Why license a money services business in Canada?
Canada offers a credible, stable G7 footing with a refreshingly defined AML layer: FINTRAC MSB registration carries no government registration fee and follows a relatively light, well-defined process compared with full prudential licensing. Because it is a registration rather than a discretionary licence, the path to market is clearer and more predictable, and foreign firms serving Canadian clients can register as a Foreign MSB without a Canadian establishment requirement for the MSB layer. The trade-off is that since 8 September 2025 many payment service providers need two federal registrations, the FINTRAC MSB registration for AML and the Bank of Canada PSP registration under the RPAA for operational risk and fund safeguarding, which are related but legally distinct regimes.
No government registration fee. FINTRAC does not charge a fee for MSB registration, which keeps the AML-layer cost of entry low.
Registration, not a discretionary licence. The FINTRAC MSB layer is a defined registration rather than a discretionary licence, giving a clearer, more predictable path to market.
A credible G7 jurisdiction. Canada is a stable, well-regarded G7 market, a strong signal to banks and institutional partners.
Foreign firms can register. Firms outside Canada that serve Canadian clients can register as a Foreign MSB without a Canadian establishment requirement for the MSB layer.
A relatively light, defined process. Compared with full prudential licensing, the FINTRAC MSB process is lighter and well-defined.
Clear renewal cadence. MSB registration is renewed every two years, a simple and predictable ongoing obligation.
The regimes and what they cover
We map your model to the correct FINTRAC and Bank of Canada requirements:
FINTRAC MSB Registration (AML/CTF)
Registration with FINTRAC that brings you into Canada’s AML/CTF framework. It must be in place before operating and is renewed every two years.
Foreign MSB (FMSB)
Firms outside Canada that direct and provide MSB services to clients in Canada register as a Foreign Money Services Business with FINTRAC.
Foreign-Exchange Dealing
Dealing in foreign currency is an MSB activity within the FINTRAC AML/CTF obligations.
Money Transferring & Remittance
Money transferring and remittance services fall within the FINTRAC MSB registration scope.
Dealing in Virtual Currency
Dealing in virtual currency, and issuing or redeeming money orders, are MSB activities captured by FINTRAC registration.
Bank of Canada PSP (RPAA)
Separately and distinctly, PSP registration under the Retail Payment Activities Act covers operational risk management, safeguarding of end-user funds, and incident reporting.
Note: Costs are indicative and may change with your requirements and regulations. Contact us for a tailored quote.