Re-licensing of MSB (PSP) in Canada - COREDO

Re-licensing of MSB (PSP) in Canada

As of 1 November 2024, all payment service providers (MSBs/PSPs) operating in Canada are required to undergo re-licensing with the Bank of Canada (BoC). This requirement arises from the new Retail Payment Activities Act (RPAA), which regulates companies engaged in processing retail payments.

The law applies to both Canadian companies and foreign MSBs/PSPs offering services to Canadian clients. The re-licensing process is mandatory for businesses wishing to continue lawful operations in Canada and involves meeting all regulatory requirements set by the Bank of Canada.

New rules and obligations for financial institutions in Canada

Previously, payment service providers, such as MSBs (PSPs), were regulated under the Proceeds of Crime and Terrorist Financing Act, which primarily focused on monitoring financial transactions. However, starting from 1 November 2024, the new Retail Payment Activities Act (RPAA) will come into force, placing PSPs under the oversight of the Bank of Canada. This reflects a stricter regulatory approach, similar to the European model.

The new law aims to establish tighter control and regulation of payment service providers and fintech companies, introducing new obligations for all market participants. Under the key requirements of the Retail Payment Activities Act (RPAA), payment service providers must implement an operational risk management and incident response framework (RMIR Framework), report significant incidents to the Bank of Canada, notify about substantial changes in their operations, and ensure the protection of users’ funds.

Mandatory registration process in 2024

All MSBs (PSPs) offering their services in Canada are required to complete registration between 1 and 15 November 2024. To successfully register, providers must:

  • Submit registration information to the Bank of Canada, according to the requirements.
  • Pay the registration fee.
  • Comply with the reporting obligations outlined by the RPAA.

It is important to note that after the registration period ends, the Bank of Canada will need ten months to review the submitted applications. During this period, MSBs (PSPs) are permitted to operate in Canada, provided they have submitted their registration applications on time. The regulator is expected to publish the list of registration decisions, including those MSBs (PSPs) that have been denied, on 8 September 2025. Those denied registration will be notified before the publication of the list.

Mandatory registration process in 2024

Cost of the service

The cost of the service package is €27,000 + VAT. The final price for the re-licensing of MSBs (PSPs) in Canada may vary depending on the specific case.

Cost of the service

COREDO service package

COREDO’s specialists offer comprehensive assistance with the re-licensing of payment service providers and fintech companies following the new regulatory requirements. Our service package includes:

  • Registration of the organisation with the Bank of Canada in compliance with the RPAA, including:
    • Verification of the accuracy of registration forms before submission.
    • Creation of accounts in PSP Connect for the client.
    • Assistance in gathering and preparing the necessary information for registration.
    • Handover of all access credentials to the Client when registration is complete.
    • Ongoing support after registration.
  • Development of a detailed, customised AML policy package, fully compliant with Canadian regulatory requirements.
  • Assistance with corporate bank applications, including:
    • Support with opening trust/safeguard accounts for clients before registration under the RPAA.
    • Help in gathering the documentation required for bank applications.
    • Coordination of form completion with the client.
    • Acting as an intermediary between banking partners and clients throughout the entire application process.

Re-licensing under the RPAA can seem complex, but with the help of COREDO’s experts, you can navigate this process confidently, ensuring compliance with the established requirements and minimising the risk of registration denial.

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