COREDO > Financial Licence in Canada

Financial Licence in Canada

Canada is one of the most stable and transparent jurisdictions for conducting business in financial services. The Canadian banking system ranks among the most resilient in the world: the country consistently demonstrates low levels of corruption, a developed financial market infrastructure, and a well-balanced regulatory environment.

COREDO provides a full range of services for obtaining a financial licence in Canada — from preparing corporate documents and developing AML policies to managing all communications with the regulator. We have been working since 2016 and have completed hundreds of licensing projects across various jurisdictions.

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Cost of the service
from 25 000 EUR

Regulatory Framework in Canada

The financial services market in Canada is regulated at the federal level by two main bodies:

FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) — financial intelligence and MSB activity regulator. It operates under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act — PCMLTFA.
Bank of Canada — since November 2024, it supervises payment service providers (PSP) under the Retail Payment Activities Act — RPAA.

These two regimes are independent and complementary: most MSBs are required to register under both. FINTRAC focuses on anti-money laundering and counter-terrorist financing (AML/CFT), while the Bank of Canada focuses on operational resilience and end-user fund protection.

Unlike European jurisdictions regulated by the EMD2 and PSD2 directives, Canada applies its own national legal framework. At the same time, the country consistently harmonises its requirements with international FATF standards.

Types of Financial Licences in Canada

Licence Type	Description	Min. Regulatory Capital	Registration Timeline
MSB (Money Services Business)	For companies with a physical presence in Canada: currency exchange, money transfers, virtual assets, cryptocurrency	Not required	6–8 weeks
FMSB (Foreign MSB)	For foreign companies serving clients in Canada without a Canadian office	Not required	6–8 weeks
PSP (Payment Service Provider) under RPAA	Retail payment service providers: registration with the Bank of Canada	Not required	3–6 months
PSP + MSB (combined package)	Full market operations: FINTRAC + Bank of Canada	Not required	4–6 months

Important: The absence of minimum regulatory capital requirements is a significant competitive advantage of Canada compared to European jurisdictions, where EMI requires EUR 350,000 and PSP requires from EUR 20,000 to EUR 125,000.

Advantages of the Jurisdiction

No minimum share capital.

Neither FINTRAC nor the Bank of Canada sets mandatory start-up capital for MSB registration. This significantly lowers the market entry threshold and makes Canada one of the most accessible jurisdictions for launching a fintech project. For comparison: in the EU, the minimum capital for an EMI is EUR 350,000, and for a PSP — from EUR 20,000 to EUR 125,000.

Transparency and speed of procedure.

The standard processing time for a FINTRAC application is 6–8 weeks. The Bank of Canada reviews PSP registration applications within a few months.

No FINTRAC registration fee.

FINTRAC does not charge a state fee for MSB registration. The Bank of Canada sets a one-time non-refundable contribution of CAD 2,500 for PSP registration.

Access to international banking and payment infrastructure.

A licensed MSB in Canada gains access to settlement accounts, international payment systems, and correspondent banks.

Coverage of cryptocurrency and virtual assets.

The FINTRAC MSB registration covers virtual asset operations, including exchange activities and cryptocurrency transfers. This makes Canada an attractive jurisdiction for crypto and fintech projects.

Favourable tax regime.

The federal corporate income tax rate is 15%. The provincial rate ranges from 11% to 16%, with preferential regimes available for small businesses.

International reputation.

Canada is a member of FATF, OECD, and G7, which gives Canadian licences high credibility with partner banks and international counterparties.

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General Licensing Requirements

The following conditions must be met to register an MSB with FINTRAC:

Corporate structure.

A registered legal entity is required (typically in the province of Ontario). The company director may be a non-resident of Canada.

Compliance Officer.

A responsible compliance officer must be appointed. This person must be familiar with AML/CFT regulation and interact with FINTRAC on behalf of the company.

AML/CFT programme.

Development and implementation of a comprehensive anti-money laundering and counter-terrorist financing programme: KYC and CDD policies, transaction monitoring, and staff training.

Beneficial owner data.

FINTRAC requires information on all persons who directly or indirectly hold 20% or more of the company’s shares or interests: citizenship, criminal record clearance (the certificate must be issued no more than 6 months before the application date).

Business plan.

A detailed description of the planned activities, types of services, and projected transaction volumes by service type in USD per year.

Registered office.

A registered office address is mandatory. A physical office is not required at the registration stage.

RPAA requirements (Bank of Canada).

Companies planning to carry out retail payment activities (payment processing, storage of user funds) must also register with the Bank of Canada and develop: a Retail Market Infrastructure Risk (RMIR) Framework and an end-user fund protection policy.

COREDO Service Packages

Service Package	Scope	Price
Package 1: Company registration in Ontario + MSB licence (FINTRAC)	Name check and reservation; company registration; registered office for 1 year; corporate document package; Minutes Book preparation; share issuance; UBO check; AML policy development; application preparation and submission to FINTRAC; regulatory communications support	from EUR 25,000 + VAT
Package 2: Company registration + MSB (FINTRAC) + application to Bank of Canada (RPAA)	Everything in Package 1, plus: full documentation package for the Bank of Canada; application preparation and submission to the Bank of Canada; communications support with the Bank of Canada	from EUR 40,000 + VAT

Additional services (not included in the package):

Bank of Canada state fee (RPAA): CAD 2,500
Physical office rental: from EUR 500–600 + VAT per month
AML/Compliance officer: from EUR 5,400 + VAT
Annual corporate maintenance (including registered office): from EUR 2,700 + VAT per year
MSB licence renewal: from EUR 5,000 + VAT (licence valid for 3 years)

Payment Terms

COREDO applies a standard payment schedule: 40% – 40% – 20%.

40%

advance payment upon signing the agreement and commencement of work.

40%

after preparation of the full documentation package and submission of the application.

20%

upon receipt of the licence (final payment on result).

The final cost of services depends on the specifics of the individual project and is determined following a free consultation.

Document Checklist

The following set of documents and information is required for MSB registration in Canada:

Director’s documents: passport, proof of address (utility bill or bank statement), criminal record clearance certificate (no older than 6 months).

UBO (Ultimate Beneficial Owner) documents: passport, residential address, source of funds, criminal record clearance certificate.

Compliance/AML Officer documents: passport, proof of qualifications, CV.

Business plan: description of activities, revenue model, and client base.

Financial plan: projected turnover, transaction volumes by service type in USD per year.

Three preferred company names: in case the first choice is rejected.

Proof of company registered office: lease agreement or registered address agreement.

Ownership structure information: corporate structure diagram, each participant’s share.

Number of employees: planned headcount at the commencement of operations.

AML/CFT policies: internal KYC, CDD, transaction monitoring, and staff training procedures.

Description of IT infrastructure and security systems (for RPAA: additionally, the RMIR Framework).

Bank account information: confirmation of opening or intention to open a settlement account.

Information on MSB service types: currency exchange, money transfers, virtual assets, crypto, etc.

Information on agents and sub-agents (if applicable): list and their documents.

Licensing Procedure in Canada

Consultation and Project Analysis

COREDO provides a free initial consultation during which the client’s business model is analysed, the optimal service package is determined (Package 1 or Package 2), a list of required documents is compiled, and a realistic project timeline is assessed. At this stage, a preliminary check of beneficial owners for potential risks is also conducted, enabling early identification and resolution of any registration obstacles.

01

Company Registration in Ontario

Registering a legal entity in the province of Ontario includes: name verification and reservation, preparation of incorporation documents (Articles of Incorporation), Minutes Book, share issuance, and registered office arrangement. The company may be registered as a federal (Canada Business Corporations Act) or provincial corporation. The director may be a non-resident of Canada, which simplifies the procedure for international clients.

02

Preparation of AML Documentation and Application

Development of the AML/CFT programme: KYC and CDD policies, monitoring and reporting procedures. Preparation of a complete documentation package and official application for FINTRAC. For Package 2: additionally, preparation of the RMIR Framework and documentation for the Bank of Canada.

03

Submission and Support of the FINTRAC Application

The application to FINTRAC is submitted through the regulator’s electronic system. FINTRAC conducts due diligence on the director and key personnel, including thorough review of criminal record clearance certificates and verification of the completeness of AML documentation. The regulator may request additional information or clarifications on specific points of the application. COREDO manages all communication with FINTRAC and promptly prepares responses to requests. The standard review period is 6–8 weeks from the date of submission of the complete documentation package.

04

Receipt of MSB Registration

Upon successful completion of the review, FINTRAC issues an MSB registration number, which is entered into the public register. From this point, the company is authorised to provide financial services in Canada in accordance with its declared activities. The registration is valid for three years, after which a renewal application must be submitted no later than 30 days before expiry. For Package 2, simultaneous engagement with the Bank of Canada under RPAA is conducted, including agreement on the RMIR Framework and end-user fund protection policies. The typical total timeline for Package 1 is 3–5 months, and for Package 2 — 4–6 months.

05

Our Experts

Financial licensing projects at COREDO are managed by lawyers with proven experience working with regulators across various jurisdictions. The COREDO team has been working since 2016 and specialises in legal and compliance advisory across the EU and international jurisdictions. We have worked across dozens of jurisdictions and hundreds of projects.

Pavel Kos

Head of Legal. Has led the legal practice at COREDO since July 2020. Has been with the company since 2016. Specialises in financial licensing, M&A transaction support, and regulatory compliance. Has participated in hundreds of licensing projects across Europe and beyond.

Basang Ungunov

Lawyer at COREDO since 2022. Specialises in legal support for financial licences, corporate documents, and regulatory matters. Responsible for preparing and reviewing documentation packages for regulators.

Frequently Asked Questions

What is an MSB licence in Canada?

An MSB (Money Services Business) is a registration in the FINTRAC register that grants the right to provide financial services: money transfers, currency exchange, virtual asset operations, and other MSB services. It is not a licence in the European sense, but rather a mandatory registration with ongoing AML/CFT compliance oversight.

Is a physical office in Canada required to obtain an MSB?

For standard MSB registration (Package 1), a physical office is not mandatory at the initial stage. However, a registered office address in Canada is required. For certain banking operations and working with some financial partners, having a physical office may become necessary.

Can a non-resident of Canada be a company director?

Yes. Canadian law does not require the company director to be a Canadian citizen or resident. This makes the jurisdiction convenient for international structures.

What is the minimum capital for obtaining an MSB licence?

FINTRAC does not set minimum regulatory capital requirements. This is one of the key advantages of the Canadian jurisdiction compared to European counterparts (EMI in the EU requires EUR 350,000).

Can cryptocurrency be handled under an MSB licence?

Yes. FINTRAC MSB registration covers virtual asset operations: exchange, transfer, and storage of cryptocurrency. If a company works exclusively with cryptocurrency and does not conduct fiat currency operations, registration with the Bank of Canada (Package 2) may not be required.

What is the difference between an MSB and an FMSB (Foreign MSB)?

An MSB is for companies with a physical presence in Canada (registered in Canada). An FMSB is for foreign companies providing services to clients in Canada without a Canadian legal entity. Both types are regulated by FINTRAC and must comply with PCMLTFA requirements.

Is registration with the Bank of Canada (RPAA) required in addition to FINTRAC?

It depends on the type of activity. If the company provides retail payment services (payment processing, storage of user funds), registration with the Bank of Canada under RPAA is mandatory. COREDO offers Package 2, which covers both registration stages.

How long does it take to obtain an MSB licence?

The standard FINTRAC application review period is 6–8 weeks from the date of submission of the complete documentation package. Taking into account the company registration and document preparation stages, the total timeline is 3–5 months (Package 1) or 4–6 months (Package 2 with the Bank of Canada).

Contact Us

Ready to obtain a financial licence in Canada? The COREDO team will provide a free consultation, select the optimal package, and take care of the entire process — from company registration to receipt of MSB registration.