COREDO > Licensing > Financial Licences in the EU > Payment Licence in Canada: MSB Registration with FINTRAC and PSP Registration with the Bank of Canada

Payment Licence in Canada: MSB Registration with FINTRAC and PSP Registration with the Bank of Canada

What Is a Payment Licence in Canada

A payment licence in Canada means registering your company with FINTRAC as a money services business (MSB) and, if you handle electronic payments, also with the Bank of Canada as a payment service provider (PSP). With it, you can legally transfer money and exchange currencies and cryptocurrency for clients in Canada.

COREDO has been operating since 2016 and takes on the entire launch: structure, registrations, compliance, bank and crypto accounts, IT platform and team. You receive a ready company that can start taking on clients.

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Regulatory Framework: FINTRAC, the Bank of Canada, PCMLTFA and RPAA

A payment business in Canada works with two federal regulators.

FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) maintains the Money Services Business registry and supervises compliance with AML/CFT rules. The regime is built on the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). A company that provides MSB services in Canada registers with FINTRAC before it starts operating.

The Bank of Canada has been registering payment service providers (PSPs) under the Retail Payment Activities Act (RPAA) since 1 November 2024. If your company performs payment functions for electronic funds transfers, it must be on the Bank’s register before its first transaction.

Since 8 September 2025, every PSP must have a risk management framework, and a PSP that holds client funds must also have a framework to protect them (safeguarding).

Licence Details: What MSB and PSP Registration Allows

Together, the two registrations open the Canadian market to fiat and crypto payments, and here is what they let you do.

MSB services (FINTRAC registration)

Foreign exchange
Money transfers through any channel, including electronic funds transfer networks
Issuing and redeeming money orders, traveller’s cheques and similar instruments
Virtual currency services: exchanging and transferring cryptocurrency
Crowdfunding platform services

PSP payment functions (Bank of Canada registration)

Opening and maintaining user accounts for electronic funds transfers
Holding user funds until they are withdrawn or transferred
Initiating an electronic funds transfer at the user’s request
Authorising transfers, transmitting and receiving payment instructions
Clearing and settlement

Requirements for Obtaining a Payment Licence in Canada

Regulators look at the company structure, people, compliance and protection of client funds, so COREDO prepares each of these blocks and checks it before submission.

Company and Ownership Structure

You need a company to run the business through: COREDO incorporates a new MSB company or sources a ready-made one, with full due diligence and transfer of ownership to you.

Management and Beneficial Owners

FINTRAC requests criminal record checks for the chief executive officer, the president, the directors and everyone who owns or controls 20% or more of the company.

Compliance Officer and Team

The compliance programme names the person responsible for implementing it — a compliance officer with the necessary authority. COREDO recruits licensed specialists for the key roles: CCO, MLRO, Risk Officer and Operations Manager.

AML/KYC/KYB Programme

The programme covers the assessment and documentation of money laundering risks, written policies and ongoing training for employees and agents. Every two years it is reviewed by an internal or external auditor or, where there is no auditor, by the company itself.

Operational Risk and Incident Management

A PSP puts in place an operational risk management and incident response framework that sets out the human and financial resources needed to run it.

Safeguarding of Client Funds

If you hold user funds, you need a written safeguarding policy. The funds themselves are held in a trust account used for no other purpose, or in a separate account covered by insurance or a guarantee for no less than the amount of the funds.

Representative in Canada

A foreign MSB appoints a representative in Canada to receive FINTRAC notices; the representative resides in Canada. An applicant to the Bank of Canada without a place of business in Canada also names an authorised agent in the country.

Cost of COREDO Services

Service	Cost
Turnkey launch of a regulated payment business in Canada: MSB registration with FINTRAC and/or PSP registration with the Bank of Canada, compliance, accounts, IT and team	Individual quote after an initial consultation

We calculate the price and timeline for your project: they depend on the scope of services you choose, the complexity of the regulatory structure and your objectives. You receive a detailed quote after an initial consultation and a review of your business model, and every amount in it is quoted + VAT.

The package includes:

Incorporation and registration of a new MSB company, or purchase of a ready-made MSB with full due diligence and transfer of ownership to you
Support with PSP registration with the Bank of Canada — from risk analysis to ongoing dealings with the regulator
An AML/KYC/KYB framework built to FINTRAC and FATF requirements
Safeguarding policy, segregated and trust accounts for client funds
Representation before regulators: COREDO handles all correspondence and communication
Operational, corporate and trust bank accounts, connection to BaaS providers and payment processors
Accounts on crypto exchanges, connection to an OTC desk and institutional partners
Turnkey IT infrastructure: website, client portal, admin panel, integration of KYC/AML monitoring
Recruitment of licensed specialists: CCO, MLRO, Risk Officer, Operations Manager
Internal rules, control procedures, job descriptions and a responsibility matrix

Regulatory fees are not included in the cost of COREDO services: you pay them directly, on top of our price.

FINTRAC charges no fee for MSB registration.
The Bank of Canada charges a one-time, non-refundable fee for a PSP registration application. When the regime launched on 1 November 2024, the fee was CAD 2,500. It is indexed annually: the Bank publishes the new amount on 1 December and applies it from 1 January of the following year. The Bank starts reviewing the application once the fee has been paid.
After registration, the Bank of Canada charges PSPs an annual supervisory fee (annual assessment fee).

Comparison with Other Licence Types in Canada

Parameter	MSB (FINTRAC)	Foreign MSB (FINTRAC)	PSP (Bank of Canada)
Who it is for	A Canadian company providing MSB services	A foreign company that serves clients in Canada	A company that performs payment functions for electronic funds transfers
Cryptocurrency	Yes, exchange and transfer	Yes, exchange and transfer	Digital currencies are outside the Bank’s criteria
Representative in Canada	—	A representative residing in Canada	An agent in Canada if there is no place of business in the country
Regulatory fee	None	None	One-time application fee and annual fee
Review time	Most complete applications — up to 3 months	Most complete applications — up to 3 months	The clock starts once the fee is paid

Many payment companies need both registrations: MSB for transfers, exchange and crypto, PSP for holding funds and electronic payments. The Bank of Canada may refuse an applicant that is required to register with FINTRAC but has not yet done so.

We cover the European options on the payment institution licence (PSP) page, and the overall picture for Canada on the financial licence in Canada page.

List of Documents for Obtaining a Payment Licence in Canada

Documents of Owners and Management

Details of the company’s directors, officers and owners
Criminal record checks for the chief executive officer, president, directors and owners of 20% or more — issued no earlier than 6 months before submission
Beneficial ownership details: for a corporation, everyone who directly or indirectly owns 25% or more of the shares
Documents for the standard KYC/AML client check before the project starts

Corporate Documents

Incorporation documents of the new company or the transaction package for a ready-made MSB
Corporate chart showing every person that controls the applicant or is controlled by it
Description of the organisational structure: directors, managers, owners
Details of the representative or agent in Canada — for a foreign company

Documents for FINTRAC (Prepared by COREDO)

FINTRAC registration form — sent by a FINTRAC officer during registration
Compliance programme with the appointment of a compliance officer
Money laundering and terrorist financing risk assessment
AML/KYC/KYB policies and monitoring procedures
Written training programme for employees and agents

Documents for the Bank of Canada (Prepared by COREDO)

Account and application in the PSP Connect system
Operational risk management and incident response framework
Safeguarding policy and details of trust or segregated accounts
Proof of payment of the registration fee

Procedure for Obtaining a Payment Licence in Canada

The launch runs in stages, and at each one COREDO takes care of the documents, partners and regulators.

Consultation and Business Model Assessment (Before the Project Starts)

We go through your products, clients, currencies and payment channels and determine which registrations you need. You then receive a detailed quote and project timeline.

01

Choosing the Structure — New Company or Ready-Made MSB (Project Start)

COREDO registers a new MSB company or sources a ready-made one if you prefer to buy an operating business. At this stage we also determine whether you need a representative or agent in Canada.

02

Compliance, Safeguarding and Team (Before Filing)

We develop the AML/KYC/KYB framework, the risk and incident management framework and the safeguarding policy. In parallel, we recruit the CCO, MLRO, Risk Officer and Operations Manager, write internal rules and job descriptions, and the team is trained on your procedures.

03

Filing with FINTRAC and the Bank of Canada (Once the Package Is Ready)

COREDO files a complete application with FINTRAC: the regulator only accepts complete packages. A FINTRAC officer then sends the registration form, and we complete it on time. For the Bank of Canada, we open an account in PSP Connect and file the application, and you pay the fee.

04

Banks, Payment Gateways and IT Platform (in Parallel with the Review)

While the regulators review the applications, COREDO opens operational, corporate and trust accounts and connects BaaS providers, processors and crypto partners. At the same time, the development team builds the website, client portal and admin panel with integrated KYC/AML monitoring.

05

Review and Registration (FINTRAC — up to 3 Months for Most Applications)

FINTRAC processes most complete applications within three months; complex applications take longer. The Bank of Canada usually allows 15 days for a reply, in some cases 24 hours, and COREDO prepares every response within these deadlines.

06

Launch and Work with the Regulator (Straight after Registration)

Once registered, the company appears on the public registers, and you already have accounts, a platform and a trained team, so you start taking on clients straight away. COREDO continues to manage your dealings with the Bank of Canada on your PSP registration.

Estimated Project Timeline: COREDO draws up the exact timeline after the consultation and business model assessment. FINTRAC processes most complete applications within three months.

07

Advantages of Launching a Payment Business in Canada with COREDO

One provider for the entire launch.

COREDO is responsible for the whole project — from choosing the structure to banks, the IT platform and the team. You do not need to coordinate lawyers, developers and recruiters separately.

Both registrations in one project.

One team prepares the MSB registration with FINTRAC and the PSP registration with the Bank of Canada. COREDO sequences the filings so that the FINTRAC registration is in place for the Bank of Canada application.

Fiat and crypto in one company.

MSB registration covers virtual currency services, and we open exchange accounts and connect an OTC desk, so your fiat and crypto products run on a single platform.

A ready-made MSB as an alternative.

If you prefer to buy an operating company, COREDO will source a ready-made MSB, check it and transfer it to you. Suitable options are collected in the ready-made MSB companies in Canada section.

A team ready for reviews.

You get a trained CCO and MLRO and a full set of policies. For the scheduled review of the compliance programme every two years, COREDO’s AML audit is a natural fit.

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Our Experts

Gregory has headed compliance at COREDO since December 2020. He is responsible for AML, KYC and MLRO — the areas on which COREDO builds your company’s compliance framework.

Pavel Kos

Head of Legal. Has been with COREDO since June 2017 and has headed the legal team since July 2020. Possesses extensive experience in supporting financial licensing projects in the Czech Republic and other EU jurisdictions.

Alena Mach

Executive Director

Nikita Veremeev

Founder & NED

Gregory Lutsenko

Head of Compliance

Frequently Asked Questions

Does FINTRAC issue a licence or a registration?

Formally, FINTRAC registers businesses: it does not issue licences or certificates and does not approve businesses. After registration, some of the company’s details are published in the MSB registry, which FINTRAC updates monthly.

Do we need to register with the Bank of Canada if we only work with cryptocurrency?

The Bank of Canada’s criteria cover electronic funds transfers in Canadian or foreign currency and do not include digital currencies. Exchanging and transferring cryptocurrency are MSB services and are registered with FINTRAC.

Can we buy a ready-made MSB instead of setting up a new one?

Yes, COREDO sources a ready-made MSB, checks it and arranges the transfer of ownership. After the change of owner, FINTRAC is notified of the changes within 30 days. If the company is already registered as a PSP, a new application to the Bank of Canada is filed before control passes — we build this into the transaction timeline.

How long is MSB registration valid?

MSB registration is renewed every 2 years: a company that has not renewed it gets Expired status in the FINTRAC registry. If you stop providing one of your registered services, FINTRAC is notified within 30 days.

What happens if the regulator requests additional information?

The law allows 30 days to respond to FINTRAC’s clarification requests and also 30 days for a Bank of Canada request, although in practice the Bank usually expects a reply within 15 days. If you disagree with the regulator’s decision, a request for reconsideration is filed within 30 days.

What obligations will a PSP have after registration?

The annual report is filed with the Bank of Canada by 31 March of the following year through the Bank’s electronic system. The Bank is notified of a significant change to the payment service at least five business days in advance. In the event of an incident with a material impact, the Bank and the affected clients are notified without delay.

Does an agent acting on behalf of a PSP need its own registration?

The RPAA does not apply to an agent of a registered PSP when it performs retail payment activities. MSBs have their own rules: since 1 October 2025, an MSB checks the suitability of its agents and obtains criminal record checks for them. For agents engaged before that date, the deadline for meeting these requirements is 1 October 2027.

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Want to launch a payment business in Canada without lengthy coordination of contractors? Tell us about your model, and COREDO will propose a structure, quote and timeline — from MSB and PSP registration to accounts, platform and team.

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