The Canadian MSB licence, also known as a Money Services Business licence, is a permit issued by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) that authorizes a business to engage in activities that involve the transmission of money or monetary value. Activities allowed with such licence include money transfers, currency exchange, cheque cashing, and certain other services related to money transfers.
To be eligible for a MSB licence in Canada, the applicant must be a Canadian resident and must be registered with FINTRAC as a Money Services Business. In order to obtain a MSB licence, applicants must meet certain financial and legal requirements.
Applicants must be able to demonstrate their financial soundness, as well as their ability to comply with anti-money laundering and counter-terrorist financing regulations. Additionally, applicants must have a physical presence in Canada, must have a designated compliance officer, and must have a sound anti-money laundering policy and procedure in place. The process to obtain a MSB licence in Canada is relatively straightforward.
Applicants must first register with FINTRAC and submit a complete application package.
The application package must include a Form F2 (a business profile form), a copy of the most recent financial statements of the applicant, and a detailed description of the business activities the applicant intends to engage in. Once the application package is complete and submitted, FINTRAC will review the application and may request additional information or clarification.
Upon FINTRAC’s review, the applicant will receive a notification of whether the application was approved or rejected. If approved, the applicant will receive the MSB licence and must adhere to the conditions outlined in the licence.
The entire process of applying for and obtaining a MSB licence in Canada generally takes between three and six months, depending on the size and complexity of the business.
Obtaining a MSB licence in Canada is a complex process that requires careful consideration of the relevant regulations and requirements. For assistance in determining whether a MSB licence is the right option for your business, and for help in navigating the application process, contact us for professional consulting around EMI licencing in any jurisdiction. Our experienced team of professionals can help guide you through the process and ensure that your application is successful.