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Regarding the Canadian nuances of MSB registration, there is a lot of confusing and extremely incomprehensible information, which often misleads a person who wants to start working in this area. Companies that offer financial services to consumers are required to register and obtain FINTRAC approval. However, the term “license” itself is not used by the regulator: rather, the authority formalizes the company and grants it the appropriate status. After registration, all information regarding the MSB structure is entered into a public register.
In addition, the requirements that this type of company must comply with vary depending on a particular region. The province of Quebec requires the firm to, among other things, comply with anti-money laundering regulations, which also require a license for each of the activities carried out by the company within Quebec.
In accordance with the provisions of the Law of Quebec regarding the regulation of the field of monetary services, MSBs in Quebec must also comply with all the rules prescribed in this regulation. In addition, for non-compliance with certain rules, the company may be subject to appropriate sanctions and inspections.
Talking about Canadian nuances of MSB registration, it should be also mentioned that in other regions of Canada, for example, in the province of British Columbia, the regulatory framework for MSB structures is formed jointly with the public, that is, in collective consultation with potential consumers of these services and their providers. In particular, particular attention is paid to the question of whether a separate license is required from the provincial regulator.
In addition to the AML requirements, which MSBs must comply with, there are also a large number of other provisions that are also important for such companies. The latter include tax obligations, rules on confidentiality of information, and so on.
One important point is that FINTRAC registration does not always mean that an MSB structure can offer its services and products outside of Canadian jurisdiction. Among other things, MSBs must also comply with the rules and relevant laws in the jurisdictions in which they operate directly. This is especially true when it comes to the operation of the Long Arm Law, more precisely, the jurisdictions that comply with this Law. MSB should carefully study the rules and laws governing this activity in the jurisdiction, and pay special attention to the procedure for registering a company and obtaining the necessary license.
If you want to start operating in this field, recommend you to consider ready licenses for sale. We will help you completely and give you professional advice. Contact us in the way the most convenient for you.
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.