MSB License Cost in Canada: A Complete Guide

Introduction

Canada has become one of the most attractive destinations for financial technology and cryptocurrency businesses. Its transparent regulations and business-friendly environment allow companies to operate as Money Services Businesses (MSBs) under the supervision of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

For startups and enterprises looking to launch remittance services, crypto exchanges, digital wallets, or payment platforms, obtaining an MSB license is essential. One of the first questions new entrants ask is: What is the cost of getting an MSB license in Canada?

This article explores the real cost of an MSB license, breaking down direct and indirect expenses, and shows how 7 Baas supports businesses in navigating this process.

What Is an MSB License in Canada?

An MSB (Money Services Business) license is a registration that allows companies to legally provide services such as:

• Money transfers and remittances

• Currency exchange

• Issuing or redeeming money orders or traveler’s cheques

• Dealing in virtual currencies (cryptocurrency exchanges, wallets, trading platforms)

• Providing prepaid or stored-value products

All MSBs must register with FINTRAC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

Direct Cost of MSB License in Canada

The most surprising fact for many businesses is that the FINTRAC registration fee is $0. Unlike some countries where licenses cost thousands, Canada does not charge an official government fee to register an MSB.

Key points:

• No application fee for MSB registration.

• No annual renewal fee – but re-registration is required every two years.

• No minimum capital requirement by law.

Indirect Costs of MSB License

While the registration itself is free, building and maintaining compliance comes with real expenses. The indirect costs usually include:

1. Business Incorporation in Canada

To apply, you must have a Canadian legal entity. Incorporation costs typically range from CAD 500 to CAD 2,000 depending on whether you do it directly or through a corporate service provider.

2. Compliance Program Development

An MSB must establish a written Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) compliance program. This involves:

• Policies and procedures manual

• Appointment of a compliance officer

• Risk assessment framework

• Training program for staff

• Independent compliance audit plan

Professional drafting of a compliance program can cost between CAD 3,000 to CAD 10,000 depending on business complexity.

3. Legal & Consulting Support

Most companies hire consultants or legal professionals to handle registration and ensure everything is done correctly. Advisory services usually cost CAD 2,000 to CAD 7,000.

4. Technology & Monitoring Systems

MSBs are required to monitor transactions, detect suspicious activity, and file reports with FINTRAC. Implementing AML/KYC technology and compliance software can add CAD 5,000+ to startup costs.

5. Ongoing Compliance Costs

• Employee training: CAD 500–2,000 annually

• External audits: CAD 2,000–5,000 per audit

• Software subscriptions for KYC/AML checks

Total Estimated Cost

Here’s a simplified breakdown of what it typically costs to set up an MSB in Canada:

👉 Estimated Initial Setup Cost: CAD 10,000 – 25,000 (depending on business model and support required).

Why Compliance Matters

Even though the official license fee is free, non-compliance can cost far more than any setup investment. Companies that fail to meet FINTRAC requirements may face:

• Heavy fines (in some cases exceeding CAD 100,000)

• Business suspension or deregistration

• Criminal liability for money laundering violations

• Loss of reputation and banking relationships

This is why smart businesses treat compliance as an investment, not just a requirement.

How 7 Baas Helps with MSB Licensing

At 7 Baas, we specialize in guiding businesses through the Canadian MSB registration process and ensuring they remain compliant with evolving regulations. Our team provides:

• Step-by-step support with FINTRAC registration

• Development of a customized AML/CTF compliance program

• Assistance with corporate incorporation and documentation

• Advisory on technology tools for transaction monitoring and KYC

• Ongoing compliance support, audits, and training

Whether you are launching a crypto exchange, remittance company, or fintech startup, 7 Baas helps you save time, reduce risks, and operate confidently under Canadian law.

Conclusion

The cost of obtaining an MSB license in Canada is not about the registration fee—it’s about building the right compliance framework. While FINTRAC registration itself is free, businesses should expect to invest between CAD 10,000 to CAD 25,000 to cover incorporation, compliance programs, legal support, and monitoring systems.

For companies serious about entering the Canadian market, working with experts like 7 Baas ensures a smooth licensing process and long-term compliance success.