MSB Registration and Licensing in Canada

Today, Canadian banks and the entire financial system are considered one of the most reliable in the world, and in 2020 this country entered the top ten and stable economies, ranking 9th. Of course, the financial sector is supported by the work of banks, financial institutions and payment systems. One such option is the MSB license, which allows companies to target their services not only to Canadians, but also to clients around the world. However, MSB Registration and Licensing in Canada is very complicated issue that requires professional evolving.

Having such permission, organization may offer following services.

  • Currency exchange.
  • Trading in virtual currency. This includes virtual currency exchange and virtual currency transfer services.

– funds for virtual currency;

– virtual currency for cash;

– virtual currency to another virtual currency.

Services for the transfer of virtual currency as a means of payment include:

– transfer (send) of virtual currency at the request of the client;

– receiving a transfer of virtual currency for transfer to the recipient.

Benefits of Canada, Purposes and Key Powers of Licensees

The Canadian banking system is positioned as one of the most reliable in the world. Today, the country is characterized by a stable economy, which ranks 9th globally and meets global requirements, in particular, in terms of innovation, the use of advanced technological solutions, and standards aimed at protecting property rights.

If you are interested in obtaining a license in this jurisdiction for making money transfers, please note that the country has many other advantages, such as:

  • Political and social stability.
  • Strong geopolitical position with access to all US and Mexican markets.
  • High level of economic freedom.
  • Reliable financial system.
  • A business-friendly regulatory environment.
  • Transparent and open market.
  • Highly skilled workforce.
  • Low corporate tax regime.
  • Robust legal system and rule of law.
  • Low standard costs.

What Can Be Done to Comply with AML/CTF Requirements?

There is an active fight against money illegal circulation all over world, in connection with which regulators must be aware of the legitimacy and transparency of business. In Canada, as in the rest of the world, there are AML/CTF rules that must be followed. Compliance program includes 4 points:

  • Firm must have a compliance employee on its staff. This is the person who will be responsible for developing and maintaining the Canadian AML/CTF program. The specialist can be located anywhere in the world – not necessarily in Canada. It is also responsible for the implementation of legal and regulatory requirements.
  • Apply, document and conduct a risk assessment, including mitigation measures and strategies. Such a document should include a description and risk assessment of how the company’s business can be used for money laundering.
  • Develop and enforce written compliance policies and procedures that are legally compliant and approved by senior officials. It is also necessary to prescribe the duties of employees in accordance with the regulatory framework.
  • Develop and maintain a written training program for employees, agents and others authorized to act on MSB’s behalf. This means that there should be a program of such training, examinations (tests) in order to make sure employees realize their roles, functions and obligations.

Review your program biennially for compliance with the AML/CTF policy to verify its effectiveness. Checking all procedures, rules, risk assessments, knowledge and skills of specialists is necessary in order to understand the effectiveness of the development of the program and whether it complies with the norms of the law.

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