Canada MSB Licence: Go Live in 2 Weeks

Yes. A Canadian MSB may serve clients outside Canada, subject to Canadian AML/CTF obligations and any applicable laws or regulatory restrictions in the jurisdictions where its clients are located.

Under our Platinum package, a ready-made Canadian MSB can typically be transferred in around 2 weeks. For a new setup, company formation usually takes 1 to 2 weeks, while FINTRAC registration generally takes around 4 to 8 months. RPAA registration with the Bank of Canada typically takes around 3 to 6 months. All timelines are indicative and depend on the authorities’ workload and the specifics of the project.

An MSB is a Canadian business registered with FINTRAC to provide regulated money services. An fMSB, or foreign money services business, is established outside Canada but must register with FINTRAC if it directs covered money services to clients in Canada.

A Canada MSB has lower entry requirements, with no minimum authorised capital, no Canadian resident director requirement and no government application fee. FINTRAC registration can cover a range of fiat and crypto-related activities, while EU MiCA CASP requires local substance, authorised capital and a longer licensing process. A Canada MSB application typically takes around 4 to 8 months, or around 2 weeks through a ready-made acquisition, while EU MiCA CASP takes 6 to 10 months. The main advantage of MiCA is passporting across all 30 EU/EEA countries. The better route depends on your target markets, activities and operating model.

Yes. A Canada MSB can be used as an operating structure while an EU MiCA CASP application is pending, provided the Canadian entity operates within its own regulatory scope and does not rely on the pending EU authorisation. This can allow a fintech business to begin international activities while the EU licensing process continues. The two structures should be planned separately, with particular attention to client targeting, marketing restrictions and the activities carried out in each jurisdiction.

Yes. A Canada MSB can provide virtual currency exchange and transfer services, including exchanging fiat currency for virtual currency, virtual currency for fiat, exchanging one virtual currency for another, and transferring virtual currency on behalf of clients. In practice, MSB-only models are generally more straightforward where the business deals with well-established virtual currencies and does not operate a custodial trading platform.

The regulatory treatment depends on the specific business model and should be assessed before launch.

A Canada MSB registration does not automatically cover services such as lending, securities or investment activities, insurance, or other regulated financial services. Additional federal or provincial licences, registrations or authorisations may therefore be required depending on the business model and services offered.

No. A Canada MSB does not require a Canadian-resident director. The company can be owned and managed by non-residents. A Compliance Officer must be appointed for AML/CTF purposes, but Canadian residency is not required for that role either. Where local substance is commercially useful, for example for banking or operational purposes, we can provide Canadian-resident fractional support, including an outsourced Compliance Officer.

A Canadian MSB must have a place of business in Canada. For a Canadian corporation, this includes maintaining its Canadian corporate address and providing FINTRAC with the required information about its business locations. A separate staffed physical office is not necessarily required solely for FINTRAC registration, but stronger local substance can be important for banking, operational credibility and ongoing compliance. We can provide registered office, local office and compliance support as part of our Canada MSB compliance outsourcing services.

In many payment-service models, client funds may be held temporarily where the business is also registered under the RPAA and complies with the applicable safeguarding and operational-risk requirements. Client funds should be properly segregated and safeguarded in line with the relevant regulatory framework. Custody of client virtual currencies or operation of a custodial crypto trading platform may trigger additional provincial securities‑law requirements.

A Canadian MSB must comply with FINTRAC reporting and record-keeping requirements. Depending on the activity, this can include Suspicious Transaction Reports (STRs), Large Cash Transaction Reports (LCTRs), Large Virtual Currency Transaction Reports (LVCTRs), Terrorist Property Reports (TPRs), and other prescribed reports. The company must also maintain required client identification, transaction and compliance records in line with FINTRAC requirements.

The required documentation depends on the ownership, management structure and planned activities of the Canadian company. In most cases, we will request identification documents for shareholders and directors, information on beneficial owners, CVs for key participants and supporting corporate information. Additional documents may be required depending on the structure and services. We provide a tailored document checklist following the initial project assessment.