CanadaKey Benefits and Advantages of Obtaining an MSB License in Canada

August 14, 2023by Tetra Consultants0
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  • Canada is one of the largest countries in the world having a large population base that makes it an important economic center that contains a developed legislative framework suitable for almost all business types. An individual who needs to execute a fintech project and serve payment services needs to opt for various permissions to execute such operations. Canadian Money Services Business (MSB) license is one of the registers under which one can register to execute business. 
  • Canada MSB license is not particularly a license but a registration in a special register of businesses that enables a business to provide payment services that are sustained by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). MSB licenses in Canada are needed to satisfy all the rules, regulations and obligations which is required by the Proceeds of Crime (Money laundering) and Terrorist Financing Act (PCMLTFA) and various associated obligations to eliminate money laundering and terrorist activity in Canada. 
  • MSB licensing in Canada is required for companies offering services such as foreign exchange dealings, remitting funds, issuing or redeeming money orders, cheques or any financial instrument, dealing in digital currencies, providing crowdfunding platform services, or any company whose place of business is situated in Canada. Further, The Foreign Money Service Business can only be registered by those companies that are engaged in any one MSB services, whose business is situated outside Canada, whose business is directed towards the persons or entities in Canada, or whose services have been provided to those clients who have connection and ties with Canada. 
  • Moreover, Tetra Consultants can help you if you are preparing to attain MSB License in Canada. Along with the licenses, Tetra Consultants can help you with company incorporation, and open a corporate banking account, which includes advisory services, compliance review, and preparation of business plans and policies.  

Key benefits and advantages of obtaining an MSB license in Canada 

The key benefits and advantages of obtaining MSB licenses in Canada are as follows:

  • Legal compliance:

All organizations which are involved in financial services must be obtained an MSB licensing in Canada. By obtaining these licenses businesses can ensure that they are operating legally and they can comply with the rules and regulations and adhere with the law. Legal licensing also ensures that investors are safe and they are not investing in an unlicensed company. Without legal licensing, it can be considered that the individuals who continue business without a license are fraudsters and there also present the risk of losing money to them. Their presence needs licensing which is that the ordinary user may refuse to work or cooperate with such platforms that do not have license and they are also scared of being deceived. It can also be suggested that the platform the individual is using must be licensed because government agencies can block the entity for not licensing and can be charged with fraud or tax evasion.  

  • No deposit required: 

Unlike other countries’ MSB licenses, there presents no deposit of any specific amount to be paid in cash. The process does not involve any deposits to be paid for obtaining an MSB license in Canada. To obtain the MSB license in Canadian jurisdiction an individual would probably need to register a company in Canada which involves a local person who acts like a director and also 1 anti-money laundering officer who must be a resident of the country. There is no associated fees for the 

  • MSB has a good reputation and fewer complaints:

As the financial sector is concerned it has been seen that the Canadian financial sector is a safe, stable, and reliable sector of the economy. This stable safe and reliable economy is because of the banking institutions which make the financial sector strong and trustworthy for the people which can be seen in the history of the Canadian financial sector. As time is rapidly changing and innovations and activities are taking in every sector of the industry which gives birth to new opportunities for new and existing companies in the economy. 

  • Obtaining an MSB license is time efficient: 

The Canada MSB licenses took less time than any other licensing. The time may vary from two months to five months depending on the documents. When compared with the different European financial licenses it is quite time efficient. The MSB license in Canada is preferred because of other factors which are registering charges with the BC registrar takes up to 1-2 days and the approval from the new Ultimate Beneficial Ownership Rules UBO with the regulator Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) takes up to 1-2 weeks which is quite fast and helpful for the business to execute their business. 

  • Flexibility: 

The MSB license in Canada enables an individual with the license to perform various other services such as Foreign exchange dealings, remitting and transmitting funds, issuing or redeeming money orders similar to any negotiable instrument, trading in virtual or digital currencies, and providing services of crowdfunding on the platform. Through providing such services it becomes very feasible for the individual to obtain such licenses which can be used for a variety of purposes. The MSB and FMSB (Foreign Money Service Business) include all these services which makes it an attractive choice for the business owner along with that it also attracts the investors because of its flexibility. 

  • International Expansion: 

Obtaining the MSB license helps the business to expand its business operations at the international level. The MSB license demonstrates legality and compliance with Canadian rules and regulations. Thus, helps in the expansion of the business at the international level. Tetra Consultants can help with you the expansion of your business through various valuable services which is 

Conclusion:

  • There have been various several good reasons for obtaining the MSB license in Canada. The Canadian jurisdiction provides it with an international reputation which makes the company seem a more safe and reliable entity which is an important aspect for any company. The MSB license can be obtained through an online application and is also time efficient which is needed by many business owners. Moreover, it is important for businesses registered under MSB licensing to comply with the rules and obligations mentioned in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and other regulations as specified by the Canadian rule of law. The MSB is being regulated by Financial Transactions and Reports Analysis Centre of Canada to which the business must be registered to apply for the MSB licensing. 
  • Contact us for obtaining an MSB license in Canada and our team will reach you within 24 hours. Along with this service, Tetra Consultants also provides various other services which are required by businesses to operate in Canada. Those services include offshore company incorporation, offshore financial licensesregulatory compliance consulting, corporate bank account opening, nominee director and shareholder services, and international trademark registration. Our dedicated team and efficient staff members are equipped enough to comply and consult regarding the building of a business along with the valuable services provided. 

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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