Hello a_altman:
Thanks for the interesting question. Actually, there are several new
federal regulations for running this type of business in Canada. These
new regulations have sprung out of the attempt to limit money
laundering and financing of terrorist activities.
"The Proceeds of Crime (Money Laundering) Act was amended in December,
2001 to become the Proceeds of Crime (Money Laundering) and Terrorist
Financing Act."
http://www.fintrac.gc.ca/act-loi/1_e.asp
The above URL is the starting page for this act. Some more specific
pages that might be of interest to you are:
Regulations:
http://www.fintrac.gc.ca/reg/1_e.asp
Guidelines:
http://www.fintrac.gc.ca/publications/guide/guide_e.asp
Guideline 6: Record Keeping and Client Identification for Money
Services Businesses:
http://www.fintrac.gc.ca/publications/guide/gl6/6C_e.asp
"A money services business means an individual or an entity that is in
the business of remitting or transmitting funds by any means or
through any individual, entity or electronic funds transfer network.
It also includes the business of issuing or redeeming money orders,
travellers’ cheques or other similar negotiable instruments. Money
services businesses include alternative money remittance systems, such
as Hawala, Hundi, Chitti, etc. Money services businesses also include
financial entities when they remit or transmit funds, issue or redeem
money orders, traveller’s cheques or other similar negotiable
instruments for anyone who is not an account holder."
Frequently Asked Questions:
http://www.fintrac.gc.ca/questions/1_e.asp
As far as whether you need a licence or not, that would likely depend
on which province you were planning on operating in and on what
specific services you are planning to offer (since the provinces
handle business licencing). To find this information, I would suggest
you search for the required provincial business licencing government
site and then contact them for details.
For example, for Ontario, I did the search:
"business licences" site:gov.on.ca
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=%22business+licences%22+site%3Agov.on.ca
which lead me quickly to:
Ministry of Consumer and Business Services
http://www.cbs.gov.on.ca/obc/english/4TG2A7.htm
I hope that this information has been of help to you.
If you need any clarification of the information I have provided,
please ask using the Clarification feature and provide me with
additional details as to what you are looking for. As well, please
allow me to provide you with clarification(s) *before* you rate this
answer.
Thank you.
websearcher-ga
Search Strategy:
"money transmitting" site:.ca
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=%22money+transmitting%22+site%3A.ca
Bill C-22
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=Bill+C-22
business transmit money canada licence
://www.google.com/search?q=business+transmit+money+canada+licence&hl=en&lr=&ie=UTF-8&safe=off&sa=n&oq=buiness+transmit+money+canada+licence
"money transmitting" canada licence OR licencing
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=%22money+transmitting%22+canada+licence+OR+licencing |
