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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:
  • Foreign exchange dealing: Conducting transactions where you exchange one type of currency (USD$ for CAD$) for another.
  • Money transferring: Transferring funds from one individual or organization to another using an electronic funds transfer network or any other method such as hawala, hundi, fei ch'ien, and chit.
  • Cashing or selling money orders: This may also include cashing or selling traveller's cheque or anything similar. This does not include cashing cheques made out to a particular individual or organization.

  • 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:

  • appoint a compliance officer responsible for the implementation and oversight of the compliance program;
  • develop and apply written compliance policies and procedures that are kept up to date and approved by a senior officer;
  • apply and document a risk assessment , including mitigation measures and strategies;
  • develop and maintain a written training program for employees, agents, and others authorized to act on your behalf;
  • review your compliance program (policies and procedures, risk assessment and training program) every two years for the purpose of testing its effectiveness.


  • 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:
  • When to identify individuals and confirm the existence of entities – Money services businesses;
  • Methods to verify the identity of an individual and confirm the existence of a corporation or an entity other than a corporation;
  • Business relationship requirements;
  • Ongoing monitoring requirements;
  • Beneficial ownership requirements;
  • Third party determination requirements; and
  • Politically exposed persons and heads of international organizations – Money services businesses.

    Reporting

    Money 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.

    Suspicious transactions:
    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).

    Terrorist property:
    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.


    Documentation Requirement:

  • Individual shareholder and director scanned copy of passport
  • Individual shareholder and director scanned copy of utility bills/ proof of address within three months
  • Shareholding company certificate, company registration and constitution
  • Shareholding company ultimate beneficial owner and director scanned copy of passport, utility bills/ proof of address within three months


  • UCG Services

  • Company formation
  • License application document preparation assistance
  • AML CTF program, compliance program and risk assessment
  • Provision of local compliance officer which is requested by FINTRAC
  • Application lodgment to FINTRAC
  • Maintanence after application success



  • Duration to set up: 1 month