Have you already felt the impact of FINTRAC’s new policy?

Recently, the Canadian regulator has radically changed the rules of the game, moving into a phase of aggressive oversight of the MSB sector. Instead of soft supervision, we are witnessing a real “spring cleaning” of the registry: the regulator is initiating mass inspections, which are proving fatal for many.

Such waves of activity have been observed before, and as a result, companies have had their registration status revoked.

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What do the numbers say?

The latest statistics are discouraging: the ranks of “revoked” MSBs have already grown to about 50 companies. March was particularly notable: on March 6, 11 businesses lost their licenses, and by March 16, another 22 companies had been added to the list.

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Why does FINTRAC remove companies from the registry?

According to FINTRAC’s official guidance, this “verdict” is not arbitrary. Revoked status becomes the logical outcome if a company:

• fails to meet registration criteria
• ignores FINTRAC requests (in particular, for more than 30 days)
• does not provide required information
• fails to update its information (address, structure, etc.)
• does not cooperate during inspections or investigations
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The Verdict for Business
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The overall trend is clear: the regulator is moving toward a stricter oversight model for the MSB sector, which means businesses must maintain proper compliance and cooperation with the regulator. For any questions regarding MSB licenses and regulatory compliance, please contact the team of Lextensio professionals.

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