Payments, MSB and Anti-Money Laundering Legal Services

Registration requires information on the business, its ownership, the services offered, agents and banking relationships. There is no minimum capital requirement, and foreign nationals can own and direct the business. Certain criminal convictions make a person ineligible.

Businesses serving Québec need a separate licence from the AMF under the Money-Services Businesses Act, in addition to FINTRAC registration. Plan for a longer review and background checks on owners, directors and key people.

MSBs must apply enhanced measures to transactions linked to jurisdictions named in ministerial directives, and screen customers and transactions against Canadian sanctions lists.

Report changes to registration information within 30 days and renew registration every two years. We maintain a calendar so renewals are not missed.

The Act lists five payment functions:

• Providing or maintaining an account for an end user.
• Holding funds on behalf of an end user.
• Initiating an electronic funds transfer at an end user's request.
• Authorising or transmitting an electronic funds transfer.
• Clearing or settling an electronic funds transfer.

Some entities and incidental activities are excluded, so each business model needs its own analysis.

We prepare the registration, coordinate with any FINTRAC filing so information is consistent, and respond to Bank of Canada questions.

A documented framework covering operational risk, incident response, and notification to the Bank and affected end users when incidents occur.

Funds held for end users must be safeguarded, either in a trust account or a segregated account protected by insurance or a guarantee, with reconciliation and records.

Annual reporting and advance notice of significant changes or new activities.

Client identification, beneficial ownership, politically exposed persons, record keeping, reporting and ministerial directives, kept current and approved by senior management.

An assessment of your clients, products, delivery channels, geography and new technologies, with enhanced measures where risk is high.

A named officer with the authority, resources and access to senior management to implement the program, in-house or with outsourced support.

Written ongoing training for staff and agents, and an effectiveness review at least every two years.

Suspicious transaction reports, large cash and large virtual currency transaction reports of $10,000 or more, international electronic funds transfer reports, and terrorist and listed-person property reports.

Required originator and beneficiary information must travel with funds and virtual currency transfers, and records must be kept for at least five years.

A due diligence package covering registration, ownership, AML program and flow of funds, and introductions to institutions that serve MSBs and payment businesses.

Review and negotiation of processor, sponsor bank and card program agreements, including incentive and compliance terms.

Agreements and controls for agents, mandataries and partners whose activities fall within your compliance program.

Preparation for desk and on-site examinations, document production, staff interviews and a consistent written response.

Assessment of the alleged violations, representations to FINTRAC, review requests and appeals.

Remediation plans with owners and deadlines that address findings and show the regulator the program now works.

Responses to provincial licence inquiries and RPAA supervisory requests, coordinated with your FINTRAC position.

No. Foreign nationals can be shareholders, directors and, in many cases, the compliance officer. There is no minimum capital requirement. A domestic MSB needs a Canadian address, and the compliance officer must genuinely perform the role.

No. Registration confirms that you have met the obligation to register under the PCMLTFA. It is not an endorsement or approval of your business, and should not be described to customers as a licence.

No. All five program elements must be in place before you start offering services. A missing element can make the whole program non-compliant in an examination.

Possibly. The two regimes have different purposes. FINTRAC covers money laundering and terrorist financing; the RPAA, supervised by the Bank of Canada, covers operational risk and safeguarding of end-user funds. Many payment businesses fall under both.

A separate money-services business licence from the AMF under Québec's Money-Services Businesses Act, with its own background checks and a longer review than federal registration.

Usually around 3–6 weeks after a complete filing, but building the compliance program properly typically takes 2–4 months end to end.

The deadline is stated in the notice. Complete internal verification first and keep every answer consistent with your policies, records and previous filings.