Financial license in Canada

Financial market analysts consider the banking system in Canada to be one of the most robust and rapidly growing. Canada has successfully overcome all the turbulences associated with the international crisis and today its economy is one of those that meets all the basic requirements in terms of, for example, securities markets, taxation, levels of corruption and innovative technologies.

The Canadian government has set reasonable requirements for companies that want to do business in the financial sector, which is very positive. An MSB (Money Services Businesses) licence is required to operate in the financial sector of this country.

MSB LICENCE: GENERAL INFORMATION

MSB licence involves enrolling in a dedicated registry for businesses offering payment services. It is overseen by the Canadian regulator, the Financial Transactions and Reports Analysis Centre of Canada – FINTRAC, the country’s financial intelligence unit (FIU). The Centre plays a crucial role in identifying, preventing, and discouraging money laundering and terrorism financing. To prevent these crimes, MSBs in Canada must satisfy particular requirements outlined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations.

There are two types of MSB licence:

Canadian Money Services Business: This pertains to an entity that provides at least one money services business (MSB) service and maintains a place of business in Canada.
Foreign Money Services Business: This designation applies to an entity engaged in delivering at least one MSB service to clients or entities in Canada but possesses no physical place of business within the country.

ADVANTAGES OF OBTAINING A LICENCE IN CANADA

Registering a payment system in Canada provides many opportunities for conducting a successful international business.
The speed and transparency of obtaining a licence.
No requirements for a special amount of authorised capital.
Reliable financial and banking system.

COST OF OBTAINING A LICENCE IN CANADA

COREDO offers two service packages for obtaining and MSB license in Canada:

Option 1. Company registration in Ontario and FINTRAC MSB license obtaining.

The cost of the package of services starts from 25,000 EUR + VAT.

Note: the final price for the service of obtaining an MSB licence in Canada depends on several factors. Following the free consultation, our team will be glad to provide you with a final evaluation of the case implementation.

What is included in this package:

Company name check and reservation.
Company registration in Ontario.
Registered legal address for 1 year.
Preparation of a corporate documents package.
Preparation of the Minutes Book.
Share issuance.
Ultimate Beneficial Owner (UBO) verification.
Development of AML policies adapted to the Company’s business plan.
Preparation and submission of the application for obtaining an MSB license.
Communication with FINTRAC and responses to inquiries during the application review process.

The process of licence obtaining typically takes around 3-5 months.

Note: this option is suitable if the Company works exclusively with cryptocurrency – no submission to the Bank of Canada is required.

Option 2. Company registration in Ontario, obtaining a FINTRAC MSB license and submission of an application to the Bank of Canada (PRAA).

In this case, the cost of the service package starts from 40,000 EUR + VAT.

Note: the price may vary depending on the specific case.

The price includes everything specified in Option 1 («Company registration in Ontario and obtaining a FINTRAC MSB license»), as well as the following additional services:

Preparation of a complete set of documentation for the Bank of Canada in accordance with the Company’s business profile.
Preparation and submission of an application to the Bank of Canada.
Communication with the Bank of Canada and responses to inquiries during the application review process.

Estimated timeframe for obtaining the license: approximately 4-6 months.

Additional services not included in the package price:

Bank of Canada government fee: 2,500 CAD.
Rental of a real office: from 500-600 EUR + VAT.
AML/Compliance employee: from 5,400 EUR + VAT.
Note: quotes are prepared individually for each company.
Annual corporate renewal of the Company (including the registered address): from 2,700 EUR + VAT per year.
License renewal: from 5,000 EUR + VAT.

Note: the MSB license is issued for 3 years. To renew the license, the Company must submit an application to FINTRAC at least 30 days prior to the license expiration date.

PROCEDURE OF OBTAINING A LICENCE IN CANADA