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MSB registration in the USA and Canada
Registration as an MSB in the US or Canada is the responsibility of a person who plans to engage in activities related to money services in such country.
Before registering as an MSB in the US or Canada, it is necessary to understand who they are and what they do.
Thus, in the US, the activities of MSB companies are regulated by FinCEN, and in Canada by FINTRAC, while the list of services provided by such companies in these countries is similar, but has differences.
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USA or CANADA for MSB?
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In the US and Canada, it is enough to provide only one of the above services to be recognized as an MSB company |
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Lawyers at Law&Trust International can assist you in registering your company as an MSB both in the USA and in Canada.
Who requires registering as an MSB?
MSB represents a fairly wide range of services. If my business is only indirectly involved with one of these services, is it necessary to go through the entire process of registering as an MSB?
In the US and Canada, banks are excluded from the definition of MSB.
At the same time, in the US, persons registered and regulated by the Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC) are also excluded from this definition.
In Canada, besides the standard MSB, there is a foreign version of it (the FMSB). Its difference from the basic version of MSB is that such organization has its place of residence outside of Canada, although it also directs its services towards Canadian persons. In this case, it is necessary to register as an FMSB.
What is the point of MSB registration?
Why do I need it if I can do everything without it?
Failure to comply with the obligation to register a company as an MSB is a violation and is punishable both in the United States and in Canada. This is classified as a violation of the law on money laundering and terrorist financing, thus, the punishment can be either an administrative fine or criminal prosecution, with all the ensuing consequences.
The Law&Trust International team kindly asks you to provide only correct information about your company both before and after registering an MSB (and while updating the status, when necessary), and to clarify with professional lawyers the need to register your company as an MSB.
Steps to register as an MSB
Registration as an MSB in the US and Canada is usually the first step to obtaining a financial (payment) license, which will be necessary for your company to conduct legal activities. This registration and future license will act as a guarantee of your reliability as a financial organization.
I have decided to register as an MSB. What do I need to do for this?
In order to properly register as an MSB, it is necessary to submit the required documents to the regulator. In the US it is the US “Financial Crimes Enforcement Network” (FinCEN), and in Canada it’s the “Financial Transactions and Reports Analysis Centre” of Canada (FINTRAC).
In the US, to register, it is necessary to properly complete FinCEN Form 107 within 180 days of registering the company.
In Canada, to register, it is necessary to first complete an online (web) pre-registration form, after which an authorized FINTRAC compliance officer will contact the organization’s representative and give the registration form for completion.
Regarding the terms, the authorities in the USA and Canada have the right to extend them at their own discretion for the purpose of obtaining any clarifications, so the registration period varies.
In any case, when registering, we recommend that you contact qualified lawyers who have experience interacting with the named government agencies and knowledge of local legislation, who will be able to do everything correctly and offer you options in which your risk will be minimized.
We hope that the process of registering an MSB will be simple for you, and to increase your chances, we recommend contacting Law&Trust International.
By contacting Law&Trust, you can be sure of our professionalism. We will make every effort to help you register your business as an MSB.
