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.
