Canadian MSB License for Payments and Crypto

Canada is one of the jurisdictions currently recommended by ECOVIS for the registration and licensing of international money services and payment business. Canadian license also allows crypto related services having the same MSB licensed company.

ECOVIS office in Canada together with other ECOVIS offices in more than 90 countries around the world offer comprehensive solutions for money service business licensing in Canada.

The Difference Between Canadian MSB and FMSB

The substantial difference between MSB Money Service Business and FMSB Foreign Money Services Business lies in the geographical market. MSB license is for operations in Canada and FSMB license is for operations outside of Canada. To obtain an MSB license company needs to be a registered legal entity incorporated in Canada and have a physical presence in Canada. Non-Canadian registered companies may receive Canadian MSB license allowing them serving Canadian residents and other clients in any other country, opening segregated client funds accounts in other financial institutions and processing payments in all currencies. MSB and FMSB have different registration statuses in the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Canadian MSB/FMSB license covers the following financial services:

• currency exchange
• the transfer of funds
• the issuance or redemption of traveler’s cheques and other financial instruments
• money orders or bank drafts
• cheque cashing
• the operation of automated teller machines

In addition to the traditional payment services MSB/FMSB licence also covers crypto services such as virtual currency exchange and processing. It makes the Canadian MSB license a “crypto license”.

Requirements to Obtain MSB or FMSB License in Canada

To obtain a Money Services Business (MSB) or Foreign Money Services Business (FMSB) license in Canada certain requirements established by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) need to be met. Obtaining MSB licence a legal entity incorporated in Canada and have a physical presence in the country needed. Policies and procedures complying with anti-money laundering and combating the financing of terrorism regulations are needed as well.

FMSB licenced company needs to meet similar requirements to those for an MSB licence. Also, there are additional criteria specific to foreign entities only. Company needs to demonstrate that it is properly registered in its home jurisdiction and have appropriate policies and procedures in place.

Both MSB and FMSB licences require applicants to undergo a thorough background check. This includes providing information about the individuals who own or control the business, as well as any directors, officers, partners, or shareholders with significant ownership interests. It is important to ensure that all individuals associated with the business have a good reputation and are not involved in criminal activity.

ECOVIS Experience in Finance Institution Licensing

ECOVIS International consulting network operates in more than 90 countries around the world. We licensed over 30 payment, money service and electronic money businesses in different jurisdictions. ECOVIS is currently one of the most experienced financial advisors for money service and payment business licensing. ECOVIS provides all necessary licensing services, including preparation of licensing documentation, financial part of the application, representation in the regulatory authority during the licensing procedure, company incorporation, office registration, advice on AML, IT, HR, compliance, and other issues arising during the business incorporation. When the license is issued, ECOVIS offers accounting, regulatory reporting, audit, compliance and legal services for the operational business.

More licensing options:

Electronic Money Institution

Payment Institution