Registration of Money Services Businesses

 

The obligation to register money services businesses is a legal requirement that was created with recent amendments to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The registration is free and will be mandatory for all money services businesses in Canada.

Who will have to register?

The requirement to register applies to all money services businesses in Canada. This includes alternative money remittance systems such as Hawala, Hundi or Chitti. A money services business is an individual or entity engaged in the business of any of the following:

• foreign exchange dealing;
• remitting or transmitting funds by any means or through any person, entity or electronic funds transfer network; or
• issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named person or entity.

If you are engaged in any of these activities, but only as an agent for a money services business, you do not have to register.

How to register

Online registration will be available in May, 2008. You will be required by law to register electronically if you have the technical capability to do so. To assist you, FINTRAC will offer a Guide for Money Services Businesses Registration on its website. This guide has more information about the registration process, including step-by-step instructions for completing the Application for Registration. For those who do not have the technical capability to register electronically, there is a paper registration process that is available by calling our toll-free line.

After completing the initial registration, registrants must:

• inform FINTRAC of changes to key information;
• renew their registration every two years; and
• advise FINTRAC if they cease operations.

What is FINTRAC?

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), is Canada's financial intelligence unit, a government agency created to collect, analyze and disclose financial intelligence on suspected money laundering and terrorist financing activities. Created in July 2000, FINTRAC is an integral part of the global fight against money laundering and terrorist activity financing.

What does FINTRAC do?

FINTRAC is the registrar of money services businesses and ensures compliance of these and other entities with their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. FINTRAC collects reports on financial transactions from numerous entities and subjects them to rigorous analysis. When FINTRAC determines, on the basis of its analysis, that there are reasonable grounds to suspect its information would be relevant to investigating or prosecuting a money laundering or terrorist financing offence, it will disclose key identifying information to law enforcement. Likewise, when it suspects the information would be relevant to threats to the security of Canada, it will disclose the information to the Canadian Security Intelligence Service.

To learn more about FINTRAC and Canada's effort to combat money laundering and terrorist financing activities, visit our Web site: www.fintrac-canafe.gc.ca or call: 1-866-346-8722

To order a printed version of this publication, please send an email outlining your request to publications@fintrac-canafe.gc.ca. Include the following information in your email:

• Full name
• Organization name
• Complete street address (including postal code)
• Email address
• Business phone number
• Publication title
• Required quantities