Canadian MSB license: advantages and features of obtaining in 2024

Canadian MSB (Money Service Business) License – is a special permission to provide financial services issued by the Canadian regulator FINTRAC (The Financial Transactions and Reports Analysis Centre of Canada).

The MSB license allows providing services to clients worldwide, except for countries that require mandatory local licensing. This makes MSB an excellent option for startups that want to quickly and cost-effectively enter the financial market.

What is an MSB license needed for:

• providing services for currency transfer, conversion, and exchange;
• conducting money transfers, including international, for both individuals and legal entities;
• carrying out cryptocurrency transactions;
• providing crowdfunding services;
• providing access to personalized e-wallets;
• providing merchant acquiring services.

Advantages of an MSB license in Canada

• Relatively fast processing times. The licensing process will take 2-6 months, while in Europe it will take 1-1.5 years. A Canadian license allows businesses to launch faster;
• ability to work with cryptocurrency forms. In European countries, a separate license is required for this activity, which requires additional time and money.
• it is enough to have one director and an AML manager, they can be non-residents of the jurisdiction;
• there are no requirements for a mandatory amount of authorized capital;
• the license is valid for 1 year. To renew it, the company must apply to FINTRAC before the expiration of the previous license.

Main stages of obtaining an MSB license in Canada

• Registration of a Canadian legal entity. The application specifies information about the company: name, legal address, description of activities, information about owners and directors;
• opening a bank account in the jurisdiction, to which the minimum capital will be deposited;
• creating a risk management system, internal AML/CTF policy.
• submitting an application and a set of documents for obtaining a license to the regulator;
• payment of state fees;
• passing a due diligence check.

How to obtain an MSB license in Canada?

If you need assistance in obtaining an MSB license in Canada, contact the specialists at IT-OFFSHORE.