Money transmission in Canada is regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The unit is Canada’s financial intelligence unit with mandate to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities.
Fintrac divides the money transmission types into two groups and provided an organization offers services to the public in either group, they are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act:
Money Services Business (MSB):
- You offer one or more of the following services to the public:
- Foreign exchange dealing
- Remitting or transmitting funds
- Issuing or redeeming money orders or similar negotiable instruments, or
- Dealing in virtual currency
- You have a place of business in Canada:
- You are incorporate in Canada
- You have a physical location in Canada, or
- You have employees, agents, or branches in Canada
Foreign Money Services Businesses (FMSB):
- You offer one or more of the following services to the public:
- Foreign exchange dealing
- Remitting or transmitting funds
- Issuing or redeeming money order or similar negotiable instruments
- Dealing in virtual currency
- You do not have a place of business in Canada:
- You are not incorporated in Canada
- You do not have a physical location in Canada, or
- You do not have employees, agents, or branches in Canada.
- You direct services at persons or entities in Canada: For example:
- Your business’s marketing or advertising is directed at persons or entities located in Canada.
- Your business operates a “.ca” domain name.
- Your business is listed in a Canadian business directory.
- You provide these services to clients in Canada: For example:
- Your client’s address is in Canada
- The document or information used to verify the client’s identity is issued by a Canadian province or territory, or by the federal government
- Your client’s banking, credit card or payment processing service is based in Canada.
Contact us to discuss your Canada money transfer need. We work with well-informed local consultants with whom we share mandates on consults.
