FINTRAC MSB Address Rules: Is a Virtual Office Still Enough?

For many MSB owners, the address listed on their FINTRAC registration may seem like a small administrative detail. It isn't.

FINTRAC continues to pay close attention to whether Canadian money services businesses (MSBs) have a genuine physical presence in Canada and, importantly, whether the address they provide reflects a location connected to the actual business and/or compliance operations of the business.

If your MSB relies on a virtual office, a shared space or another third-party address arrangement, this is an area worth reviewing now.

A Canadian Address Alone May Not Be Enough

To operate as a Canadian MSB, a business must have a place of business in Canada. FINTRAC has updated its criteria and now requires each MSB to have an actual physical location in Canada.

What matters, however, is not simply having an address to put on an application. For years, many MSBs have used virtual or shared-space offices for their Canadian presence. This will no longer work.

FINTRAC now requires the address provided in the application to be either:

• the actual location of the MSB's business operations; or
• as an exception, the location of the MSB's lawyer or consultant that provides the MSB with compliance and business support services.

This is why some common address arrangements will no longer work.

The Question Every MSB Owner Should Be Asking

An MSB should be able to demonstrate that its Canadian address is the location where:

• its compliance and corporate records are maintained, or its compliance functions are carried out or administered; and
• relevant records can be accessed and made available to FINTRAC if required.

This is important not only for new applicants. Existing MSBs should review their current arrangements as well, particularly if the business has moved, become fully remote, changed service providers or has been using the same virtual or shared address for several years. It is also a common point of confusion we cover in our article on MSB registration myths.

An Alternative for MSBs Without a Physical Business Presence in Canada

MSBs that do not maintain their own physical office in Canada may be able to use the physical office of a lawyer, where that lawyer provides the business with corporate and compliance services and maintains the relevant records at that location.

Approved MSB Services, a proud affiliate of CBES Group, offers this service to qualifying clients through our physical office in Richmond Hill, Ontario, where client compliance and corporate documents are maintained and can be made available to FINTRAC if required.

Don't Wait Until FINTRAC Asks

If your MSB currently uses a virtual office, a shared address or another third-party location, now is a good time to confirm that your arrangement meets FINTRAC's current expectations.

If you are unsure about your current address or would like to discuss the options available to your business, contact our team. We'd be happy to help.