Canada is a respectable jurisdiction with a high level of economic development and all the conditions necessary for doing business. Thanks to its well-developed banking infrastructure and flexible industry-specific regulation, this jurisdiction is optimally suited for organizing a payment business, which can be launched by obtaining a payment license — namely, a Money Service Business (MSB) license. We invite you to take a closer look at the opportunities offered by the Canadian payment license and the process of obtaining one.
An MSB is a non-bank financial institution authorized to provide a range of payment services. Within the scope of its activities, such an institution is entitled to provide the following services:
MSB licenses are issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The law provides for two categories of payment licenses — MSB and FMSB (Foreign MSB). Both types of licenses offer the same capabilities; the only difference is that MSB licenses can be obtained by companies registered in Canada, while FMSB licenses are intended for foreign companies. Basic requirements for applicants:
The main difference in requirements for applicants, depending on the type of license, is that to obtain an MSB license, the applicant must provide proof of a full presence in the country — a director and AML officer who are Canadian residents, a real local office, and an open account with a Canadian bank. No such requirements apply to a foreign applicant — the main condition is that the company must not be registered in a jurisdiction included on sanctions lists. As a result, obtaining a license for a non-resident company turns out to be easier than establishing a full local structure.
To obtain an MSB/FMSB license, the applicant must submit the following package of documents to FINTRAC:
Review of the application usually takes 3–6 months. If a positive decision is made, FINTRAC enters the applicant company into the register of licensed operators and assigns it a corresponding license number. From that moment on, the company can fully provide its services to clients.
The Canadian license has a number of advantages, including:
To summarize the above — the Canadian MSB license is a fairly versatile tool that makes it possible to provide international payment services. Such a license can serve as a dynamic launch point for a new business or complement the structure of an already operating one. If you are ready to begin the process of obtaining a payment license in Canada but still have questions, please contact the specialists at Solex Group — we will be glad to help you through this process.
Keywords: payment system, payment license, Canada, MSB, payment services, EMI, PSP.
An MSB is a non-bank financial institution authorized to provide a range of payment services. Within the scope of its activities, such an institution is entitled to provide the following services:
- currency exchange transactions;
- B2B/B2C payment transfers;
- digital currency transactions (exchange and transfer of cryptocurrencies);
- holding of funds (e-wallet);
- merchant acquiring services (processing of bank card payments);
- organization of crowdfunding platforms.
MSB licenses are issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The law provides for two categories of payment licenses — MSB and FMSB (Foreign MSB). Both types of licenses offer the same capabilities; the only difference is that MSB licenses can be obtained by companies registered in Canada, while FMSB licenses are intended for foreign companies. Basic requirements for applicants:
- the company's core business must be the provision of financial or payment services;
- the company must have an AML policy and appoint an AML officer;
- there are no requirements regarding a minimum amount of share capital;
- the company's beneficiaries must have the appropriate qualifications and an impeccable business reputation.
The main difference in requirements for applicants, depending on the type of license, is that to obtain an MSB license, the applicant must provide proof of a full presence in the country — a director and AML officer who are Canadian residents, a real local office, and an open account with a Canadian bank. No such requirements apply to a foreign applicant — the main condition is that the company must not be registered in a jurisdiction included on sanctions lists. As a result, obtaining a license for a non-resident company turns out to be easier than establishing a full local structure.
To obtain an MSB/FMSB license, the applicant must submit the following package of documents to FINTRAC:
- a package of corporate documents for the company;
- information on the company's structure, including details on the director and management, the AML officer, and the number of employees;
- identification data of the beneficiaries;
- a detailed business plan;
- the company's bank account details;
- a license application.
Review of the application usually takes 3–6 months. If a positive decision is made, FINTRAC enters the applicant company into the register of licensed operators and assigns it a corresponding license number. From that moment on, the company can fully provide its services to clients.
The Canadian license has a number of advantages, including:
- A simplified licensing procedure.
- Unlike European regulation, there are no requirements for a minimum amount of share capital.
- A relatively short licensing timeframe.
- The ability for foreign companies to obtain a license without strict local substance requirements.
- A wide range of services that a licensed operator can provide.
To summarize the above — the Canadian MSB license is a fairly versatile tool that makes it possible to provide international payment services. Such a license can serve as a dynamic launch point for a new business or complement the structure of an already operating one. If you are ready to begin the process of obtaining a payment license in Canada but still have questions, please contact the specialists at Solex Group — we will be glad to help you through this process.
Keywords: payment system, payment license, Canada, MSB, payment services, EMI, PSP.