If you’re planning to expand into payments, remittances, or digital asset services, one of the fastest ways to enter the Canadian market is to buy an MSB license in Canada. A Money Services Business (MSB) license issued by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) allows you to legally operate in areas such as remittances, foreign exchange, money transfers, or virtual asset services.
Unlike starting from scratch, acquiring a licensed MSB company can help you go to market faster, gain credibility with banks and partners, and avoid lengthy regulatory waiting times. In this guide, we’ll explain how to buy an MSB license in Canada, what to check during due diligence, the real costs involved, and how platforms like 7BaaS simplify the entire process of buying and selling licensed financial entities.
What Is an MSB License in Canada?
An MSB (Money Services Business) license is a registration with FINTRAC, the Canadian regulator that supervises money service businesses. It covers activities such as:
- Currency exchange
- Funds transfer and remittance services
- Issuing or redeeming money orders, traveler’s cheques, or prepaid cards
- Virtual asset dealing (crypto-related activities)
Reference: FINTRAC – Registering as an MSB.
For fintech companies, payment startups, and even established financial institutions, an MSB license is essential for compliance and for building banking relationships in Canada.
Looking to Register Your MSB?
Why Buy an MSB License in Canada Instead of Registering New?
There are two main paths to enter the market: apply for a new MSB license or acquire an existing one.
Buying an existing MSB license in Canada offers advantages such as:
- Speed to market: Acquire a company that’s already licensed and compliant.
- Banking relationships: Some MSBs come with established bank accounts and payment processors.
- Regulatory credibility: Clean compliance history builds trust with partners.
- Lower uncertainty: Avoid regulator back-and-forth during application.
On the other hand, building your own license gives you full control but may take 3 – 12 months, with no guarantee of fast bank onboarding.
| Factor | Buy Existing MSB | Register New MSB |
|---|---|---|
| Speed to Market | Fast (often operational in 2 – 8 weeks) | Slow (3 – 12 months typical) |
| Banking | May include existing bank/processor relationships | Must open new accounts; onboarding uncertain |
| Regulatory Risk | Lower if history is clean; verify during due diligence | Lower legacy risk; regulator back-and-forth can be lengthy |
| Control & Customisation | Inherit existing policies/structure (can update post-acquisition) | Full control from day one |
| Upfront Cost | Purchase price + legal/compliance transfer fees | Application + build-out + waiting costs |
How to Buy an MSB License in Canada
Buying a licensed entity involves several steps. At 7BaaS Marketplace, buyers and sellers connect through a secure and compliant process.
1. Identify Verified Opportunities
- Search available MSB licenses in Canada.
- Review details such as permissions, banking setup, and history.
2. Conduct Due Diligence
Before committing, check:
- Regulatory compliance – any past fines or open issues with FINTRAC?
- Banking – does the MSB have active bank accounts?
- AML/Compliance program – policies, training, and reporting procedures.Financials – is the company generating revenue, or is it a “clean shell”?
| Area | What to Verify | Red Flags | Documents / Evidence |
|---|---|---|---|
| Regulatory Compliance | FINTRAC registration status; past exams, fines, or open actions | Unresolved findings, sanctions, inconsistent filings | FINTRAC registry extract, exam reports, correspondence |
| Banking & Payments | Active bank accounts, processors, permitted activities | De-risking notices, pending closures, frozen accounts | Bank letters, processor agreements, statements |
| AML/ATF Programme | Policies, KYC/KYB, screening, STR/LCTR processes, training | Outdated policies, weak screening, poor record-keeping | AML manual, training logs, SAR/STR registers, audit results |
| Chief Compliance Officer | Qualified CCO in place; role clarity and independence | Vacant role, insufficient experience, conflicts | CCO CV, appointment letter, org chart |
| Financials | Trading history, revenue quality, “clean shell” vs active | Unexplained cash flows, legacy liabilities | Financial statements, AR/AP, tax filings |
| Licensing Scope | Permissions (FX, remittance, virtual assets, etc.) | Mismatch with intended business model | Registration scope, internal product matrix |
| Contracts & IP | Customer/partner contracts; software & data ownership | Non-assignable agreements, IP gaps | Contract list, assignment rights, IP register |
| Operational Readiness | Staffing, procedures, ticketing, incident logs | Single-point failures, no runbooks | SOPs, role descriptions, incident reports |
3. Legal & Compliance Support
Engage trusted partners to handle change of ownership filings, contracts, and compliance validation.
4. Finalize Transfer
- NDA → Due diligence → Agreement → Regulator notification → Ownership transfer.
- Transition period may take 2–8 weeks depending on setup.
Costs of Buying an MSB License in Canada
The real cost goes beyond just the purchase price.
Typical costs include:
- License/company purchase price (varies: €25k–€100k+ depending on setup).
- Compliance costs (Chief Compliance Officer, AML tools, reporting systems).
- Legal/advisory fees for due diligence and transfer.
- Ongoing operational costs (training, audits, bank compliance).
| Cost Category | One-Off vs Ongoing | Typical Range / Notes | What Impacts Cost |
|---|---|---|---|
| Purchase Price | One-off | €25k–€100k+ (clean shell vs active + banking) | Scope, banking, compliance history, revenue |
| Legal & Advisory | One-off | €5k–€40k | Deal complexity, warranties, multi-jurisdiction |
| Compliance Setup | One-off | €3k–€20k | Policy uplift, tooling, remediation |
| Chief Compliance Officer | Ongoing | €1.5k–€8k / month (in-house or vCCO) | Experience, scope, hours |
| AML/RegTech Tools | Ongoing | €300–€3,000 / month | Volumes, modules (KYC, screening, monitoring) |
| Audit & Training | Ongoing | €1k–€10k / year | Internal vs external, staff count |
| Banking/Processor Fees | Ongoing | Varies by provider & risk profile | Product mix, chargebacks, volumes |
For comparison, check our blog: The Real Price of an MSB License in Canada.
Selling Your MSB License in Canada
If you already own a licensed entity and want to exit, platforms like 7BaaS help you sell your MSB license quickly and securely. The process includes:
- Preparing compliance documentation.
- Setting up an information pack for potential buyers.
- NDA and data room setup.
- Buyer due diligence.
- Ownership transfer with regulator approval.
A clean compliance history and active banking relationships significantly increase valuation.
Alternative Licenses to Consider
Alongside MSB licenses in Canada, international buyers often explore:
- EMI (Electronic Money Institution) License – for issuing e-money and payment services (e.g., Malta, UK).
- PI/PSP (Payment Institution/Service Provider) License – for non-e-money payment services.
- VASP (Virtual Asset Service Provider) License – for crypto exchanges, custody, or transfer services.
FAQs
Typically 2 – 8 weeks for ownership transfer and regulator approval, depending on banking setup.
Yes. Non-resident ownership is possible, but you must meet FINTRAC compliance and local operational requirements.
Buying a clean MSB shell with no legacy issues is often faster and cheaper than new registration.
Yes, if registered with virtual asset permissions under FINTRAC.
Conclusion
If you want to expand into Canada’s fintech and payments ecosystem, the most efficient path is to buy an MSB license in Canada. With the right due diligence, compliance support, and trusted advisors, you can reduce risks, accelerate time-to-market, and start operations with confidence.
At 7BaaS Marketplace, we connect buyers, sellers, and brokers of licensed financial companies worldwide — ensuring secure, compliant, and seamless ownership transfers.
