Canada's economic sector is widely regarded for its stability and resilience, with its financial system earning a reputation as one of the most reliable worldwide. The country's economic strength is underscored by its adherence to critical factors like property rights, technological advancement, innovation, fair taxation, low corruption levels, a well-regulated financial market, efficient bureaucracy, and strong investor protection. This comprehensive adherence to essential requirements has bolstered investor confidence and encouraged both domestic and foreign investments.

The government's pragmatic approach allows for relatively lenient requirements for companies seeking to provide financial services. This approach not only benefits Canadian citizens but also attracts foreign investors, fostering the growth and development of the financial industry. Canada definitely is an attractive destination for business opportunities and investment prospects.

MSB License:

Any business located in Canada which engages in foreign exchange, money transfer, virtual currency, and crowdfunding activities as its primary business or as a significant part of its operations, must register with FINTRAC and obtain the MSB license. This regulation aims to ensure that businesses in the financial sector adhere to anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. 

Obtaining the MSB License is vital as it ensures regulatory compliance, establishes business credibility, grants access to legitimate markets, and offers a competitive advantage.

A Money Services Business is subject to a set of requirements. 

• Registration: Before beginning to operate in Canada, you must register your MSB with FINTRAC. Even if you are registered as an MSB with a province or territory, you still have to register with FINTRAC. 
• Compliance: Money services businesses must implement a compliance program. A strong compliance program will form the basis of meeting all your regulatory requirements.
• KYC: Money services businesses must implement KYC checks and customer due diligence activities - MSB must carry out verification of identities of persons and entities for certain activities and transactions. 
• Reporting: Money services businesses must submit suspicious transactions reports, large cash, electronic funds and virtual currency transaction reports within 24 hours. 
• Record keeping: Money services businesses must keep certain records, including records related to transactions and client identification.
• Travel rule: The travel rule is the requirement to ensure that specific information is included with the information sent or received in a transfer. 
• Ministerial directives: MSB must comply with any directives issued by the Ministry of Finance of Canada.