You are responsible for keeping certain records. These records must be kept in such a way that they can be provided to FINTRAC within thirty days if necessary. You can find more information in the custody of records for financial services companies. As the financial industry uses technology for compliance, it is also using it to improve customer service, improve comfort and expand access to its financial services. These new applications require new and updated rules. As finCEN adopts new rules, commercial money services banks need to review and refine their compliance programs to meet the latest requirements. All MSBs are required to develop and implement an Anti-Money Laundering (MRL) compliance program. The program should reasonably prevent individuals from using the MSB to facilitate money laundering or finance terrorist activities. Each program must be written and take into account the inherent risks, as well as other states are expected to join Georgia, Illinois, Kansas, Massachusetts, Tennessee, Texas and Washington if the pact accelerates. This pact is the first step towards an optimized MSB licensing process. Experts hope this is the beginning of a 50-state licensing program. Money service providers, financial intermediaries, payment service providers, currency changers and fintech companies will greatly benefit from this integrated approach.
On February 6, 2018, the U.S. Conference of State Bank Supervisors (CSBS) announced that seven states (Georgia, Illinois, Kansas, Massachusetts, Tennessee, Texas and Washington) have agreed to create a multi-state licensing solution for money services companies (MSBs). Fintech companies can officially celebrate and rely on public regulators listening to their concerns. Notwithstanding the previous discussions, the term “money services activity” is not included: under a new multinational licensing agreement, one State will accept the results of another State during the procedure for applying for a transfer of funds licence. When a company applies for its money transfer license, the state strives to ensure that it has its own business plan and control and that it complies with the requirements of the Bank Secrecy Act (BSA) and the Anti-Money Laundering (MRL). – Your company issues or resolves payment orders, traveller`s cheques or other similar business instruments. Before operating in Canada, you must register your financial services business (MSB) with FINTRAC. Even if you are registered as an MSB with a province or territory, you must still register with FINTRAC. For more information on all your MSB registration obligations, please see the registration of your financial services activity.
An MSB is usually anyone who offers a cheque; foreign exchange services; or sale of payment orders, traveller`s cheques or prepaid access products (formerly stored value); for an amount greater than USD 1,000 per person per day in one or more transactions….