Following last April’s Notice about amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties (PCMLTFAMP) Regulations, we wish to remind reporting entities that crowdfunding platforms and certain payment service providers are covered as money services businesses (MSBs) or foreign money services businesses (FMSBs) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). This means that businesses engaged in crowdfunding platform services and certain payment services have MSBs or FMSBs obligations under the PCMLTFA, including the need to register with FINTRAC. For detailed information about these obligations, see information about MSBs and FMSBs.

Further to these amendments, FINTRAC has retracted its position with respect to merchant servicing and payment processing (PI-7670).

Pursuant to paragraphs 5(h)/(h.1) of the PCMLTFA, a person or entity is an MSB or FMSB (subject to additional criteria) if engaged in the business of providing any of the following services:

• Foreign exchange dealing (conducting transactions where one fiat currency is exchanged for another fiat currency);
• Remitting or transmitting funds by any means or through any person, entity or electronic funds transfer network;
• Issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments (except for cheques payable to a named person or entity); 
• Dealing in virtual currency, which includes both virtual currency exchange and value transfer services; or
• Any prescribed service.

Reference: PCMLTFA, S.C. 2000, c 17, s. 5(h), PCMLTFRR, SOR/2007-121, s. 1 and PCMLTFR, SOR/2002-184, s. 1(2).

As payment services are not a prescribed service under the PCMLTFA, FINTRAC is taking the position that persons or entities that provide invoice payment services or payment services for goods and services are engaged in the business of remitting or transmitting funds, or dealing in virtual currency.

If a person or entity’s activities include the following, they are engaged in providing MSB services and are subject to the PCMLTFA as an MSB or FMSB (subject to additional criteria).

1. Invoice payment services A person or entity is providing invoice payment services when they act as an intermediary between a payer and a payee to make payments to invoices, such as those pertaining to utilities, payroll and commission, mortgage and rent, or tuition. Exception:A person or entity that solely receives payments on behalf of the payee to settle a debt, and does not further transfer the payment instructions to the original payee.
2. Payment services for goods and services A person or entity is providing payment services for goods or services when:
   1. they receive payment instructions and act as an intermediary between a payer purchasing goods or services and a payee supplying goods or services;
   2. the payer consents to make the payment for the goods or services through them; and
   3. the payee has an agreement with them to have access to the transfers carried out as payment for the goods or services.
   Exceptions:
   1. A person or entity that solely accepts a payment for goods or services that they supplied to their own customer.
   2. A person or entity that solely provides hardware (for example, a physical payment terminal), and does not offer any other associated payment services

FINTRAC is currently working with businesses to register certain payment service providers over the next several weeks. The regulatory amendments and FINTRAC’s retraction of its previous positions may also affect MSBs and FMSBs already registered with FINTRAC.

Registering with FINTRAC as an MSB or FMSB

Crowdfunding platforms that provide services to raise funds or virtual currency and certain payment service providers must register as MSBs or FMSBs.

MSBs and FMSBs that are already registered with FINTRAC, and which offer services now subject to the Act, must update their registration information to reflect this.

For information on how to register as an MSB/FMSB, visit the following pages on our website:

• Check to see if you need to register with FINTRAC
• Register your MSB or FMSB with FINTRAC
• Update your registration information with FINTRAC 

We understand that there will be challenges in meeting certain obligations. FINTRAC will be reasonable in its assessment and enforcement approach, and is committed to working with reporting entities subject to the PCMLTFA and its Regulations to increase their awareness, understanding and compliance with their obligations. Please continue to monitor our website for updates or additional guidance.

FINTRAC does not charge registration fees.

Certain persons or entities are not eligible to register and therefore cannot operate a money services business or foreign money services business.

Money services businesses operating in Canada, and foreign money services businesses that direct and provide services to clients in Canada, must register with FINTRAC before they begin to operate. Even if you are registered or licensed as a money services business with a province or territory, you still have to register with FINTRAC.

To register

Step 1:

Complete the Web form: Pre-registration request for money services business or foreign money services business. You will be contacted by a FINTRAC compliance officer and provided with a registration form to complete.

Step 2:

To complete your registration form, you will need the following information, if applicable:

• bank account information;
• information about your compliance officer;
• number of employees;
• incorporation information (if your business is a corporation);
• information about your MSB’s owners and senior management, such as their name and date of birth;
• an estimate of the expected total dollar amount of transactions per year for each MSB service you provide;
• detailed information about every location; and
• detailed information about every MSB agent.

Step 3:

Once completed, you will be required to submit your registration form and other required information to FINTRAC using the secure Canada Post Connect message that will be provided by a FINTRAC compliance officer during the time of the registration process.

Police record checkTranslation of the police record checkRepresentative for service in Canada

After you submit your registration form

We will process your form and will send you one of the following:

• your registration approval notice and your registration number;
• a clarification request – see Answer clarification requests or;
• reasons why we have denied your registration.

Once your registration form is approved, some of the information provided will be made available to the public and displayed on FINTRAC’s Money Services Business Registry.

If you do not register, you may be assessed penalties or incur other consequences.

The Bank of Canada today published the list of companies that have applied to be registered under the Retail Payment Activities Act (RPAA). The publication of the applicants’ list is the latest milestone as the Bank takes on the mandate of supervising retail payment service providers.

The Bank estimates that companies that have applied to register, whether located in Canada or abroad, represent a majority of the Canadian retail payment service market.

“I’m pleased by the extent of companies that applied to register,” said Ron Morrow, Executive Director of Payments, Supervision and Oversight at the Bank of Canada. “The size and scope of companies on the list show how seriously members of the payments community are taking their obligations under the law, and that this new supervisory regime is off to a good start.”

The searchable list will be regularly updated as more companies submit applications. The list does not include companies working with the Bank to clarify whether they are in scope of the RPAA.

The Bank is following up with companies it believes are in scope of the Act but have not yet applied to register.

“Companies need to be on the applicants’ list in order to keep legally offering retail payment services,” said Carol Brigham, Managing Director of the Bank’s Supervision Department. “Those that haven’t applied but continue to operate may be violating the law and subject to enforcement actions.”

Under the RPAA, the Bank can encourage compliance through enforcement actions such as monetary penalties and court orders.

Over the next 10 months, the Bank will review the applications it receives, and the Department of Finance will conduct national security reviews of the applicants. On September 8, 2025, the Bank will start to publish a list of successfully registered applicants, as well as a list of any applications that were refused.

After that date, all payment service providers operating in Canada will be required to show how they are meeting legislative requirements for managing key risks and safeguarding users’ funds. By registering with the Bank and complying with the legislation, payment service providers give Canadians confidence in the retail payment services they use every day.

“The companies that have applied to register have taken an important first step,” Ms. Brigham said. “Now, it’s up to them to look at their operations, determine if they meet our supervisory expectations, and make any changes needed.”

Content Type(s): Press, Press releases

Topic(s): Retail payments supervision