MSB licenses in Canada are an official document provided to organizations that carry out financial transactions, including various forms of money transfers and electronic payment services. The MSB industry is growing rapidly around the world, and licensing remains an important step in the context of conducting legal business. In recent years, Canada has become one of the most attractive jurisdictions for fintech companies working with cryptocurrencies and providing innovative financial services. This is facilitated by more loyal regulation of the industry by the state compared to other developed countries. Below we will look at the main advantages and strengths of having such a permit in a given jurisdiction, taking into account constantly changing trends.
Our team is made up of professionals who are experts in high-quality and fast registration and licensing of any type of commercial structures. We are ready to provide you with comprehensive advisory and practical assistance in obtaining this type of permit. MSB license cost Canada is calculated individually in each case with full optimization of your budget.
Innovative side of MSB-license in Canada: strong parameters and innovation in the financial environment
Canada plays a significant role in the global economy. It is one of the member countries of the group of seven largest economies in the world. This status of the country is due to a number of key factors.
- Transparent legal system.
- Sustainable economy.
- Government investment in scientific research.
- Availability of an educated personnel reserve.
MSB-business is a term used by financial authorities to describe companies involved in the transfer or exchange of funds. Obtaining a Canadian MSB-license strengthens the credibility of such companies as it demonstrates their compliance with Canadian financial regulations.
One of the key advantages of an MSB-license in Canada is the official opportunity that allows companies to provide financial services: money transfers, currency exchange, issuance and sale of payment instruments, cryptocurrency exchange and other operations. This permit is regulated by FINTRAC. FINTRAC’s primary functions include monitoring and supervising reporting entities, reviewing reports from financial institutions, issuing permits and licenses, and preventing illegal monetary means circulation.
Canada has become one of the key financial and business centers of the world. The diversity of economic opportunities and strategic location make this jurisdiction attractive for registering companies, including in the financial industry. Key preferences of Canada in the context of launching international business here are next-mentioned.
- Canada is renowned for its stable economy, sound financial system and low levels of political risk.
- Canada is located on the border with the United States and has access to the huge market of the North American continent.
- Canadian financial system is characterized by stability and transparency. The country has many large banks and financial institutions.
- Government provides various tax advantages and incentives to companies, including reduced tax rates and investment incentives.
- • Canada has free trade agreements with various countries, which provides access to global markets.
Canadian MSB-license is an important financial regulation tool that helps the government combat illegal activities such as the financing of fraudulent schemes and money laundering.
The strengths of having this permit in this innovative and thriving market space are listed below.
- Legitimacy and trust. MSB-license confirms the legality of financial transactions and increases the confidence of clients, suppliers and partners.
- Access to the financial system. Canadian MSB-license allows its holder to interact with banks and financial institutions in that country.
- Increase in customer base. Many clients prefer to work with licensed MSBs as this ensures compliance with financial services standards and regulations.
- Safety. Canadian MSB-license confirms the company’s activities comply with applicable laws and international standards in the financial industry.
- Support from the regulator. FINTRAC can provide guidance and resources to companies with an MSB/FMSB-license in Canada to ensure compliance with regulations.
Establishment, launch and licensing of MSBs in Canada
- There are several legal forms available, but the most common is the corporation.
- When applying to register a company, you must propose at least three options for the company name in order of preference. The regulator must approve or reject the chosen name.
- It is necessary to have a business plan, which should contain information about the goals and directions of the company’s activities, the company’s strategy, and present financial forecasts for several years in advance.
- The company must have a registered legal address in Canada.
- The company must open a bank account in Canada into which the initial capital will be deposited.
- FINTRAC does not set specific requirements for the minimum amount of initial capital, but depositing a significant amount into the company account allows the regulator to make sure that you are serious about developing a business in this area.
Establishments with an MSB license have specific responsibilities to:
- customer identification;
- financial monitoring;
- submitting data about customers and their transactions to regulatory authorities;
- development of internal risk management measures.
- In order for the licensing process to be carried out in strict compliance with the legislative norms of the country, you should involve our specialists.
The licensing applicant must prove to the regulator that all necessary documentation has been prepared in full, and the persons authorized to act on behalf of the company have sufficient qualifications and experience in the financial sector.
Persons interested in applying for a Money Service Business license should be aware that under new amendments effective June 1, 2021, FMSBs will have the same obligations as local MSBs when they provide one of the services listed in the Act addressed to individuals located in Canada. FINTRAC has the statutory authority to impose administrative monetary penalties on businesses that do not comply with the requirements of the PCMLTFA and associated regulations.
Our team is professional experts who have a huge and colossal amount of experience and knowledge, which gives us the opportunity to provide only the most effective results for our clients. We are dedicated to improving your commercial future. by optimizing your budget and field of activity.
