Eternity Law International — News — Canadian MSB setup: we provide a turnkey service

Canadian MSB setup: we provide a turnkey service

Published:
October 4, 2022

The establishment of an MSB in Canada requires acquiring a specific license from FINTRAC, a regulatory authority of the country regulating a Canadian financial market. In this overview, we collected the main points regarding money service businesses: authorizations, requirements, the specter of regulation, and due diligence obligations.

Overview of the regulatory authority of the Canadian financial market

FINTRAC is a FIU in the Canadian jurisdiction. The authority is responsible for the identification, prevention and fighting with illicit money turnover and the funding of terroristic operations. FINTRAC’s compliance functions present an efficient contribution to the security of Canadian financial market participants and the safeguarding of the integrity of Canada’s financial vehicle.

FINTRAC does not depend on police services, law enforcement agencies, and other organizations. It is accountable to the Ministry of Finance, which in turn depends on Parliamentarians.

Scope of authorizations granted by an MSB license

A license for MSBs permits institutions to execute such services as:

  • Forex Dealing;
  • Fund Transfers;
  • Issuing Money Orders, Traveler’s Checks;
  • Dealing in Cryptocurrency.

Indemnity insurance

A registered MSB is obliged to maintain insurance policies in an amount equivalent to the size and nature of the securities firm to be able to cover at minimum professional indemnity. If that coverage amount is not enough, the Commission may deny the application for registering. But, this obligation is not applicable to organizations carrying out solely advisory services on securities.

Recordkeeping Obligations

MSB License holders should file reports on payment operations they conduct. Provided that there are sufficient evidences to doubt the validity of a certain transaction, a company should submit a STR without delays. For large transactions from 10,000 CAD, a report must be provided within five days. MSBs are expected to keep records of risky payment operations, transactions of $10,000 or more, Forex services, etc.

Due Diligence

Under financial law, all MSBs must conduct Due Diligence (DueD) to formally verify the identities of all their clients. To conduct DueD for licensing, a company must provide the below-mentioned documents of all directors and shareholders:

  • A duplicate of the passport;
  • Proof of address;
  • CV;
  • Business Plan;
  • Financial Projections;
  • Constitution documents;
  • Other supporting papers if needed.

Eternity Law International offers a turnkey solution for licensing financial institutions. Our licensing package for MSB in Canada includes promotion of your request to the Canadian regulator, drafting and reviewing application documents and questionnaires, following up with the application, and ensuring the provision of extra details required by the related department of Canada.

Please contact us to get more information.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Anjouan Gaming License

The gambling license in Anjouan (Comoros Islands)  plays a crucial role in the realm of online entertainment, gearing up for a significant impact in 2024. Despite often being overlooked, recent enhancements have transformed it into a potent force within the competitive business landscape. Strategic Approach: Anjouan has evolved into a central hub for strategic operations,...

Classification of investment companies in Cyprus

IFD and IFR introduced a new system designed to classify investment firms. This system is based on the activities of such companies, on their size, systemic importance in the overall structure and group partnerships. Therefore, the capital adequacy requirements of CIF will be based on the class of the investment company. The following four categories...

Forex Broker License in Cyprus

Forex-trading is making money on currency exchanging deals. Forex-market exists globally and its turnover exceeds millions of dollars. Cyprus is one of the first countries to legalize Forex trading and has gone to great lengths to keep traders safe by offering them quality, greatly-full and strict regulation. However, despite the severity of certain points of...

Company registration in Namibia

Namibia is considered one of the richest and most influential countries in the African continent. That is why many foreign entrepreneurs strive to set up businesses there. Organizational forms for businesses in Namibia You can register a commercial structure in Namibia in one of the following forms: a company with limited liability of its participants...

Company formation in Singapore

Instituting an enterprise in Singapore is a tough endeavour. We discuss the methods and help you with creating commerce in Singapore. Why should you prefer Singapore? Numerous global companies select to establish their foundations in Singapore. Traders view Singapore as the perfect place to provide their operations, and many of them use it as a...

Estonia's own cryptocurrency

Estonia’s own cryptocurrency is a current moment, as this country can become the first with its own cryptocurrency – estcoin. Over the past few years, Estonia has been initiating new trends aimed at developing the state towards the digital community. As part of its initiatives, Estonia was the first among countries to introduce an e-residency...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360