluate your business model, services and regulatory needs to determine the best approach.
We prepare your MSB registration or acquisition application to FINTRAC, ensuring full compliance with AML/CTF regulations.
FINTRAC assesses your business structure, ownership and compliance measures. Our lawyer represents your interest.
Once approved, we may assist with ongoing compliance, transaction monitoring and regulatory reporting.
Unlike the EU’s MiCA CASP framework, Canada does not require substantial local substance or resident directors for MSB registration. Companies must appoint a Compliance Officer (CO) to oversee AML programs. We can provide an outsourced solution for a Canadian-resident fractional CO appointment.
RPAA-registered entities face additional oversight, including financial risk assessments, fund segregation and annual audits. We assist businesses in navigating the Canada MSB and RPAA registration process, ensuring compliance with FINTRAC and the Bank of Canada’s regulatory requirements.
An MSB registered with FINTRAC is primarily regulated for AML and CTF compliance. Registration allows businesses to offer:
The registration process includes submitting details on ownership, operational structure, compliance programs and financial activity. Once registered, the MSB must implement AML compliance policies, transaction monitoring and mandatory reporting to FINTRAC.
An MSB that registers under the RPAA with the Bank of Canada gains additional regulatory oversight. This allows the business to:
The RPAA framework introduces additional compliance measures, including fund safeguarding, operational risk management and financial reporting requirements. Businesses must maintain a risk framework, separate client funds from business accounts and submit annual reports and audits.
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
Setting up a Canada MSB with optional RPAA registration (for PSPs) is straightforward as our local lawyers take care of the full legal procedures on your behalf. We can also provide local substance building solutions. The company setup and all applications submissions can be completed remotely without travel.
* 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.
Yes. An MSB may serve global clients, provided it complies with Canadian AML/ATF obligations and any applicable foreign regulations.
Under our Platinum package the ready-made Canadian MSB solution can be transferred in 2 weeks. For other packages, the company formation takes 1-2 weeks; MSB registration with FINTRAC typically takes 8-16 weeks. RPAA registration with Bank of Canada takes on average 6-10 weeks. Indicative timeframes depend on the government authority workload.
An MSB is a Canadian entity registered with FINTRAC. An fMSB is a foreign entity that must also register if it offers money services to clients in Canada.
Yes, an MSB can provide well established (e.g. Bitcoin, Ethereum) crypto-asset related services, e.g. sending, receiving, or OTC exchanging. However, additional registrations with securities regulators will be needed, including but not limited to if the company
1) takes custody of clients’ crypto assets;
2) operates a custodial crypto exchange;
3) deals with smaller less-established crypto assets.
Activities such as lending, securities trading or investment services may require additional provincial or federal licenses and/or authorizations.
No. There is no Canadian residency requirement for the director and/or the compliance officer. Still, to meet local substance expectations of banks and financial institutions we can provide outsourced fractional positions.
No. A physical office is not mandatory, but a Canadian business address must be maintained for registration and correspondence. We can provide a virtual office solution.
In most cases yes, if the MSB is also RPAA registered. Funds must be properly segregated and safeguarded, with full compliance to AML/ATF controls. Note that the company cannot custody client crypto-assets as this will require additional registration with provincial securities regulators.
The company must submit suspicious transaction reports (STRs), large cash transaction reports (LCTRs), terrorist property reports (TPRs), and maintain KYC records in line with FINTRAC requirements.
The KYC and documentation requirements depend on the target shareholding and management structure of the Canadian company. Please contact our team for initial assessment and roadmap creation. >>
The legal framework is governed by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and the Retail Payment Activities Act (RPAA). Under PCMLTFA, crypto exchanges and payment providers must register as Money Services Businesses (MSBs) with FINTRAC, ensuring compliance with anti-money laundering (AML) regulations. RPAA, overseen by the Bank of Canada, applies to payment service providers, requiring operational risk management and consumer fund safeguarding. We assist businesses in obtaining MSB registration and RPAA compliance, preparing the necessary policies and managing the process to ensure full regulatory compliance.
For review and preparation of the licensing project we will ask for the following preliminary documentation:
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 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:
Instructions and Guidelines
Practical steps to identify and manage:
Further details about our compliance services you may find from our Compliance website section.
We provide substance solutions to meet FINTRAC and Bank of Canada (RPAA) compliance requirements, including assistance with setting up a local office and outsourcing a part-time fractional AML Compliance Officer (CO). Our services cover ongoing training, operational support and compliance management to ensure adherence to regulatory obligations.
Compliance Officer (CO) Responsibilities:
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:
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.
We can provide a step-by-step overview with timelines and budget breakdown after gathering the preliminary project information. Our track record in setting up MSB registrations in Canada is backed by hundreds of successful 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.
Please contact us to discuss your objectives with our country manager or to arrange an online meeting.
10 King Street East, Toronto, ON, M5C 1C3
