A compliance audit, also known as an effectiveness review, is one of the key ongoing regulatory requirements for MSBs in Canada. FINTRAC requires this type of audit at least once every two years, but it’s considered best practice to perform it annually.
In addition to meeting legal requirements, a compliance audit helps businesses identify gaps in their compliance policies and procedures, reducing the risk of costly mistakes in the future. The main goal of the audit is to ensure the MSB is fully compliant with Canadian regulations and able to effectively detect and prevent money laundering and terrorist financing. In many cases, a compliance audit report is also required by reputable financial institutions when opening correspondent accounts for MSBs.
An audit report from a reputable firm can significantly improve your chances of opening client fund accounts with banks and other financial institutions in Canada and worldwide.
Advapay is a leading FinTech consultancy and compliance partner based in Canada, with active operations and offices in the EU and UK. This international footprint gives us a deep understanding of regulatory expectations across multiple jurisdictions. We provide practical, forward-thinking guidance to help you align your compliance program not only with FINTRAC requirements, but also with the expectations of MSB-friendly banks in Canada, Europe, and beyond. We’re also available to support the implementation of any recommended improvements to your compliance framework.
