Permissions

• Foreign Exchange Dealing

Conducting transactions where you exchange one type of currency for another

• Money Transferring

Transferring funds from one person or entity to another using an electronic funds transfer network or any other method

• Issuing or Redeeming Money Orders, Traveller’s Cheques or anything similar

Issues  or redeems money orders, travellers’ cheques or other similar negotiable instruments. This does not include cashing cheques made out to a particular person or entity.

• Dealing in Virtual Currency

This includes both virtual currency exchange and virtual currency transfer services.

Indemnity Insurance

A registered firm shall at all times maintain insurance policies in an amount appropriate to the complexity, size and nature of the securities business of the firm to cover at least professional indemnity.

Registration will not be granted should the Commission thinks that the coverage amount is insufficient.

However, this requirement does not apply to firms engaging exclusively in advising on securities.

Desfran shall seek to understand your business activities and goals to assist with your business plan drafting that best encompasses this whilst still being compliant with the prevailing regulations. Desfran shall also advise on the possible questions that might be posed by the regulator.

Filing and Reporting Requirements

• Canada MSB License (Money Services Business) holders are mandated under the Act to complete and file transactions and property reports.
• Should there be a reasonable amount of evidence to doubt the authenticity of a particular transaction, you have to submit a Suspicious Transaction Report as soon as possible.
• Otherwise, for big sums amounting to $10,000 CAD or more internationally, a report must be submitted within 5 business days.
• All Canada MSB license (MSB) holders will have to maintain and safe keep records of suspicious transactions, large cash transactions, transactions of $3,000 or more, foreign currency exchange, ongoing service agreements.
• These records should be available for inspection by FINTREC within 30 days upon request.

Due Diligence is necessary to formally verify the identity of all clients of the firm. The following documents are required to conduct due diligence for the license application:

• A copy of the photo page of the passport ceritifed by a notary public for each director and shareholder;
• A copy of proof of address (issued within the last 3 months) by a notary public for each director and shareholder;
• Curriculum Vitae (CV);
• Business Plan;
• Financial Forecast;
• Organisation Chart;
• For company directorship or shareholdership, a certified copy of the constitution documents of the company and above details on each director and shareholder of the company;
• Other supporting documents when necessary.

Please note for a company listed on a major stock exchange or subject to regulatory supervision in a country with equivalent AML regulations to Canada, evidence of such listing or regulation will suffice in place of the above information. Where the directors to be appointed are employees of such a listed or regulated company, a certified passport copy and confirmation of employment (to include position) will suffice.

Licensed Registration

• Company manuals for internal and external procedures
• Compliance procedures
• Fit and Proper test details
• Company Business Plan
• Securities Private Placement offering or prospectus

Bank Account Opening

• Certificate of Incorporation
• Articles of Memorandum and Association
• Certificate of Good Standing (If Company is older than 1 year)
• Resolution of Directors and Officers
• Copy of Share Certificates
• Other required supporting documents from the bank

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit (FIU). The Centre assists in the detection, prevention and deterrence of money laundering and the financing of terrorist activities. FINTRAC’s financial intelligence and compliance functions are a unique contribution to the safety of Canadians and the protection of the integrity of Canada’s financial system.

FINTRAC acts at arm’s length and is independent from the police services, law enforcement agencies and other entities to which it is authorized to disclose financial intelligence. It reports to the Minister of Finance, who is in turn accountable to Parliament for the activities of the Centre.