Among the requirements for obtaining an MSB license in Canada there are no special amount for Authorized capital. This is a huge benefit compared to EMI licenses in some EU countries where the capital of your company must be 350 000 euros, but it is advisable to deposit and pay a certain amount of the authorized capital in order to show the regulator the seriousness of intentions for business planning and development.

Canada’s financial and banking system is considered one of the most reliable in the world and it has one of the best environments for business as itself. Canada now has the 9th largest economy in the world and is considered one of the best places to start a business with an environment and tax system that is in place for healthy and stable business growth and development. The payment systems in Canada, as well as the banks, play an important role in the financial sector. The government of Canada set fairly loyal requirements for the companies intending to provide financial services, thereby attracting not only local citizens but also foreigners in the development of the financial sector. These are the main reasons why you should obtain the MSB (money service business) license in Canada.

The process of obtaining the MSB license in Canada may take from 2 to 3 months. This is quite fast compared to another financial licenses you can get in Europe. For example, the service time for obtaining an EMI-license in some European country is usually from 6 month till 1 year. The time you will spend on bureaucracy, you can use for developing your business instead. This is another compelling reason why you should obtain MSB license in Canada.

Company name – must contain at least two words, one of them should describe the main business activity of the company, for example, “payments”, “remittance” etc. Abbreviations are not accepted.

Registered address – for companies managed and owned by a non-resident of Canada the most convenient province for company formation in British Columbia with a commercial address in Vancouver.

Capital – minimum capital is not determined by the supervising authority, but it is advisable to deposit and pay a certain amount of the authorized capital in order to show the regulator the seriousness of intentions for business planning and development.

Management – at least one director private person with experience in the financial sphere has to be appointed at the stage of incorporation, and a qualified compliance officer as well as a sound AML/CFT program and compliance system should be appointed and in place at the stage of starting operational activity of the company. Directors and AML responsible people do not have to be local if the company is registered in British Colombia or Ontario.

Compliance reporting – a company registered with FINTRAC has to complete reports about certain types of transactions according to the developed internal compliance program, reports include information about suspicious transactions, electronic fund transfer reaching specific limits, large cash transactions reaching specific limits, terrorist property.

Ownership – at least one person (legal or private).

Atrium Legal Lab will complete your Canada company registration within 1 week after receiving required documents.

Our Business Development Team will draft the business plan and AML/CFT policy within 2 weeks.

Thereafter, we will submit the license application to FINTRAC and attain the license within 4 weeks.

Once the license is attained, Atrium’s banking team will work on corporate bank account opening immediately.

On average, the engagement will be completed within around 3 to 4 months.

How do you report to FINTRAC?

Reporting entities can send their reports electronically to FINTRAC provided if you own the technical capabilities to do so. However, terrorist property report or where technical capabilities are not met for the other reports can be submitted in written.

What are the deadlines for the various reports?

The deadlines differ from reports to reports. For electronic funds transfer reports, they should be sent no later than 5 working days to FINTRAC. For suspicious transaction reports, they should be sent no later than 30 calendar days from where it can be determined with reasonable suspicion that the attempted transaction is possibly part of a financial crime. As for large cash transaction and casino disbursement reports, they should be submitted no later than 15 calendar days.

What will happen to the reports I submit?

The reports submitted will be carefully analyzed by FINTRAC to evaluate whether there are any possible threats of financial crimes. Each report is retained for 10 years by FINTRAC.

Will any fees be charged during reporting?

FINTRAC does not charge any fees – be it during registration, or further to file a report.

Is reporting incomplete suspicious financial transaction necessary?

Yes, you must still report an attempted transaction if you have sufficient evidence to back up or suspect that it is a possible case of financial crime.

Must I report any terrorist property to other authorities?

Yes, under the Criminal Code, you are mandated to relay any of such information or transaction to the RCMP, Anti-Terrorist Financing Team and CSIS Financing Unit.

Does FINTRAC freeze funds?

No, FINTRAC does not freeze or seize any funds.

Will the privacy of my clients be protected?

The Privacy Act strictly regulates how FINTRAC can use and disclose information collected during reporting. This means that the personal information collected from you will be protected from any unauthorized disclosure and can only be disclosed where there are reasonable grounds to suspect that the transaction is possibly linked to a financial crime.

What are the penalties involved?

An administrative monetary penalty will be issued for any non-compliance cases. However, it is to note that the penalty is not the first solution to non-compliance. Rather, FINTRAC will work together with you to correct the non-compliant behavior before considering charging any penalty.

What is the difference between a civil and criminal penalty charged?

Under the PCMLTFA, both penalties apply but are meant for differing purposes. A criminal penalty is mainly adopted to punish any wrongdoing and will include fines, imprisonment or both. While an administrative monetary penalty is used strictly against compliance violations. It will involve an incentive to take up corrective actions. FINTRAC will not be able to concurrently pursue both punishments.

Project management

This service assures our support and guidance throughout the process of obtaining your MSB registration approval, including the setup of a new company in Canada in any of the 10 Canadian provinces, except Quebec (which requires a separate and distinct registration with the AMF). A member of the Pay Compliance team will be present at the FINTRAC interview and help guide you through the process. One of the main advantages to acquiring a Canadian MSB license is the short licensing process (3-4 months).

Corporate concierge

From corporate changes to certifications to authorisations to reports – we will deal with every local requirement for you, so that you can focus on the operations.

Compliance support

We will provide a full compliance support to you including design/upgrade of policies, procedures, questionnaires, and forms to meet regulatory requirements; support client on-boarding, AML, and KYC checks; liaise with regulators during regulatory examinations, investigations, and post examination remediation; Ad hoc compliance advice, regular compliance reviews, personalised one-to-one training, handling of all correspondence and statutory filings with regulators.

Compliance programme

o comply with the Canadian regulation, a compliance program must be put in place for your company, which will be reviewed by FINTRAC. We can offer a written AML/CFT compliance program that meets Canadian and international standards customised for your business operations.

Risk assessment

We will prepare your risk assessment by considering elements of your business, clients and/or business relationships to identify the impact of possible ML/TF risks, and to apply controls and measures to mitigate these risks.

Clear banking

We will prepare your risk assessment by considering elements of your business, clients and/or business relationships to identify the impact of possible ML/TF risks, and to apply controls and measures to mitigate these risks.

Compliance officer recruitment

As all companies require a Compliance Officer, we will offer support in connecting clients with qualified and experienced candidates who will be equipped with the necessary knowledge about the Act and its associated regulations to ensure that your business remains compliant.