Canada MSB License
Canada MSB License
Canada MSB license is one of the most favourable financial license recently. License is issued and regulated by Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). As a adaptable financial license for Forex dealers, it's definitely easy to apply, cost effective and simple maintanence.
Before beginning to operate in Canada, you must register your money services business (MSB) with FINTRAC. Even if you are registered as an MSB with a province or territory, you still have to register with FINTRAC.
You are an MSB if you are in business in Canada to offer any of the following services to the public:
Compliance program:A comprehensive and effective compliance program is the basis of meeting all of your obligations under the PCMLTFA and associated Regulations. During a FINTRAC examination, it is important to demonstrate that the required documentation is in place and that employees, agents, and all others authorized to act on your behalf are well trained and can effectively implement all the elements of your compliance program. A senior officer must approve the compliance program and the compliance officer must have the necessary authority to carry out the requirements of the program. You must:
Know your client:As a money services business, you must verify the identity of clients for certain activities and transactions according to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR). Part of knowing your client includes following the methods to identify clients, as well as conducting certain additional activities as listed below:
ReportingMoney services businesses are required to complete reports about certain transactions and property and submit them to FINTRAC. Financial transaction reports are critical to FINTRAC's ability to analyze transactions in order to develop financial intelligence that is disclosed to law enforcement and partner agencies. Therefore, the quality of your reporting will be reviewed by FINTRAC in examinations.
Within 30 days of determining that there are reasonable grounds to suspect that a transaction or an attempted transaction is related to the commission or attempted commission of a money laundering or terrorist financing offence, you must submit a suspicious transaction report (STR).
When you know that property in your possession or under your control is owned, controlled by or on behalf of a terrorist or a terrorist group, you must disclose this information to the Royal Canadian Mounted Police (RCMP) and the Canadian Security Intelligence Service (CSIS) and submit a Terrorist Property Report to FINTRAC without delay.
Large cash transactions:
When you receive $10,000 CAD or more in cash (including taxes or other fees) either in a single transaction or in multiple transactions within a 24-hour period, you must submit a Large Cash Transaction report electronically or by paper within 15 calendar days.
Electronic funds transfers:
When you send or receive client-initiated instructions to transfer $10,000 CAD or more internationally; either in a single transaction or in multiple transactions within a 24-hour period, you must submit a SWIFT/non-SWIFT Electronic Funds Transfer report electronically or by paper within 5 business days
If you have a computer and an internet connection, you must submit all reports to FINTRAC electronically, except Terrorist Property reports, which can only be submitted on paper.
Duration to set up: 1 month