The number of registered MSBs in Canada has increased from about 3,000 in 2024 to 6,000 in 2025. FINTRAC is receiving many completed MSB application forms daily for approval.
With the increase, license approvals are taking longer than expected. You may still be waiting to get a license to start operating your money service business. Let’s help you understand more about the delays.
How Long Did MSB Application Take In 2024?
Getting a FINTRAC MSB license in 2024 didn’t take long. Most applications were approved within two to three months of submission. Sometimes answers were also given within a month, depending on the quality of the MSB application.
Within one year, the timeline has changed for various reasons. You should expect more delays for MSB registration of your cheque cashing business or other venture in 2025.
How Long Does MSB Application Take In 2025?
You can expect to hear from FINTRAC within 5 to 6 months of submitting your MSB application in 2025. The federal agency may let you know whether your request has been approved or rejected.
Sometimes, after five months, you may receive a request for more documents from FINTRAC. After submitting those documents, it can take a few more weeks for approval.Â
You must consider other factors contributing to the delay to understand the expected timeline for starting your business operations.
Why Is My MSB Application Taking So Long: FINTRAC’s Internal Factors
Many internal reasons affect the time your MSB application will take for approval:
- Enhanced Due Diligence Requirements
In the last year, FINTRAC has increased its due diligence processes to tackle financial crimes more efficiently. The organization is also experiencing more pressure from international regulatory agencies.
Due to the increased pressure and security needs, FINTRAC is engaging in strong AML oversight for MSBs such as:
- Cheque cashing businesses
- Foreign MSBs
- Crypto-asset MSBs
- MSBs that offer remittance services
The enhanced due diligence process means FINTRAC will be taking its time to review applications thoroughly.
- Lack Of FINTRAC Resources
FINTRAC is a well-known regulatory organization that combats financial crimes in Canada. Despite that, the agency doesn’t have enough resources and manpower for fast MSB application approvals.
Factors such as budget restrictions affect the ability of FINTRAC to hire more review officers. With thousands of applications coming in every year, the limited workforce at FINTRAC can't review all of the applications in time.
- Multiple Reviews Of A Single MSB Application
MSB application review is not a one-step process, unlike what many business owners believe. A single application may have to be reviewed multiple times by different officers to ensure it complies with FINTRAC’s AML and KYC requirements.
The first check of the MSB application is done by FINTRAC’s digital system. If a form is vague or involves international shareholders, the application will be flagged.
All flagged applications have to undergo a manual review by an experienced FINTRAC officer. The check can take a few months, leading to approval delays.
- New Security Upgrades
On 2nd March 2024, FINTRAC suffered from a cyber-attack, due to which the organization had to halt its MSB application review processes. The agency prioritized upgrading its security systems to ensure they don’t suffer from hacking in the future.
It has been a year since the attack, but FINTRAC still has pending applications that were put on hold in 2024. The agency is clearing out the backlog efficiently, but it will still take time for things to become normal.
Until then, you can expect to face delays when applying for a FINTRAC MSB license in 2025.
- Quiet Change In Approval Timelines
FINTRAC has been facing scrutiny from international agencies such as the Financial Action Task Force. The agency wants the Canadian regulatory organization to be more thorough before granting MSB approval.
It may be possible that the rising scrutiny has caused FINTRAC to quietly change its approval timelines. What you’re seeing as a delay may be the new norm for the agency.
Why Is My MSB Application Taking So Long: External Factors
Besides FINTRAC’s internal reasons, other external factors also affect why your MSB application is taking so long:
- Poorly Drafted MSB Application
Many money service businesses aim to save money by completing the MSB application process themselves. They believe the funds they save can be used elsewhere, such as hiring a professional to open a bank account for their cheque cashing business.
Whatever the reason, most DIY MSB applications are poorly drafted due to a lack of legal and compliance knowledge. You may inadvertently use terms that can get your application flagged for a manual review. Overall, your MSB license approval will take longer than expected.
- Missing Documents For FINTRAC MSB License
Hiring an experienced Fintech legal and compliance firm is important for obtaining a FINTRAC MSB license easily. If you’re collaborating with a firm that does not specialize in service Fintech companies, your can expect the lack of expertise to delay your application timeline.
Firms that are not well-versed in drafting FINTRAC MSB applications may make errors such as:
- Failing to submit your compliance program document
- Not mentioning details of your employees in the MSB application
- Submitting incorrect or outdated business data
These mistakes will lead to delays in approval. Your application may also be rejected altogether.
- Weak AML Compliance Program
Having a few AML policies is not enough for FINTRAC registration approval. Your program must be:
- Well-detailed
- Having rules that adhere to the new FINTRAC rules
- Containing information about your compliance officer
- Including details of ongoing employee training programs
If your compliance program lacks in any aspect, FINTRAC may request more documents or reviews of your application. The unfortunate reality is that such requests will prevent you from getting a license and starting your operations on time.
How To Avoid MSB Application Delays?
FINTRAC registration delays can be avoided by taking a single step: hiring an experienced Fintech law firm such as Renno Co. & Fintech.Â
We have been handling MSB registrations for various companies since then. You can rely on our experts for:
- Completing your MSB registration form
- Submitting accurate and complete documents
- Developing a robust AML compliance program
- Getting your business banked after FINTRAC MSB license approval
- Supporting you with an outsourced Canadian compliance team
Our Fintech-focused lawyers and compliance professionals will support you until you receive your MSB license. The advantage with Renno Fintech? You’ll avoid unnecessary delays with our comprehensive application support.
Hiring An Expert Is The Key: Contact Renno Co. & Fintech Now For FINTRAC Registration
If you’re starting a business that cashes cheques for clients, transfers crypto assets, or offers payment services, you’ll require a MSB license. Renno Co. & Fintech can help you get a FINTRAC MSB license promptly. Contact us today to set up a meeting with our Fintech legal advisors.
