The journey to getting a FINTRAC MSB license for your business may seem easy, but it requires extra caution. This is especially true if you’re applying for Quebec MSB registration.
Additional rules apply when completing Quebec MSB registration, such as getting a provincial license. If you’re struggling for a MSB license in one of the largest Canadian provinces, we can help you. Let’s dive into the specifics of Quebec MBS licensing.Â
Quebec MSB Registration: A Unique Framework Only for This Province
Quebec is the only Canadian province, for now, in which money service business owners have to complete two registration forms:
- You need to apply for FINTRAC MSB registration and get a federal license
- You must also complete Revenu Quebec MSB registration to get a provincial license
If you have a FINTRAC MSB license, but not the Revenu Quebec MSB license or vice versa, you cannot operate legally in the province. Both licenses are essential for offering money services such as cashing cheques in Quebec.
Why Quebec MSB Registration is a Two-License Process?
You may wonder why Quebec has a need for licenses in order to operate an MSB. The main reason behind this requirement is the Money Service Business Act (MSBA).
The act requires MSBs in Quebec to follow specific provincial regulations for added security. It seeks to prevent money laundering and financial crimes in a more oriented way.
Revenu Quebec MSB licensing role is to ensure money service businesses are following:
- Regulations under the MSBA
- Regulations related to tariffs and fees payable under the MSBA
The overall goal is to ensure Quebec MSBs meet local standards of financial operations.
Revenu MSB License Quebec Requirements
When operating a money service business, you must meet the MSB license Quebec requirements:
- A Revenu Quebec MSB license is necessary if you’re operating from a direct branch or office in the province
- A Revenu Quebec MSB registration is essential if you’re offering Quebec residents physical or online money services
If your MSB headquarter is based in Ontario, but you’re offering services mainly to Quebec residents, you need to file with Revenu Quebec. Without a provincial license, you’ll be in non-compliance with the MSBA, leading to penalties.
Money Services Covered By Quebec MSB Registration
Quebec MSB registration covers financial services such as:
- Currency exchange
- Fund transfers (domestic or international)
- Operating ATMs or kiosks for virtual currencies
- Issuing money orders or cashing cheques for money
- Any services involving the transfer of funds or value on behalf of a client
If you offer one or more of these services to Quebec residents, you must complete the Revenu Quebec MSB registration form.
Revenu Quebec MSB License Vs FINTRAC MSB License: The Key Difference
Both agencies are concerned with preventing financial crimes by money service businesses. However, their framework and authority differ:
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The key steps you must follow for Quebec MSB registration involve getting a FINTRAC license first. Then, proceed with getting a Revenu Quebec MSB license to start your operations legally.
Revenu Quebec MSB Registration: How To Get A License
Applying for a Quebec MSB license involves several steps and strict requirements. Here is an outline of the process:
- Prepare Required Documentation
Quebec MSB Applicants must submit the following:
- Identification of the business and its officers
- Articles of incorporation and proof of business registration
- Information on services offered
- A physical address in Canada
- Compliance program documentation (including AML policies)
- Criminal Background Checks
Revenu Quebec MSB registration requires background checks for:
- Directors and senior officers
- Any person or entity holding 10% or more of the company
Applicants with prior fraud or money laundering convictions will likely be rejected.
- Financial Disclosure
You must demonstrate:
- Financial solvency
- Sources of startup capital
- Ongoing access to sufficient working capital
- Submit The Application To Revenu Quebec
You must file for your Revenu Quebec MSB license through the agency’s online portal. The targeted processing time for registration is 50 days. About 90% of MSB license Quebec online applications are approved within the targeted timeline.
- Await Approval And License Issuance
Once your application is reviewed and approved, you will receive your Revenu Quebec MSB license. You must:
- Display it prominently at your place of business
- Renew it annually by paying Revenu Quebec fees by 31st March of the relevant year
- Notify Revenu Québec of any material changes to your business
Failing to renew your license or operating without a license will lead to penalties.
What Happens If You Fail To Meet MSB License Quebec Requirements?
If you don’t meet MSB license Quebec requirements or operate without a license, you’ll face consequences such as:
- Fines of $5,000 to $50,000 for violations of MSBA by a natural person
- Fines of $15,000 to $200,000 for violations of MSBA by a legal person or entity
- An additional fine of $10,000 to $100,000 if your MSB license has been revoked under section 17 of the MSBA
Banks in Canada will also not partner with you if you have a FINTRAC MSB license, but not a Revenu Quebec license. This means you’ll not be able to open bank accounts for your business, obtain lines of credit, and purchase commercial insurance.
All the earlier fine values are doubled if it’s your second or subsequent MSB license violation. Revenu Quebec may also shut down your business if you have a consistent or prolonged history of operating without a license.
Quebec Licensing Is Non-Negotiable For MSBs: Let A Fintech Focused Law Firm Handle Your Registration
Revenu Quebec MSB registration is essential for offering money services and virtual currency services in the province. Getting a license requires you to submit various documents, pass inspections, and more.
That’s where the role of Renno Co. & Fintech comes in. We help your money service business expand to Quebec by completing your registration process. Contact us today to start your journey of listing in the Revenu Quebec MSB registry!
