Online Webinar: Registration of Existing MSBs with the Bank of Canada under RPAA Regulations
Services

Compliance Audit

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.

Why do you need a compliance audit

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.

Audit scope and focus areas

  • A review of your compliance policies, risk assessment, and training program to ensure they reflect your current business activities
  • An assessment of whether day-to-day operations align with your documented procedures and regulatory obligations
  • A review of how effectively your risk assessment identifies and addresses potential risks related to clients, services, and geography
  • Sampling of client files and transactions to verify that identification, recordkeeping, and reporting processes are being followed properly
  • A review of reports such as suspicious transactions, large cash transactions, and electronic funds transfers (where applicable)
  • An evaluation of your ongoing monitoring practices, especially for higher-risk clients
  • Staff interviews or discussions to gauge awareness of compliance responsibilities and procedures
  • A written report summarizing the findings, recommendations, and practical next steps to improve your compliance framework

Why Advapay?

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.

Schedule a 30 min call with us