MSB License Application

As global financial regulation becomes stricter, holding a legal license has become a prerequisite for companies to conduct money service businesses such as cross-border payments and digital currency transactions. The MSB (money service business) licenses in Canada and the United States have become the core choice for companies to deploy international financial markets due to their compliance, cost-effectiveness and market recognition. For example, the successful acquisition of the Canadian MSB license by the OAX platform marks a key step in its compliance process in the global financial technology field (Source: NetEase News).

Application requirements: compliance thresholds and core conditions

Canadian MSB license

Company qualifications: The company must be registered in Canada, providing a legal address, domestic bank account and company tax number (BN number).

Executives and compliance officers: At least two responsible persons (such as directors and compliance officers) must pass background checks, and the compliance officer must have professional experience in anti-money laundering (AML).

Business planning: Submit a detailed business plan covering service types (such as foreign exchange, fund transfers, cryptocurrency transactions, etc.), risk assessment and anti-money laundering policies.

Financial and compliance documents: Including shareholder identification, bank account information and compliance system documents (such as privacy policies, internal audit processes).

US MSB license

Company registration: A physical company must be established in the United States, and an EIN tax number and state registration documents must be provided.

Shareholder and executive background: Shareholders and key personnel must pass a background check by the US Treasury Department and have no criminal record.

Business scope statement: Clarify the type of service (such as prepaid card issuance, virtual currency trading), and formulate anti-money laundering (AML) and customer identification (KYC) procedures.

State-level compliance: Some states require additional capital or margin, such as New York's BitLicense, which requires stricter review.

Application process: key steps from preparation to approval

Canadian process

Material preparation:

Company registration documents, BN number, shareholder/director identity certificates;

Compliance officer appointment letter and AML policy documents;

Business plan and risk assessment report (must cover anti-money laundering, operational risks, etc.).

Submit application: Submit materials online through the FINTRAC official website, or entrust an agency to assist.

Review and feedback: FINTRAC will conduct an initial review of the completeness of the materials and may require additional documents (such as transaction flow, compliance training records).

Approval and maintenance: The license will be issued after the review is passed, and transaction reports must be submitted regularly and regulatory spot checks must be accepted.

US process

Company registration and tax number application: Complete state-level company registration and obtain an EIN tax number.

Business plan design: Clarify the scope of services and formulate compliance policies (such as KYC procedures and suspicious transaction reporting mechanisms).

FinCEN application: Fill in the MSB registration form and submit it to the US Financial Crimes Enforcement Agency (FinCEN) and wait for review (about 1-2 weeks).

Continuous compliance: After approval, BSA reports (currency transaction reports) must be submitted quarterly and annual audits must be passed.

Application fees: cost and cost-effectiveness analysis

Canadian MSB license

Basic fee: about 2,000-3,000 Canadian dollars (including department registration fees and compliance document preparation).

Additional costs: If you need the assistance of an agency, the service fee is about 5,000-8,000 Canadian dollars (including background check and material translation).

Advantages: No monthly fees, low maintenance costs, and the license covers the whole of Canada, suitable for long-term operation of medium and large platforms.

US MSB license

Basic fees: Federal application fee is about US$500, and state registration fees vary from state to state (such as about US$5,000 in New York).

Compliance costs: Anti-money laundering system development and annual audit fees are about US$10,000-30,000.

Advantages: Federal licenses are valid throughout the United States, but you need to pay attention to state-level regulatory differences (such as California requires higher capital).

Why choose NEO?

Full-process agency support:

Provide one-stop services for Canadian and US MSB licenses, covering company registration, compliance document preparation, background checks and department communication.

Based on the latest policy adjustment plan, ensure that the materials meet the requirements of FINTRAC and FinCEN.

Efficient case experience:

For example, in the case of OAX platform, NEO's "Compliance Document Template Library" and "Risk Assessment Tool" shortened the material preparation time by 40%, and the audit pass rate exceeded 90%.

Cost optimization plan:

Through centralized procurement of compliance services (such as AML training and auditing), customers can save 15%-30% of costs.

Continuous compliance services:

Regularly update customer compliance policies, assist in responding to regulatory spot checks, and reduce operational risks.

The MSB license is not only a "pass" for legal operations of enterprises, but also a symbol of market trust and competitiveness. Whether it is the high cost-effectiveness of the Canadian license or the full access advantage of the US license, choosing a professional institution such as NEO can significantly improve application efficiency and compliance quality.