--- title: "Core Banking for Canadian MSBs | FINTRAC and RPAA Ready" description: "Back office for FINTRAC-registered MSBs: CAD and USD client ledger, data for EFT and STR reports, five-year records and RPAA safeguarding data." url: "https://crassula.io/solutions/core-banking/canada-msb/" lang: "en" image: "https://crassula.io/static/images/og/crassula-default.d7d01fb8a962.jpg" alternates: "en": "https://crassula.io/solutions/core-banking/canada-msb/" "de": "https://crassula.io/de/solutions/core-banking/canada-msb/" "es": "https://crassula.io/es/solutions/core-banking/canada-msb/" "fr": "https://crassula.io/fr/solutions/core-banking/canada-msb/" "x-default": "https://crassula.io/solutions/core-banking/canada-msb/" index: "https://crassula.io/llms.txt" --- Canada · MSB # Core banking for Canadian money services businesses Once your MSB keeps balances for clients, two regulators look at the same ledger. FINTRAC wants to trace every transfer back to a verified client, and since September 2025 the Bank of Canada wants to know what you owe each of them at the end of every day. [Request demo](https://crassula.io/request-demo/) [Core Banking →](https://crassula.io/solutions/core-banking/) Your market**Canada**MSB - CAD, USD and other currencies on one ledger - Transaction data for FINTRAC reports - End-of-day balance per client for the RPAA - Documentation for your Bank of Canada file Rails your customers can use **SWIFT****US ACH****SEPA****SEPA Instant****Transfers between your clients** What the regulator asks about your IT**9** Case Studies ## See what teams build with Crassula. ![LuxPay](https://crassula.io/static/images/solutions/cases/logo-luxpay.7d1fa138b9ba.png) - IBAN · SEPA - Card issuing - KYC onboarding Live on Crassula ### [A connected banking platform for modern financial services.](https://crassula.io/cases/luxpay/) Account details, SEPA payments, card issuing, KYC onboarding and multi-currency exchange in one financial product. [Read case study: LuxPay](https://crassula.io/cases/luxpay/) ![Paysend](https://crassula.io/static/images/solutions/cases/logo-paysend.1177d744fb9a.png) - SEPA Credit - SEPA Instant - SEPA Direct Debit Live on Crassula ### [SEPA connectivity for a global payments business.](https://crassula.io/cases/paysend/) A technical connector for SEPA Credit, SEPA Instant and SEPA Direct Debit, with back-office and ledger capabilities. [Read case study: Paysend](https://crassula.io/cases/paysend/) Core Banking · MSB ## What you can run as a FINTRAC-registered MSB ### Client balances in several currencies Wallet-style balances in CAD, USD, EUR and other currencies for each client, with current, reserved and available amounts kept apart on the ledger. ### Currency exchange for clients Spot conversion between a client's own balances, with the rate and your spread written to the transaction record. Spreads live in price lists, so changing them is a back-office task. ### Business client accounts Importers, exporters and other companies onboarded with directors and beneficial owners, several users per company, roles, batch payments and approval steps. ### One bank account, many client balances Client money sits in an omnibus or trust account at your bank, and the ledger splits it into named balances, so you always know whose money is whose. ### International payments Outgoing and incoming SWIFT payments, plus SEPA and US ACH through connected providers, each posted to the client's balance with sender and recipient details attached. ### Back office for compliance staff Client files, transaction history, limits and freezes in one dashboard, with an audit trail of who changed what. ### What this licence does not cover - Taking deposits. An MSB is not a deposit-taking institution, and client balances are not CDIC-insured deposits, so your terms and app must not present them as such. - Holding client funds on FINTRAC registration alone. If you keep balances or move money for end users, you will usually also need Bank of Canada registration under the Retail Payment Activities Act. - Serving clients in Quebec without a licence from the Autorité des marchés financiers, which the province requires on top of the federal registration. Your market ## What the regulator asks about your IT Each requirement, what the platform gives you for it and who owns it after launch. 1 Compliance programme: written policies, risk assessment, training, two-yearly effectiveness review Onboarding questionnaires by client type, client limits and per-client risk data that your policies and risk assessment can refer to. Your compliance officer 2 Verifying client identity and beneficial ownership Identity checks for individuals through connected verification providers, and company onboarding that records directors and owners. Your compliance officer 3 Electronic funds transfer reports for international EFTs of CAD 10,000 or more, including the 24-hour rule Timestamped transfer records per client that can be exported and grouped over 24 hours to find reportable transfers. You file with FINTRAC, on platform data 4 Large cash, large virtual currency and suspicious transaction reports Full transaction history per client as the input for your monitoring tool or a connected provider. The platform does not decide what is suspicious. Your compliance officer 5 Five-year record keeping Client records, transfer details with exchange rates and an audit trail of back-office actions, kept and retrievable for the full period. Shared 6 Travel rule information on transfers Originator and beneficiary name, address and account number stored on every transfer record. The messaging itself runs through your bank or payment provider. You, with your payment provider 7 RPAA safeguarding of end-user funds An end-of-day balance for every end user with name and contact details, exported to reconcile against your trust or segregated account. Your finance team, on platform data 8 RPAA risk management and incident response framework A description of the platform, its hosting and backups, our incident process and the providers behind it, for your third-party section. Your senior officer, with our input 9 Annual report to the Bank of Canada Activity figures, such as numbers of end users, transactions and values, pulled from reporting endpoints and exports. You, with platform data Canada ## Payment rails and providers Rails your customers can use SWIFT US ACH SEPA SEPA Instant Transfers between your clients **24/7**real-time processing, no batch window **60+**payment and provider integrations connected **150+**companies run on Crassula **15+**languages the platform speaks Canada ## Dates to plan around Rules that change what you have to build, in the order they apply. 1. **8 Sep 2025** Bank of Canada supervision under the RPAA began. Payment service providers must have their risk management and safeguarding frameworks in place. 2. **26 Mar 2026** FINTRAC's new administrative monetary penalties framework took effect, with higher maximum penalties plus compliance agreements and orders. 3. **Q4 2026** Payments Canada plans to launch the Real-Time Rail. Only Payments Canada members can apply to take part, and RPAA-registered PSPs are now eligible for membership. 4. **31 Mar 2027** Annual report to the Bank of Canada for calendar year 2026 is due, covering operational risk, incidents, safeguarding and activity figures. MSB ## Registering with FINTRAC and the Bank of Canada? Bring a working platform. Both regulators want to understand how money moves through your business. We give you a live platform and the technical write-up behind it, and your lawyers and compliance officer handle the registrations themselves. [Talk to us about your application](https://crassula.io/request-demo/) Crassula provides technology and documentation support. We do not provide legal or regulatory advice and cannot guarantee the outcome of an application. 1. 01 ### A platform you can demonstrate A configured environment to show the regulator, not slides. 2. 02 ### The technical part of your application, prepared System description, hosting, third-party and incident sections for your RPAA framework, and a map of the data behind your FINTRAC reports. 3. 03 ### Providers lined up Banking, safeguarding and KYC providers from our network, matched to your registration. ![A financial product team working together in a studio.](https://crassula.io/static/images/features/people/team-1200.97b7ec66c735.webp) Core Banking ## How a launch usually runs Take a currency exchange firm in Toronto that pays overseas suppliers for Canadian importers. It is already registered with FINTRAC, but clients now keep USD and CAD balances between payments, which puts the firm under the Retail Payment Activities Act as well. We set up the platform in the firm's brand and move client balances onto the ledger, one balance per client and currency. The compliance officer gets transaction exports in the shape the EFT reports need, and the finance team uses the end-of-day client balances to reconcile against the trust account at its bank. The same balances, together with the incident log, feed the annual report to the Bank of Canada. For the regulatory background, read our [guide to MSB registration in Canada](https://crassula.io/guides/licenses/msb-in-canada/) and the [RPAA registration guide](https://crassula.io/guides/licenses/rpaa-registration/). Guides ## Read the licence guides ![Canada MSB License in 2026: FINTRAC Registration Guide](https://crassula.io/static/images/guides/msb-in-canada/maple-leaf-preview-960.c4a48bc387c8.jpg) ### [Canada MSB License in 2026: FINTRAC Registration Guide](https://crassula.io/guides/licenses/msb-in-canada/) ![RPAA Registration in 2026: Bank of Canada Guide for Payment Service Providers](https://crassula.io/static/images/guides/rpaa-registration/toronto-tower-preview-960.05971d4bf063.jpg) ### [RPAA Registration in 2026: Bank of Canada Guide for Payment Service Providers](https://crassula.io/guides/licenses/rpaa-registration/) [**Explore all guides**Licensing, payments, cards and core banking, explained by our team.](https://crassula.io/guides/) Canada · MSB ## FAQ The questions teams ask us before a first call. [**Not covered here?**Bring your question to a demo with our team.](https://crassula.io/request-demo/) Is an MSB a licence? No. At federal level it is a registration with FINTRAC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, renewed every two years. Quebec is the exception: firms serving clients there also need a licence from the Autorité des marchés financiers. Do we also need to register with the Bank of Canada? Usually, if you keep client balances or move money for end users. Those are payment functions under the Retail Payment Activities Act, and since 8 September 2025 they need Bank of Canada registration on top of FINTRAC. Our [RPAA guide](https://crassula.io/guides/licenses/rpaa-registration/) covers the scope test. Does Crassula file our FINTRAC reports? No. Reports to FINTRAC are filed by your MSB. The platform keeps the transaction and client data those reports are built from and exports it, and your compliance officer, or a connected monitoring provider, decides what is reported. How does the ledger help with RPAA safeguarding? The Regulations ask for a record of each end user's name, contact details and the amount held for them at the end of every day. The ledger produces that list, and your finance team compares it with the trust or segregated account and logs any shortfall. Can Canadian clients hold USD and other currencies? Yes. Each client can have balances in several currencies on the same ledger, with conversions between them at the rates and spreads you set. The money itself stays at the bank where you hold your client accounts. Is there a minimum capital requirement? Federal rules set no minimum capital for FINTRAC registration or for RPAA registration. Banks and safeguarding providers may still ask for a funded balance sheet before they open client accounts. Canada · MSB ## What you can run as a FINTRAC-registered MSB Tell us your licence and country. We will map the rails, providers and documents you need. [Request demo](https://crassula.io/request-demo/) [**Know what you pay**One setup fee and a monthly plan with accounts and transactions included.*See pricing →*](https://crassula.io/prices/) [**Start with the API**Documented endpoints for accounts, payments, cards and customers.*Explore the API →*](https://crassula.io/features/api/)