Launching a fintech app in Canada has some legalities that you must navigate to ensure proper program development and launch. For example, your application must be compliant with the federal regulatory laws.
You also have to consider the Personal Information Protection and Electronic Documents Act (PIPEDA) and Proceeds of Crime and Anti-Terrorist Financing Act (PCMLTFA) for implementing data-related policies.Â
If you want to learn more about launching an intuitive and compliant fintech app, our legal advisor can assist. Take a look at our guide below to understand what boxes you must check before launching a fintech application.
What is a Fintech App?
A fintech app allows consumers to manage their finances online. As a money service business (MSB) or payment service provider (PSP), you can offer personalized financial services to your clients through a licensed fintech app. These may include:
- Quick approval of online credits
- Easy money transfers using smartphones, tablets, or iPads
- Low insurance premiums for Canadians
- Efficient wealth management through savings apps or budgeting tools
Fintech companies mainly rely on speed, automation, and accessibility when offering services. This is why they have to undergo a more rigid regulatory framework, unlike traditional banks.
Top 5 Legal Boxes to Check Before Launching a Canadian Fintech App
Before you build and launch a fintech app, you must take active measures to ensure regulatory compliance, such as MSB registration. Here are the legal boxes to check when developing a certified financial application:
- Obtain an Active Regulatory License
You cannot initiate fintech app development in Canada before registering your business. If you’re a MSB, you must complete FINTRAC license registration to operate legally. Meanwhile, the Retail Payment Activities Act (RPAA) registration with the Bank of Canada is mandatory for PSPs.
If you’re an entity besides MSB or PSP, you’ll have to adhere to the new AML regulations launching in October 2025. These rules require you to enroll with FINTRAC if you’re not already a registered MSB.
An additional provincial license will also be necessary if you’re launching the fintech app in Quebec. Revenu Quebec governs MSB operations in the province and has set additional regulatory requirements for businesses.
Having an active license prevents your fintech app from being considered illegal upon launch. It also saves you from facing sudden audits by federal or provincial regulatory agencies.
- Implement Anti-Money Laundering (AML) Policies and Know-Your-Customer (KYC) Requirements Across the App
Developing and implementing robust AML policies is non-negotiable for money service businesses, payment service providers, crypto exchangers, and other financial companies in Canada.Â
If you don’t have effective policies in place, you will risk your program being banned by the government. You must ensure your fintech app integrates the following AML and KYC requirements for compliance:
- Effective customer identity verification processes for accessing fintech app accounts
- Automations, technological, or manual measures to identify suspicious activity on the app
- Filing regulatory reports for large cash transactions
FINTRAC requires consistent real-time reporting of suspicious transactions and large cash transfers. Companies offering such services through a fintech app must ensure their program is capable of meeting the reporting requirements.
- Comply With PIPEDA
The Personal Information Protection and Electronic Documents Act governs the collection, use, and protection of personal information. For a fintech app, the regulation requires you to be transparent about your data collection policies and safeguard the personal information of all app users.
The act also limits businesses from gathering personal information that exceeds the minimum details required for identification purposes. This means you cannot ask customers to disclose information that may be too personal, such as their credit card pins or digital wallet passwords.Â
Understanding PIPEDA with the help of a fintech lawyer can allow you to check this legal box easily.
- Follow the Consumer Protection Act
If the fintech app you want to launch involves lending money or offering credit products to customers, you must adhere to the Consumer Protection Act (CPA). The regulatory framework requires you to disclose:
- Specific interest rates in simple language
- Any additional fees that may apply to the credit product
- Consumer rights related to refunds, chargebacks, and disputed payments
- Terms of service and privacy policies
A fintech compliance lawyer can help you develop refund policies, terms of service, and privacy policies that adhere to the CPA for a legal app launch.
- Create a Robust Tax Reporting System
All fintech apps involving cross-border transactions are exposed to tax regulations that one must meet diligently. You will have to review the Canada Revenue Agency’s (CRA) policies to understand your tax obligations.
During fintech app development, you must ensure automatic taxes are calculated using the latest regulatory laws and percentages. Deductions must also be made legally with transparency. Failing to implement tax reporting tools within your app and fulfilling MSB tax obligations could result in regulatory penalties.
How to Build a Compliant Fintech App?
Fintech app development is not just about coding. It’s about integrating compliance into every stage of development. Here are the steps for building a compliant fintech app in Canada:
- Define your business model – clarify whether you’re building a payments, lending, or investment platform
- Consult legal experts early – align with FINTRAC and Revenu Quebec provincial rules before beginning fintech app developmentÂ
- Integrate compliance by design – add KYC verification, AML monitoring, and reporting tools directly into the app
- Conduct security and penetration testing – validate that your system can withstand cyber threats
- Set up ongoing monitoring – keep a compliance team or legal partner for continuous updates on new regulations
Renno Co. & Fintech is a leading fintech law firm in Canada that can help you build a compliant financial app. Our advisors can suggest effective AML policies, implement robust compliance programs, register your business, and integrate compliant tools into your fintech application.
FAQs
What is a Fintech App for MSBs?
A fintech app for MSBs enables digital money services like transfers or currency exchange. It streamlines compliance with FINTRAC rules, ensuring secure transactions while supporting regulatory reporting obligations.
What is Fintech App Development?
Fintech app development is the process of designing financial technology platforms. It includes building secure features, integrating compliance systems, and ensuring regulatory approval before public launch.
What are the Risks of Making a Fintech App?
Risks include regulatory non-compliance, data breaches, and customer mistrust. Poorly secured apps may face fines, reputational damage, or even shutdown by financial regulators.
How to Mitigate Fintech App Development Risks?
Mitigation requires early legal consultation, robust AML/KYC integration, and strict cybersecurity measures. Regular audits, ongoing compliance monitoring, and clear data protection policies reduce long-term risks.
Let Renno Co. & Fintech Help You Launch a Compliant Fintech Application in Canada
Launching a fintech app is an exciting venture, but success requires more than great technology. Understanding what a fintech app is also means recognizing that compliance drives trust, sustainability, and growth.Â
From licensing to AML/KYC checks and cybersecurity, every legal box must be ticked before launch. If you’re exploring fintech app development, work with compliance specialists such as Renno Co. & Fintech who can guide you through Canada’s regulatory framework.
We help fintech businesses navigate licensing, audits, and compliance across the country. Contact us today to ensure your fintech app is ready for legal market launch.
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