Money service businesses (MSBs) in Canada help people enjoy various transactions nationwide. They provide essential financial services such as currency exchanges.
The best thing about MSBs is that they serve as a good alternative to traditional banking services in Canada. You may also be navigating the country's complex business landscape.
This is why knowing whether you qualify as a money service business in Canada is an important consideration. So let's look at whether your business falls under the FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) list of MSBs in Canada.
What is a Money Service Business in Canada?
A money service business is an entity that performs specific financial activities for Canadian clients. These can include transfer of funds (cash, electronic funds, cryptocurrency), currency exchanges, and issuance of negotiable financial instruments (money orders, traveller's cheques, bank drafts, etc).
If your business handles any of these transactions, you will be expected to complete MSB registration with FINTRAC for compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). This registration is a legal obligation intended to protect the integrity of Canada's financial system, not merely a formality.
Do You Qualify As A Money Service Business In Canada?
A money service business offers services similar to banks in Canada, but operates outside the traditional financial system. Your business must offer any of the following services to qualify as an MSB:
- Money Transfers
- Virtual Currency Management
- Regular Currency Exchange
- Issuing Money Orders
- Cashing Cheques
- Facilitating Home Remittance Payments
If you want to play a role in offering these financial services in Canada, you can work as an MSB. Of course, you will still have to register your business to operate legally in Canada.
How To Qualify As A Money Service Business In Canada?
Offering the services listed above allows you to qualify as an MSB in Canada. However, if you don't register yourself with FINTRAC, you will be operating as an illegal MSB. So here are the steps you must follow to qualify under the list of MSB in Canada:
Have A Canadian Money Service Business Place
You must have a Canadian business location before you can serve as an MSB legally. If you don't have company property in Canada, you will have to register yourself as a foreign MSB (fMSB).
Get A FINTRAC MSB License
Getting a FINTRAC MSB license is necessary to operate legally in Canada. The organization regulates financial service providers to avoid money laundering, terrorist financing, and other financial crimes. You can begin the process through Renno & Co. Fintech's MSB registration services.
Comply With Know-Your-Customer (KYC) Regulations
Once you've registered your MSB in Canada, you must comply with various regulations, such as:
- Anti-money laundering (AML) regulations
- PCMLTFA
- Virtual currency requirements
- Bank of Canada compliance rules
- FINTRAC KYC requirements
Businesses operating in Quebec may also require provincial MSB registration.
If you don't follow these regulations, you will face FINTRAC fines and penalties for non-compliance.
The organization may also revoke your FINTRAC MSB license to prevent you from qualifying as a money service business in Canada.
FINTRAC Canada MSB Search: List of MSBs in Canada
If you qualify and register your money service business, your name will be added to the list of MSBs in Canada. This means your clients and partners can easily confirm whether you're operating legally.
Here are some examples of famous MSBs that come under the FINTRAC Canada MSB search:
- Western Union Canada tops the list of MSBs in Canada
- Tipalti has recently registered as a Canadian MSB to expand its market
- PayPal Canada
- Money Mart
- Cashmere Solutions
- Plaude Canada
- Dailypay
You will find all these names and more under the list of MSBs in Canada. The registry also includes their current status as a money service business.
For example, if a company's FINTRAC MSB license has expired, the status will be mentioned in the list.
This feature has been designed to help businesses and customers avoid collaborating with MSBs whose licenses have been revoked, ceased, or expired.
How to Use the FINTRAC MSB Registry?
The FINTRAC MSB registry is a public database that lists registered MSBs in a single place. It is an authoritative source that allows you to verify your registered status. Here is how you can use the FINTRAC MSB registry:
Step 1: Visit the FINTRAC Website
Go to fintrac-canafe.canada.ca. From the homepage, navigate to the reporting and registration section and then select MSB Registry.
Step 2: Open the Registry Directory
On the MSB Registry page, scroll down to find the registry directory table. This table lists all currently and previously registered MSBs in Canada, along with their registration numbers and status.
Step 3: Search for a Specific MSB
You can search the registry in three ways:
- By business name — type the full or partial name of the MSB into the search field
- By registration number — if you have the MSB's FINTRAC registration number, enter it directly for an exact match
- By province — filter results by province or territory to see all registered MSBs operating in a specific region
Step 4: Review the Result
Once you locate the business, click on its entry to view the full record. This will show you the business name, registration number, registration date, services offered, and current status.
What Does Each FINTRAC MSB Registration Status Mean?
Every MSB in the FINTRAC registry carries a status label for easier understanding. The categories include:
Active
Active MSB registration means the business is currently registered with FINTRAC and can legally offer its services in Canada. The status offers confidence to clients and banking institutions that may want to partner with your MSB.
Expired
MSB registration expires when businesses fail to renew their registration. The status indicates that the MSB can no longer operate legally and must regain active status before offering services again.
Revoked
FINTRAC may revoke MSB registration sometimes when businesses are in non-compliance with the PCMLTFA. Revoked MSBs must face regulatory consequences and may not be allowed to apply for FINTRAC MSB registration.
Ceased
Ceased status is for MSBs that have voluntarily stopped operations and informed FINTRAC of the same. The label indicates a clean exit from the industry and ensures that banking partners don't misassume any violations.
Examples of MSBs Operating in Canada
Many well-known financial companies are registered on the FINTRAC MSB list. Here are some prominent examples:
1. Western Union Canada
One of the most recognized names in global money transfers, Western Union Canada is registered with FINTRAC and offers domestic and international remittance services, currency exchange, and money orders. You can verify their status directly through the FINTRAC MSB Registry by searching "Western Union."
2. PayPal Canada
PayPal Canada operates as a registered MSB, offering electronic funds transfers, payment processing, and virtual currency management services. As a major digital payments platform, PayPal Canada is subject to the same FINTRAC compliance obligations as any other MSB. Search "PayPal Canada" in the FINTRAC MSB Registry to view their active registration.
3. Money Mart
Money Mart is one of Canada's most widely distributed alternative financial service providers, with hundreds of locations nationwide. Their services include cheque cashing, payday loans, money transfers, and foreign currency exchange. They have a long-standing registration with FINTRAC.
4. Tipalti
Tipalti has recently registered as a Canadian MSB to expand its market presence. Tipalti specializes in global mass payments and accounts payable automation, enabling businesses to pay suppliers and partners in multiple currencies. Their FINTRAC registration reflects their growing activity in the Canadian payments space.
5. Dailypay
Dailypay is an on-demand pay platform that allows employees to access earned wages before their scheduled payday. As an MSB in Canada, Dailypay is registered with FINTRAC for its funds transfer activities. Their entry can be found in the FINTRAC registry under their registered business name.
How to Check If Your Business Is on the FINTRAC List of MSBs in Canada
If you have not registered yourself with FINTRAC, your business will not be on the list of MSBs in Canada. To avoid legal complications, you must meet with legal counsel and register yourself as soon as possible.
However, if you have already registered to be on the list of MSBs in Canada, you can follow the steps below to check if your name is there:
- Open FINTRAC's official website
- Go to FINTRAC MSB Registry directory page
- Scroll down the page to view a table with the names of all MSBs in Canada
- You can also download the MSB registry file from the same page to view the list offline whenever you require
Keep in mind that the FINTRAC MSB Registry is updated every month. If you have recently filed for a license, it may be normal that your company name isn't there. In that case, you may have to check the registry again a month after your license has been approved. If your name still hasn't been added there, you may consult a legal advisor on what to do next.
FAQs
Is MSB Registration with FINTRAC Mandatory?
If your business offers qualifying financial services under the PCMLTFA, FINTRAC MSB registration will be mandatory for your business. These services may include money transfers, currency exchange, and cheque cashing. You must complete the registration application and wait for approval before operating in Canada.
How Long Does MSB Registration Take?
MSB registration with FINTRAC can take five to six months, depending on your application. Businesses that submit complete documents without errors have a higher chance of receiving approval than those who submit incomplete documents. You must thoroughly review your application to avoid FINTRAC MSB registration delays.
What is FINTRAC MSB Registry?
FINTRAC MSB registry is a public database designed by the regulatory agency to help businesses, banking institutions, and potential clients navigate the registration status of MSBs. A business may be labelled as having active, expired, revoked, or ceased registration on the website.
What Does it Mean if my MSB is not on FINTRAC MSB Registry?
If your MSB is not on the FINTRAC MSB registry, your application may still be processing. The registry is a list of MSBs that have been registered in Canada or were registered, but their statuses have changed now. If you recently submitted an application, it is normal for your MSB to not be in the list until FINTRAC approves your request.
Get In Touch With Renno & Co. Fintech To Register Your Business Under The List Of MSB In Canada
Whether you want to register yourself as an MSB or need details about why your business name is not on the list of MSB in Canada, we're here to help you.
Our legal experts have comprehensive knowledge of the MSB registration process in Canada. So get in touch with Renno & Co. Fintech to understand whether you qualify as a money service business.
Disclaimer: This content is for informational purposes only and does not constitute legal advice.
