MSB (Money Service Business) from Canada

MSB

An MSB is a business organization that is not part of the banking system but can perform certain types of financial transactions within Canada including, but not limited to:

  • Money transfer services
  • Digital currency trading
  • Payment systems
  • Financial agents
  • Currency dealers
  • Issuance and sale of remittances

With this license, companies are allowed to conduct transactions in Canadian dollars or foreign currency, both within Canada and in other countries. In addition, MSB companies can work with individuals and legal entities, including international companies, which opens up opportunities for expanding business and increasing the customer base.


*MSBs in Canada are supervised under the Anti-Money Laundering and Counter-Terrorist Financing Act and regulated by the Financial Transactions and Reports Analysis and Analysis Centre (FINTRAC).

MSB Requirements:

  • Must open a physical office in Canada.
  • Must be registered within FINTRAC.
  • Must comply and adhere to AML/CTF policies, risk control, and monitoring rules, and must have a compliance officer responsible for developing and complying with AML/CTF.
  • Must comply with client identification, record keeping, and reporting rules.
  • All founders, shareholders, and employees must be in good standing. Companies need to provide the regulator with certificates of non criminal record in his/her country of citizenship.
  • Must monitor suspicious transactions and report information to the appropriate government agencies.
  • At least one director with economic experience must be appointed to the company.

Our MSB Packages

MSB from New Company Formation:

  • Consultant to guide you through every step of the process
  • Full Company Formation
  • Corporate Documents
  • Personalized AML/KYC policy
  • AML Officer
  • Registration with FINTRAC
  • Handling of the communications between FINTRAC
  • Corporate bank account
  • Local Director
  • Local Office

Time Line: 3-4 Months

17.250 EUR

Ready Made MSB Company

  • Registered with FINTRAC
  • AML/KYC policy
  • Corporate Documents
  • Corporate bank account
  • AML Officer
  • Local Director
  • Local Office

Time Line: ~2 Weeks

34.000 EUR

FMSB (Foreign Money Service Business)

Same as an MSB with the exceptions of:

  • You do not have a physical location, employees, agents, nor branches in Canada.
  • You are not incorporated in Canada.
  • You direct services at persons or entities in Canada.
  • You provide these services to clients in Canada

FMSB Requirements

  • You do not have a place of business in Canada. (No Canadian registration, no physical presence, and no employees, agents, or affiliates in Canada).
  • If your company provides services to customers in Canada, this is determined by the following criteria: residential address; documents issued by the Canadian government; bank cards issued by a Canadian bank; the customer is temporarily living, working, studying, or vacationing in Canada.
  • Must be registered within FINTRAC.
  • Must comply and adhere to AML/CTF policies, risk control, and monitoring rules, and must have a compliance officer responsible for developing and complying with AML/CTF.
  • Must comply with client identification, record keeping, and reporting rules.
  • All founders, shareholders, and employees must be in good standing. Companies need to provide the regulator with certificates of non criminal record in his/her country of citizenship.
  • Must monitor suspicious transactions and report information to the appropriate government agencies.
  • At least one director with economic experience must be appointed to the company.

Our FMSB Package:

Obtaining the MSB license for your currently operational company which is based in a foreign country outside of Canada.

  • Consultant to guide you through every step of the process
  • Personalized AML/KYC policy
  • Registration with FINTRAC
  • Handling of the communications between FINTRAC

14.250 EUR

Canadian Crypto Regulations:

  • State fee for application - None
  • Required share capital - No minimum
  • Corporate income tax - 2-12%
  • Annual supervision fee - None
  • Local staff member - Not required, but recommended
  • Physical office - Required
  • Accounting audit - Not required
  • Bank account options - European EMIs

Canadian Tax Laws:

Cryptocurrency has the status of an asset. Therefore virtual currency transactions are subject to the Income Tax Act (ITA).

The rate depends on the annual income: from 15% to 33%.

Cryptocurrency entrepreneurs must consider the tax rates of the province where their company will operate and convert the value of cryptocurrency to CAD for tax purposes to confirm the transaction to the IRS.

We Recommend the Province of British Columbia.

  • Companies registered in British Columbia pay tax only on the income generated within British Columbia, and the rate for income received outside of Canada is 0%.
  • Corporate income tax is 12% for income over 300,000 CAD, which is one of the lowest rates in all of North America.
  • There is an additional tax credit that allows the reducing of the tax rate to 2% for income up to 300,000 CAD
  • All companies in Canada are obligated to remit a federal tax of 15%