How to register MSB

The registration process is quite simple, and typically, FINTRAC does not deny registration if all formal requirements are met and a comprehensive description of the business and the eligibility to become an MSB are duly justified. The entire process usually takes from 2 to 3 months.

Incorporation

First, you need to register your company. Canada offers the opportunity for either federal or provincial incorporation. We recommend incorporating the company in one of the provinces that does not require local residency for directors. Incorporating federally will require you to have a director with Canadian residence, but it won’t add any additional value unless you plan to have brick-and-mortar locations across Canada.

What you need to incorporate:

Company name
Legal address and records office
Articles of incorporation
Statutory documents defining ownership and setting internal by-laws

Incorporation occurs online and takes one day.

Obtaining an MSB registration

The process of obtaining MSB registration currently takes from 2 to 3 months and consists of three main stages:

Pre-registration request
Completing a self-assessment form and providing a business model description
Application submission on the MSB online portal and getting final approval.

1 mo

2 mo

3 mo

4 mo

Advapay Canada offers a full range of services for MSB registration in Canada.

MSB in Canada: main requirements

Very diverse businesses use MSBs, including neo-banks and e-wallets, crypto-fiat wallets, remittance and money transfer operators, card issuers and acquirers. Here are some cases where MSBs are particularly well-suited:

Legal entity
Corporation is the most common type of legal entity established for the purpose of obtaining an MSB license. You may choose to incorporate a company in any Canadian province or federally – it will not affect the process of obtaining the license.
Office
Having a brick-and-mortar office at the registration stage is not required. However, the company must have a legal address in Canada, which can be, for example, the director’s home address. However, it is recommended to have a commercial address. Virtual offices are not accepted by the regulator.
Personnel
At the registration stage, a Compliance Officer should be appointed – preferably with experience in the financial sector in Canada.
Beneficiaries
You must disclose some information about beneficial owners, such as their name, place of birth, country of residence.

MSB in Canada: documents and information submitted

01
Name of the company that is going to obtain the license
02
Company registration information
03
Legal (business) address of the company
04
Contact details of the company representative
05
Description of the services and activities the company plans to provide
06
Information about the company’s bank account (if applicable)
07
Information about your Compliance Officer
08
Staff headcount
09
Information about the owners of your MSB and senior management – for example, their name and date of birth (about the company directors and each person who owns or controls 20% or more)
10
Estimate of the expected total amount of transactions per year for each MSB service you provide
11
Detailed information about each branch
12
Details about each MSB agent

How to register an MSB

Incorporation

Obtaining an MSB registration

MSB in Canada: main requirements

MSB in Canada: documents and information submitted

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