Canadian MSB Registration
The Most Cost-Effective Alternative to European Electronic Money Institutions (EMI) License

Are you a European entrepreneur seeking an efficient way to kickstart your fintech business? Navigating the complexities of acquiring an Electronic Money Institution (EMI) license in the EU can be arduous and time-consuming. Patrola Law offers you an expedited alternative: Canadian Money Services Business (MSB) registration. Discover how you can propel your fintech business forward with the streamlined process of Canadian MSB registration.

Launching a fintech project necessitates permission or authorization to offer payment services. Acquiring an EMI license in any EU country or the UK can be an uphill battle, consuming more than a year and a half from inception to launch. The timeline can comprise roughly 3 to 4 months for document preparation, 9 to 15 months for regulatory authorization, and another 3 to 4 months to establish the fundamental payment infrastructure.

Given the lengthy and resource-intensive journey of EMI licensing in Europe, entrepreneurs often seek faster alternatives to kickstart their fintech ventures. Some businesses may explore the possibility of acting as an agent under a licensed BaaS (Banking as a Service) provider or registering as a small payment institution but these are not viable or ideal options for many businesses. Increasingly, companies around the world are pursuing a third, highly advantageous option – Canadian Money Services Business (MSB) registration.

The Canadian MSB registration is not a "license" but rather a registration in a specialized business services register maintained by the Canadian regulator, FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). FINTRAC is tasked with combating money laundering and terrorist financing activities in Canada by imposing specific obligations on registered MSBs, and regulating for compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) in Canada. It takes a few short months for most companies to register as a Money Services Business (MSB) or a Foreign Money Services Business (FMSB) with FINTRAC.

A company qualifies as an MSB if it offers at least one money service to the public and has a place of business in Canada. The MSB services include foreign exchange dealing, remitting or transmitting funds, issuing or redeeming money orders, dealing in virtual currency, and crowdfunding platform services. A foreign company falls under FMSB if it offers money services, doesn't have a place of business in Canada, directs its services at individuals or entities in Canada, and provides these services to clients in Canada with connections to the country.