MSB license: 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 deterring money laundering and terrorism financing. To prevent these crimes, MSBs in Canada must satisfy specific 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 does not have any physical place of business within the country.
