How to Obtain a Canada MSB Licence

A practical guide to Money Services Business registration with FINTRAC

A Canada MSB licence allows a business to legally provide regulated financial services such as money transmission, foreign exchange, and payment services to customers in Canada. It is the gateway to operating payment platforms, remittance businesses, fintechs, and cross border payment providers in one of the world’s most stable and respected financial systems.

Registration as a Money Services Business with Canada’s financial intelligence regulator, FINTRAC, is mandatory before you begin operating. Banks, payment partners, and institutional clients will not engage with a business that is not properly registered.

MSB Licensing in Canada at a Glance

Who needs an MSB licence?

Any business that provides money transmission, foreign exchange, payment services, or similar financial services to customers in Canada.

Two types of registration:

• Canadian MSB for businesses with a place of business in Canada

• Foreign MSB for non Canadian businesses serving customers in Canada

Registration fee:

FINTRAC does not charge any fee to register as an MSB.

Regulator:

FINTRAC is the federal authority responsible for MSB registration, AML supervision, and enforcement.

Market access:

An MSB licence allows you to operate across all Canadian provinces and territories.

What Is a Canada MSB Licence

A Money Services Business licence is the regulatory status required under Canadian law for firms that move, exchange, or transmit money for customers.

MSB registration is not a prudential banking licence. It is an AML and regulatory registration that allows a business to lawfully provide financial services such as:

• Domestic and international payments

• Remittance services

• Currency exchange

• Payment platforms

• Cross border fund flows

Without MSB registration, a business cannot lawfully operate or open accounts with Canadian banks.

Who Must Register as an MSB

You must register if you provide one or more regulated financial services to customers in Canada, including:

1. Money transfer or remittance services

2. Foreign exchange

3. Issuing or redeeming payment instruments

4. Operating payment platforms

5. Processing or settling payments

A business based outside Canada must register as a Foreign MSB if it directs and provides these services to people or businesses in Canada.

What FINTRAC Requires in an MSB Application

FINTRAC registration focuses on who owns and controls the business, how money moves, and how financial crime risk is managed.

1. Ownership and control

You must disclose:

• All directors and senior officers

• All shareholders or controllers with 20 percent or more ownership or control

• Full corporate ownership and control structure

Criminal record checks are required for directors, senior management, and all 20 percent controllers.

2. Business and transaction profile

FINTRAC requires:

• Description of all services provided• Estimated annual transaction volumes

• Where customers are located

• How funds move through the business

• Any agents or intermediaries acting for you

3. Compliance officer

You must appoint a compliance officer responsible for:

• AML and counter terrorist financing

• Reporting to FINTRAC

• Oversight of controls and monitoring

This person must be identifiable and senior enough to exercise real authority.

4. Compliance programme

You must implement:

• Written AML and risk assessment• Customer identification and verification procedures

• Transaction monitoring

• Suspicious transaction reporting• Record keeping• Ongoing staff training

FINTRAC supervises MSBs through desk reviews and inspections.

MSB Registration Fees

FINTRAC registration fee:

None. Registration is free.

Canada is one of the lowest cost G7 jurisdictions to obtain a regulated payments licence.

How Long It Takes?

FINTRAC does not publish fixed processing times. In practice:

• Well prepared applications can be registered within a few weeks

• Applications with unclear ownership, missing criminal checks, or inconsistent data can take months

The biggest factor is the quality and completeness of the initial submission.

How the Canada MSB Process Works

1. Submit a pre registration request to FINTRAC

2. FINTRAC issues secure access to the registration portal

3. Upload ownership, control, and business information

4. Provide criminal record checks and supporting documents

5. FINTRAC reviews and may request clarifications

6. Registration is issued once FINTRAC is satisfied

You must be registered before you start operating.

Most Asked Questions About Canada MSB Licensing

How much does a Canada MSB licence cost?

FINTRAC does not charge any registration fee. Your cost is mainly compliance, documentation, and operational setup.

How long does MSB registration take?

Simple cases can complete within weeks. More complex ownership or international structures take longer.

Do I need a Canadian company?

No. Foreign businesses can register as Foreign MSBs but must appoint a Canadian representative.

Does MSB registration cover all of Canada?

Yes. FINTRAC registration is federal and valid across all provinces and territories.

How experienced is Buckingham Capital Consulting?

We have over 15 years of experience helping financial services and payment businesses secure licences and operate compliantly across multiple jurisdictions.

Buckingham Capital Consulting

Buckingham Capital Consulting is a global regulatory advisory firm specialising in banking, e money, cryptoasset, and payment services. We have been helping financial services and digital asset businesses secure regulatory licences and operate compliantly for over 15 years.

We work with exchanges, custody providers, brokers, wallets, and payment platforms across Europe, the UK, the US, Middle East, and Asia Pacific.

For assistance with a Canada MSB licence, call 020 7866 2512, email info@buckinghamcapitalconsulting.co.uk, or visit www.buckinghamcapitalconsulting.com.