Canada continues to attract fintech entrepreneurs, crypto investors, and international payment companies thanks to its stable legal environment, robust regulatory framework, and international reputation. But since 2025, the bar has been raised. Changes to FINTRAC procedures, a tightening of anti-money laundering controls, and the progressive rollout of the Retail Payment Activities Act (RPAA) have created a new set of challenges for anyone wishing to obtain or maintain a Money Services Business (MSB) license.

In this guide, we break down the MSB Canada requirements for 2026, focusing on both the initial registration process and the ongoing compliance obligations. Whether you’re launching a remittance company, a crypto service, or a forex platform, this article will help you understand what it takes to operate legally—and sustainably—in Canada.

1. What Is Considered an MSB in Canada?

In Canada, a business is considered a Money Services Business if it offers one or more of the following services:

• Money transfers (domestic or international),
• Currency exchange,
• Dealing in virtual assets (including crypto),
• Issuing or redeeming payment instruments (e.g., money orders, traveller’s cheques),
• Prepaid card and e-money services.

As of 2026, any company dealing with virtual assets, even occasionally, must register as an MSB. FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) is the federal body in charge of registration and supervision.

For an introduction to the basics of MSB registration, see our previous article;

2. Requirements to Obtain an MSB License in Canada (2026)

Registering a compliant MSB begins with incorporating a legal entity in Canada, followed by submitting a registration application to FINTRAC.

The following elements are essential:

• Company documentation: articles of incorporation, shareholder registry, and proof of physical address.
• Personal documentation: IDs and background checks for all beneficial owners and directors.
• Compliance framework: A comprehensive AML/ATF program including:
  • Internal risk assessment,
  • KYC and transaction monitoring policies,
  • Designation of a compliance officer who resides in Canada.

The business must also demonstrate operational presence in Canada, such as having an office or local representative. Without this, the license will not be approved.

You can find more details about the process on the Government of Canada’s MSB registration site.

3. Ongoing Compliance Obligations in 2026

Obtaining an MSB license is only the beginning. In 2026, maintaining your registration requires consistent compliance with federal reporting and internal procedures:

• Ongoing FINTRAC reporting, including:
  • Large cash transactions (LCTRs),
  • Suspicious transaction reports (STRs),
  • Electronic fund transfers (EFTs).
• Annual updates to your AML program and risk matrix,
• Employee training in AML compliance,
• Independent compliance review (external audit),
• Notification of any changes in ownership, business model, or risk exposure.

Neglecting these requirements may result in regulatory sanctions or even license suspension.

4. New Risks in 2026 for Non-Compliant MSBs

With the expansion of the Retail Payment Activities Act, Canadian regulators are tightening their oversight of MSBs—especially those active in crypto or cross-border services.

Financial institutions now apply strict onboarding criteria. Without a clear compliance structure, MSBs face banking rejection, frozen accounts, or enhanced due diligence reviews.

In 2026, FINTRAC has expanded its enforcement power. Penalties for non-compliance may include:

• Administrative fines of up to CAD 500,000,
• Suspension or revocation of the MSB registration,
• Ineligibility for banking or payment partnerships.

5. Key Takeaways Before Launching Your MSB in Canada

If you plan to register an MSB in Canada in 2026, remember:

• You need a local entity and a compliance officer based in Canada.
• Your AML/ATF program must be documented, operational, and up-to-date.
• FINTRAC registration is mandatory, even if your activity is limited to crypto or niche financial services.
• You must plan for ongoing compliance and audits, not just registration.

For a full overview of our MSB services, visit our dedicated page.

How Mundo Offshore Can Help

At Mundo Offshore, we specialize in helping international entrepreneurs and fintech companies navigate the regulatory environment in Canada. Our team supports you through:

• Full company setup in Canada,
• Tailored AML/ATF program development,
• FINTRAC registration from A to Z,
• Bank account support—even for high-risk or crypto-linked MSBs,
• Ongoing compliance services and audits.

We ensure that your MSB is not only registered—but also fully equipped to operate and scale in a compliant and sustainable way.

Ready to launch your MSB in Canada in 2026?
Contact our team today and let us guide you through every step.