MSB registration — virtual currency dealing in Canada

About This Company

Section 156 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR, SOR/2002-184) defines the mandatory compliance substance required for Canadian money services businesses. Maintaining these operational requirements is non-negotiable for any purchaser following completion. Under PCMLTFR s. 156(1)(a), the business must appoint a designated compliance officer responsible for implementing and overseeing the AML/CTF compliance program. That officer requires direct access to senior management and the board of directors. Independence from transaction processing is expected. Written compliance policies and procedures approved by a senior officer must be kept up to date under s. 156(1)(b) to govern KYC, transaction monitoring, and reporting. Documented risk assessments under s. 156(1)(c) evaluate institutional risks across products, services, distribution channels, locations, and client classifications. A written, ongoing compliance training program and documented training plan must also be maintained for all staff and representatives under s. 156(1)(d). Governance personnel face rigorous scrutiny. Pursuant to PCMLTFA s. 11.11, FINTRAC assesses the criminal eligibility of the CEO, president, all directors, and anyone holding 20% or more ownership or control. Criminal record checks issued within the preceding 6 months are mandatory for all such individuals. Convictions for fraud, organized crime, or drug trafficking disqualify individuals from ownership or leadership.