Canada MSB Registration (FINTRAC): How to Operate Money Services in Canada

FINTRAC MSB Registration Canada: Requirements, Timeline and How to Apply

If your business plans to provide currency exchange, money transfers, remittance services, or cryptocurrency exchange/transfer services to Canadian customers, you will usually need to register with FINTRAC as a Money Services Business (MSB) (or as a Foreign MSB if you are based outside Canada).

This is not a box-ticking formality. In Canada, FINTRAC MSB registration is the regulatory foundation that allows you to operate money services legally and demonstrate to banks, payment partners and counterparties that you are compliant, credible and properly governed.

Buckingham Capital Consulting (BCC) is a leading regulatory consulting firm with over 15 years’ experience supporting regulated payment businesses across the UK, Europe and international markets. Working alongside specialist Canadian counsel where required, we support businesses through FINTRAC MSB registration end-to-end, including compliance programme build-out, application management, bankability preparation and ongoing compliance support.

What FINTRAC MSB registration allows you to do

FINTRAC MSB registration authorises you to provide regulated money services in Canada. Depending on your business model, this commonly includes:

• exchanging currencies for customers

• making domestic or international money transfers (remittance)

• issuing or redeeming money orders or similar instruments

• operating cryptocurrency exchange services

• facilitating cryptocurrency transfers for customers

Registration applies whether you operate from Canada or serve Canadian customers from abroad. If your customers are in Canada and you are offering MSB services to them, you should assume that registration applies unless confirmed otherwise.

In practice, registration also plays another important role. It is often the first item banks and payment partners ask for. Without registration, most firms struggle to open or maintain operational bank accounts, access payment providers, or progress institutional partnerships.

Who must register (MSB vs Foreign MSB)

FINTRAC registration is required for two main categories of business:

Canadian MSB

You operate from within Canada and provide money services.

Foreign MSB (FMSB)

You are based outside Canada but direct MSB services to Canadian customers.

Foreign MSB requirements are especially relevant for international fintech and crypto businesses. Many firms assume that having no physical presence in Canada removes the requirement. That is often not the case. If you target Canadian customers, onboard Canadian users, or provide services into Canada, you may fall within FINTRAC’s scope.

The key point for decision-makers is simple: this is driven by your activity and customer base, not only by your location.

What FINTRAC MSB registration actually means

FINTRAC registration brings your firm into Canada’s AML and counter-terrorist financing framework under the PCMLTFA. You are essentially confirming that:

• your ownership and governance is transparent

• you have a credible compliance function

• you have controls to reduce money laundering and terrorist financing risk

• you can meet ongoing obligations as a supervised business

FINTRAC registration is not a banking licence. It does not on its own allow you to take deposits or operate like a bank. However, it is the permission required to offer money services legitimately, and it is often the gateway to being treated as a serious and bankable counterparty.

Your registration also appears in FINTRAC’s public MSB registry, meaning customers and counterparties can verify your status.

What FINTRAC expects before you apply

FINTRAC’s expectations are not complicated, but they do need to be properly implemented. The regulator will not be impressed by generic templates or vague descriptions of how you operate.

In most successful applications, the applicant has clarity on:

1) Business model and service scope

You must clearly describe what you do, what services you offer, and how money or crypto flows through the product.

2) Governance and accountability

You must designate a competent compliance lead with appropriate authority and demonstrate that compliance is resourced and taken seriously.

3) A workable AML compliance programme

FINTRAC expects a compliance programme that is tailored to your risks and practical enough to operate day-to-day. This typically includes policies and procedures, a risk framework, training, monitoring and escalation procedures, and recordkeeping arrangements.

The companies that face delays are usually the ones who submit an application without these foundations in place, then scramble reactively when clarification requests arrive.

How long does MSB registration take?

A typical MSB registration process has two components:

Preparation

Usually 4 to 8 weeks, depending on complexity, ownership structure, and how developed the firm’s compliance framework already is.

FINTRAC review

Typically 8 to 16 weeks, depending on whether FINTRAC requests additional information or clarification.

In practical terms, businesses should plan for approximately 3 to 4 months end-to-end, with the understanding that well-prepared submissions progress materially faster.

The FINTRAC MSB registration process (high level)

FINTRAC registration is managed online and generally follows this flow:

1. pre-registration / eligibility stage

2. completion of the FINTRAC registration submission

3. submission of supporting documentation

4. FINTRAC review and clarification questions (if any)

5. registration confirmed and number issued

6. MSB listed on the public registry

The quality of the submission is what controls the timeline. FINTRAC generally does not penalise firms for being early-stage. It does, however, expect the application to be complete, consistent, and aligned to how the business truly operates.

Why businesses fail (and what FINTRAC focuses on)

Most MSB problems are self-inflicted. The common issues we see include:

• service scope described vaguely without operational clarity

• inconsistent statements across application sections

• weak compliance governance (compliance officer has no authority)

• compliance programme that exists only on paper

• failure to demonstrate risk controls for higher-risk products or corridors

In other words, businesses fail when MSB registration is treated as a form. FINTRAC views it as a supervised regulatory perimeter.

How Buckingham Capital Consulting supports FINTRAC MSB registration

Most founders and executives do not want to become FINTRAC specialists. They want confidence that the registration will be handled correctly and that they will not have to rebuild the compliance programme later under pressure.

BCC supports MSB applicants on a full lifecycle basis:

1) MSB eligibility and scope assessment

We assess your model against FINTRAC categories and confirm whether MSB or Foreign MSB registration applies. This removes uncertainty and avoids wasted time.

2) Application preparation and submission management

We prepare and manage the submission, coordinate documentation, ensure consistency across the narrative, and handle clarification requests efficiently.

3) AML compliance programme build-out

We develop MSB-ready compliance frameworks that are credible and operationally realistic, aligned to your products, customers and jurisdictions.

4) Bankability support

FINTRAC registration and banking are linked commercially. We support the documentation and governance that banks and payment partners expect to see, reducing delays and friction when onboarding.

5) Compliance-as-a-Service (ongoing)

For firms that want to stay lean, we provide ongoing retained support to keep the compliance programme effective, updated, and examination-ready.

Where appropriate, we work with specialist Canadian counsel to ensure local legal considerations are addressed cleanly and efficiently.

Frequently asked questions

How long does FINTRAC MSB registration take?

Most firms should plan for roughly 3 to 4 months end-to-end, depending on preparation and FINTRAC queries.

Can we operate while registration is pending?

No. Registration should be in place before MSB activities begin.

Do crypto businesses need MSB registration?

If the business provides crypto exchange or crypto transfer services to Canadian customers, registration may be required.

Next step: confirm MSB scope and proceed confidently

If Canada is a strategic market for your business, the priority is to establish the correct regulatory perimeter early and build a compliant foundation that banks and counterparties will accept.

Buckingham Capital Consulting can support your FINTRAC MSB registration from strategy through to approval and ongoing compliance, ensuring the process is handled professionally, efficiently, and without unnecessary burden on management.

Email us at info@buckinghamcapitalconsulting.co.uk or call 0207 866 2512