MSB Compliance: What Businesses Must Know About Agents and Mandataries
With new FINTRAC regulations now in effect as of October 1, 2025, Money Services Businesses (MSBs) that work with agents or mandataries face clearer, stricter compliance obligations under Sections 9.9 to 9.93 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Who Qualifies as an Agent or Mandatary
Under the Act, an agent or mandatary is any person or entity that delivers money services on behalf of an MSB. This includes those providing services such as:
Importantly, sales representatives or referral partners that do not actually handle money services do not fall within this definition and are not considered agents or mandataries.
Who Qualifies as an Agent or Mandatary
Under the Act, an agent or mandatary is any person or entity that delivers money services on behalf of an MSB. This includes those providing services such as:
- Foreign exchange dealing
- Funds remittance or transmission
- Transportation of currency or monetary instruments
- Issuance or redemption of money orders or traveller’s cheques
- Dealing in virtual currency
Importantly, sales representatives or referral partners that do not actually handle money services do not fall within this definition and are not considered agents or mandataries.
What MSBs Must Do to Comply
MSBs are responsible for verifying and documenting the legitimacy of all agents or mandataries they work with. This includes:
Verifying Eligibility
-Confirm that each agent or mandatary is eligible to provide services on behalf of your MSB.
Criminal Background Checks
-Obtain a criminal record check for each individual agent.
-For corporate agents, conduct checks for the CEO or president, directors, and anyone owning or controlling 20% or more of the company.
-The check must confirm there are no convictions related to terrorism, corruption, money laundering, fraud, or drug trafficking under Canadian law.
Verification Timeline
-Before engagement of any agent or mandatary
-Every two years (within 30 days of the second anniversary)
-Retroactively for existing agents engaged before October 1, 2025 (consult a legal advisor for guidance)
Recordkeeping
-Maintain copies of all criminal checks and related documents for five years. Any records in a language other than English or French must be translated by a certified Canadian translator.
MSBs are responsible for verifying and documenting the legitimacy of all agents or mandataries they work with. This includes:
Verifying Eligibility
-Confirm that each agent or mandatary is eligible to provide services on behalf of your MSB.
Criminal Background Checks
-Obtain a criminal record check for each individual agent.
-For corporate agents, conduct checks for the CEO or president, directors, and anyone owning or controlling 20% or more of the company.
-The check must confirm there are no convictions related to terrorism, corruption, money laundering, fraud, or drug trafficking under Canadian law.
Verification Timeline
-Before engagement of any agent or mandatary
-Every two years (within 30 days of the second anniversary)
-Retroactively for existing agents engaged before October 1, 2025 (consult a legal advisor for guidance)
Recordkeeping
-Maintain copies of all criminal checks and related documents for five years. Any records in a language other than English or French must be translated by a certified Canadian translator.
Why This Matters
Failure to meet these verification and retention requirements could expose your MSB to serious compliance risks under both FINTRAC and Bank of Canada oversight. These updates are designed to strengthen anti-money laundering (AML) controls and ensure transparency across the Canadian financial ecosystem.
Stay Compliant with Confidence
To simplify compliance and protect your business from potential penalties, our firm offers a ready-to-implement MSB Agent/Mandatary Policy aligned with FINTRAC’s new standards.
Contact us today to purchase your compliant MSB Agent and Mandatary Policy and ensure your operations meet all requirements under the PCMLTFA.
Failure to meet these verification and retention requirements could expose your MSB to serious compliance risks under both FINTRAC and Bank of Canada oversight. These updates are designed to strengthen anti-money laundering (AML) controls and ensure transparency across the Canadian financial ecosystem.
Stay Compliant with Confidence
To simplify compliance and protect your business from potential penalties, our firm offers a ready-to-implement MSB Agent/Mandatary Policy aligned with FINTRAC’s new standards.
Contact us today to purchase your compliant MSB Agent and Mandatary Policy and ensure your operations meet all requirements under the PCMLTFA.
