Are you a foreign money services business? | Dentons

On July 10, 2019, amendments were made to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and regulations to clarify and strengthen the obligations of Foreign Money Services Businesses (FMSBs). The regulatory amendments require businesses that conduct money services business (MSB) activities directed towards Canadians from outside of Canada to classify themselves as FMSBs and comply with Canadian anti-money laundering requirements. Under the new amendments, which came into effect June 1, 2021, FMSBs will have the same obligations as ‎domestic MSBs when they provide one of the listed services directed at individuals located in Canada.

What is a money services business?

A business or enterprise is considered an MSB in Canada if they offer any of the following services:

  • Foreign exchange dealing
  • Remitting or transmitting funds
  • Issuing or redeeming money order or similar negotiable instruments
  • Dealing in virtual…

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