MSB Lawyer & Consultant Canada

No law requires one, but registration involves choosing the right MSB category, disclosing beneficial owners, and standing behind an AML program. Mistakes can delay approval or put your banking at risk. A lawyer confirms your classification, prepares what FINTRAC expects, and lowers the chance of a failed first submission.

Every MSB compliance program needs five elements: a compliance officer, written policies and procedures, a documented risk assessment, an ongoing training program, and an effectiveness review at least every two years. Since March 2026, the program must also be reasonably designed, risk-based, and effective, so it should reflect your actual clients, products, and delivery channels.

Revocation removes your legal right to operate as an MSB in Canada and often costs you your bank accounts. FINTRAC can revoke for reasons such as ineligibility or failing to answer its requests. In past matters, strong representations have led FINTRAC to withdraw or modify a notice. A revoked business can request a review within 30 days. Every case depends on its facts, and no outcome can be guaranteed.

With complete, accurate documents, registration often takes two to six weeks from submission. Delays usually come from missing beneficial ownership details, vague service descriptions, or an AML program that is not ready. Registration then lasts two years before renewal, and FINTRAC does not charge a fee. If timing matters, weigh registering a new MSB or buying one.

The risks come from three directions. Criminally, the PCMLTFA allows fines and imprisonment for operating without registration. Administratively, Bill C-12 raised maximum penalties per violation after March 26, 2026, to $40,000 for minor, $4 million for serious, and $20 million for very serious violations. Practically, Canadian banks rarely serve unregistered MSBs. A classification assessment before launch removes the guesswork.

An MSB has a place of business in Canada, meaning it is incorporated here or has an office, employees, agents, or branches here. An FMSB has no Canadian place of business but directs and provides money services to people or entities in Canada. Both must register before operating and carry the same core compliance duties.

Respond in writing before the deadline in the Notice, often around 30 days, addressing each cited deficiency and showing what you have fixed. Avoid contacting FINTRAC or sending anything without legal advice, since an unrepresented reply can weaken your position. Treat the deadline as fixed and start the day the Notice arrives.

Yes. Administrative monetary penalties have their own review and appeal route, separate from revocation, with short deadlines. With maximum amounts now far higher after Bill C-12, a represented challenge to the amount and the findings matters more than ever. Results depend on the facts.

MSBs must meet several FINTRAC reporting requirements. A Large Cash Transaction Report is due within 15 calendar days for cash of $10,000 or more, and a Large Virtual Currency Transaction Report within 5 working days for virtual currency of $10,000 or more. Remittance businesses also file Electronic Funds Transfer Reports for international transfers of $10,000 or more. Suspicious Transaction Reports are filed as soon as practicable whenever there are reasonable grounds to suspect money laundering or terrorist financing. The 24-hour rule applies to the threshold-based reports.

Call an MSB lawyer the day the Notice arrives, because the response window is short. Preserve all compliance records exactly as they are, including AML policies, KYC files, transaction logs, training records, and audit reports. Read the Notice closely and list each PCMLTFA provision and deadline it cites. Write down a factual account of what went wrong while details are fresh. Do not contact FINTRAC or send any response until you have legal advice.

Expect to provide your legal name and address, business structure and ownership, the names and addresses of beneficial owners and directors, the MSB services you offer, your service locations, your compliance officer's contact details, and bank account information. You will also need identity documents for owners and directors and a description of your AML program. Gaps or errors in these materials are among the most common reasons registrations stall or fail.

Under the PCMLTFA, MSBs generally keep compliance records for at least five years from the transaction date or the date the record was created. That covers client identification, transaction records, large transaction reports, policies and procedures, training records, and risk assessments. FINTRAC examiners routinely ask for records from several years back.

Yes. Canadian banks run their own AML due diligence on MSB clients, and it usually goes further than FINTRAC registration. We help you assemble the compliance documents banks ask for, adjust operations to meet their expectations, and answer due diligence questions clearly, which gives you a much better chance of opening and keeping a business account.