FINTRAC MSB refers to a Money Services Business (MSB) registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Why Apply for a FinTrac MSB License?

1. Legal Compliance: Operating a money services business in Canada (such as remittances, currency exchange, payment processing, etc.) requires registration and licensing with FINTRAC to ensure legal compliance.
2. Credibility Enhancement: Obtaining an MSB license can enhance a company's credibility and customer trust, demonstrating adherence to stringent anti-money laundering (AML) and anti-terrorist financing (ATF) regulations.
3. Business Expansion: Having an MSB license allows for the legal operation of money services in Canada, facilitating business expansion and market entry.

FinTrac MSB Application Requirements:

The conditions for applying for an MSB license are relatively stringent and primarily include:

1. Company Registration: The applicant must be a legally registered Canadian company and provide proof of registration.
2. Background Checks for Management: The company's senior executives and major shareholders must pass background checks to prove the absence of criminal records and financial misconduct.
3. Business Plan: Provide a detailed business plan outlining the types and scope of money services the company intends to offer.
4. Compliance Plan: Develop and submit an AML/ATF compliance plan, including procedures for customer due diligence (CDD) and reporting suspicious transactions.
5. Financial Condition Proof: Provide proof of the company's financial status to ensure it has sufficient funds and financial capability to carry out money services business.
6. Address Proof: Provide the company's actual business address and contact information in Canada.

FinTrac MSB Application Process

1. Prepare Materials: Prepare the required application materials according to FINTRAC’s requirements, including company registration documents, business plan, compliance plan, etc.
2. Submit Application: Submit the application materials through the FINTRAC official website or by mail.
3. Review: FINTRAC reviews the submitted application materials and may request additional information or conduct interviews.
4. Approval: Once the review is passed, FINTRAC will issue the MSB license to the applicant, who must then regularly submit reports and undergo compliance reviews as required.

Which Businesses Need to Apply for a FinTrac MSB License?

1. Currency Exchange Providers: Businesses offering currency exchange services, such as foreign exchange.
2. Remittance Service Providers: Businesses offering domestic or international remittance services, including funds transfers via electronic means or other methods.
3. Cheque Cashing Services: Businesses offering cheque cashing services, including cashing traveler’s cheques and other types of cheques.
4. Payment Processors: Businesses processing payment transactions, especially those involving electronic and online payments.
5. Cryptocurrency Service Providers: Businesses offering services related to virtual currencies (e.g., Bitcoin), such as exchange and transfers. As of June 1, 2019, cryptocurrency service providers must also register as MSBs with FINTRAC.
6. Businesses issuing or redeeming traveler’s cheques, money orders, or drafts.

Specific Types of Businesses that Need to Apply for an MSB License Include but are not Limited to:

1. Currency Exchange Bureaus
2. Money Transfer Companies
3. Cheque Cashing Services
4. Prepaid Card Providers
5. Cryptocurrency Exchanges and Wallet Services
6. Online Payment Processors

These businesses must register with FINTRAC and comply with Canadian AML/ATF regulations, including establishing and maintaining AML/ATF compliance programs, conducting customer due diligence (CDD), and regularly submitting suspicious transaction reports (STR) and large cash transaction reports (LCT) to FINTRAC.

FinTrac MSB Fees and Processing Time

The fees for FinTrac MSB include an application fee and annual maintenance fees.

Application Fee: $10,000

Annual Maintenance Fee: $3,000 per year (no fee for the first year)

Processing Time: 4-6 weeks

Businesses must ensure that they have completed FINTRAC registration and obtained the MSB license before operating to avoid legal risks and penalties.

FinTrac MSB Official Website: https://fintrac-canafe.canada.ca/msb-esm/msb-eng