If you are setting up a money services business in Canada, two names come up before anything else: FINTRAC and the PCMLTFA. Founders often use them interchangeably, but they are not the same thing — one is the agency, the other is the law it enforces. Getting the relationship straight is the first step to understanding every obligation that follows: registration, a compliance program, and ongoing reporting. This guide explains what each one is, who they apply to, and what they actually require of an MSB.
What FINTRAC is
FINTRAC stands for the Financial Transactions and Reports Analysis Centre of Canada. It is Canada's financial intelligence unit, established in 2000 to detect, prevent and deter money laundering and terrorist financing. In French it is known as CANAFE.
FINTRAC does three things that matter to a money services business. It registers reporting entities and maintains the public MSB registry. It receives and analyses the reports those entities file, turning them into financial intelligence it shares with police and other agencies. And it supervises compliance — running examinations, requesting documents, and imposing administrative monetary penalties or revoking registrations when obligations are not met. It is, in short, both a regulator and an intelligence agency.
What the PCMLTFA is
The PCMLTFA is the Proceeds of Crime (Money Laundering) and Terrorist Financing Act— the federal law that creates the whole regime. It defines who is covered, what they must do, and what happens when they don't. The Act is backed by detailed regulations that spell out record-keeping, client identification and reporting in practical terms.
FINTRAC vs the PCMLTFA — the simple version
The PCMLTFA is the law; FINTRAC is the agency that administers and enforces it.The Act sets the obligations; FINTRAC registers you, takes your reports, examines you, and penalises you if you fall short. When people say "FINTRAC requires X," what they usually mean is that the PCMLTFA requires it and FINTRAC is the body that checks.
Who has to deal with FINTRAC
The PCMLTFA applies to defined categories of reporting entities — money services businesses, banks and credit unions, securities dealers, real estate brokers, accountants, casinos, and dealers in precious metals and stones, among others. Each has its own obligations, but MSBs sit squarely inside the regime.
A business is a Money Services Business (MSB) if it offers money services — foreign exchange dealing, money transferring, dealing in virtual currency, issuing or redeeming money orders, or crowdfunding platform services — and has a place of business in Canada. A business that directs those services at people in Canada from abroad is a Foreign MSB (FMSB) and must register too. We cover that distinction, and why a Canadian address has to be real, in our guide to physical office requirements for Canadian MSBs.
What FINTRAC requires of an MSB
For an MSB, the regime comes down to four ongoing obligations.
Registration
You must register with FINTRAC before you operate, and keep that registration current. Registration itself is free, and it is a registration — not a licence. Our MSB registration service walks through the application and the common reasons FINTRAC returns or refuses one.
A compliance program
Every MSB must have a written AML/ATF compliance program — a risk assessment, policies and procedures, ongoing training, and a designated compliance officer (CAMLO). FINTRAC can examine it at any time. See our guide to building one in AML compliance programs for MSBs.
Reporting
As a reporting entity you file suspicious transaction reports (STRs), large cash transaction reports (LCTRs), large virtual currency transaction reports, and electronic funds transfer reports where applicable. Suspicious transactions must be reported as soon as practicable once reasonable grounds exist.
Record-keeping and client identification
You must verify client identity using prescribed methods and keep the underlying records — transactions, identity, and business relationships — for at least five years, retrievable on request.
FINTRAC is not the CRA, OSFI or a securities regulator
FINTRAC handles AML/ATF only. It is not the Canada Revenue Agency (tax), not OSFI (prudential supervision of banks and insurers), and not a provincial securities commission. A crypto business, for example, can be an MSB under FINTRAC and face separate securities obligations — registration with FINTRAC does not settle those. Keeping the regulators straight avoids a common and expensive assumption that one registration covers everything.
Why this matters in 2026
FINTRAC's enforcement posture has hardened. Through 2026 it moved from occasional revocations to mass same-day actions against registrants that never built real operations, and Bill C-12 strengthened its powers and penalties. The practical takeaway: treat registration, your compliance program and your reporting as a live, ongoing obligation rather than a one-time formality. We break down the latest changes in our FINTRAC regulatory updates for 2026.
FINTRAC and PCMLTFA FAQ
What does FINTRAC stand for?
FINTRAC stands for the Financial Transactions and Reports Analysis Centre of Canada. It is Canada's financial intelligence unit, established in 2000 to detect, prevent and deter money laundering and terrorist financing.
What is the difference between FINTRAC and the PCMLTFA?
The PCMLTFA — the Proceeds of Crime (Money Laundering) and Terrorist Financing Act — is the law. FINTRAC is the agency that administers and enforces it. The Act sets the obligations; FINTRAC registers reporting entities, receives their reports, examines them and applies penalties.
Is FINTRAC a regulator?
Yes. FINTRAC is Canada's AML/ATF regulator and financial intelligence unit. It maintains the public MSB registry, runs compliance examinations, can impose administrative monetary penalties, and shares financial intelligence with law enforcement.
Do money services businesses have to report to FINTRAC?
Yes. A registered MSB is a reporting entity under the PCMLTFA. It must file suspicious transaction reports, large cash transaction reports, large virtual currency transaction reports and electronic funds transfer reports where applicable, and keep records for at least five years.
Is FINTRAC registration the same as a licence?
No. Canada does not issue an "MSB licence" — FINTRAC registers MSBs rather than licensing them. People use "FINTRAC licence" loosely, but the legal status is an active registration on FINTRAC's public registry, which is mandatory before operating.
The short version
FINTRAC is the agency; the PCMLTFA is the law. If your business offers money services with a place of business in Canada, you are an MSB, you register with FINTRAC, you run a compliance program, and you report — continuously. Everything else is detail built on that foundation.
Not sure where your business sits under FINTRAC?
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