SPI license in Canada
Canada
Canada does not use a fintech-invented label called an 'SPI license' — instead, entities operating a payment service business are brought under the Retail Payment Activities Act (RPAA) and must complete Payment Service Provider (PSP) registration with the Bank of…
| Jurisdiction | Canada |
| License type | SPI license |
| Regulator | Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) |
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Requirements
Before registering as a payment service provider, you need a Canadian corporate vehicle. The simplest and most commonly recommended structure is the Business Corporation (Inc./Ltd./Corp.), Canada's closest equivalent to an internationally recognized LLC/private limited company, incorporated federally through Corporations Canada (a branch of Innovation, Science and Economic Development Canada). Other legal forms exist (see the Basic company reference), including unlimited liability companies, partnerships and cooperatives, but these are generally not suited to a licensing business.
Key points confirmed from the registrar's guidance:
- Incorporation is filed through Corporations Canada's Online Filing Centre, covering the Articles of Incorporation, choice of a word name or a numbered name, initial registered office address, and first director information.
- A federally incorporated company must additionally register extra-provincially in each province or territory where it actually carries on business.
- Every federally incorporated company must create and maintain a register of individuals with significant control (ISC).
- Ongoing obligations include filing an annual return and notices of change to directors, registered office, or company name.
- For account opening, banks will apply identification requirements consistent with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Major Canadian banks include TD Bank, Scotiabank and CIBC.
Since 1 November 2024, the Retail Payment Activities Act (RPAA) has placed federal oversight of payment service providers — including digital-wallet and online-payment providers — under the Bank of Canada. Before beginning operations, a PSP must register with the Bank of Canada, which requires:
- Disclosure of the fees the PSP charges;
- A documented risk-mitigation structure; and
- A dispute-resolution procedure for customers.
Because many payment activities (in particular remitting or transmitting funds) also meet the statutory definition of an MSB service, PSPs operating in Canada frequently also need to consider registration as a Money Services Business (MSB) or Foreign MSB (FMSB) with FINTRAC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Under that regime, businesses must register with FINTRAC, report certain transactions, know their clients, and maintain a compliance program; MSB/FMSB registration must be renewed every 2 years. FINTRAC provides an online questionnaire to determine whether a business needs to register as an MSB, an FMSB, or not at all, followed by a Pre-registration request form for those that do.
Certain individuals and entities are barred from registering as an MSB or acting as an agent on behalf of one, including persons convicted of money laundering or terrorist financing offences, corporations or partnerships whose leadership or 20%+ owners are ineligible, and persons or groups listed under the Criminal Code or related UN-resolution regulations.
Get Your SPI License in Canada
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
Federal AML/CTF regulator responsible for mandatory registration of Money Services Businesses (MSB) and Foreign MSBs (FMSB) under the PCMLTFA; enforces compliance programs, transaction reporting (LCTR, STR, EFT), registration renewal every 2 years, records retention, and can revoke registrations or impose administrative monetary penalties for non-compliance; registration does not constitute a business license or endorsement. https://fintrac-canafe.canada.ca/msb-esm/msb-eng
Overview
Canada does not use a fintech-invented label called an 'SPI license' — instead, entities operating a payment service business are brought under the Retail Payment Activities Act (RPAA) and must complete Payment Service Provider (PSP) registration with the Bank of Canada (BOC) — the closest Canadian equivalent to what other jurisdictions call an SPI / payment institution license. This guide explains how PSP/RPAA registration fits together with company formation and, where relevant, the related Money Services Business (MSB) regime enforced by FINTRAC.
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Licensing Process
Step 1
Incorporate a Business Corporation (Inc./Ltd./Corp.) through Corporations Canada, including Articles of Incorporation, registered office, first directors, and the individuals-with-significant-control register.
Step 2
Register extra-provincially in each province or territory where the business will actually operate.
Step 3
Use FINTRAC's online questionnaire to determine whether the business must register as an MSB or FMSB, and if so, submit the Pre-registration request form to FINTRAC; once registered, build out the required compliance program, client-identification procedures, and reporting capability (registration must be renewed every 2 years).
Step 4
Register the payment service provider with the Bank of Canada under the RPAA, disclosing your fee structure, risk-mitigation approach, and customer dispute-resolution procedure before commencing operations.
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Costs
- Basic — EUR 7,500 — Entry-level package for Canada MSB registration, suited to straightforward cases and clients seeking the most cost-efficient route to FINTRAC registration.
- Standard — EUR 14,000 — Mid-tier package for Canada MSB registration, offering broader support than the Basic tier for clients with more involved requirements.
- Premium — EUR 29,000 — The most comprehensive package for Canada MSB registration, for clients seeking the highest level of support and attention available in this jurisdiction.
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Frequently Asked Questions
Is there a Canadian license actually called 'SPI'?
No. Canada regulates this activity through PSP registration with the Bank of Canada under the RPAA, which is the functional equivalent of what other jurisdictions call an SPI or payment institution license.
Which regulator handles PSP registration?
The Bank of Canada, under the Retail Payment Activities Act, in force since 1 November 2024.
Do I also need to register with FINTRAC?
If your payment activities include remitting or transmitting funds or other listed MSB services, you may also need to register as an MSB or FMSB with FINTRAC under the PCMLTFA, in addition to Bank of Canada RPAA registration.
What must be disclosed when registering with the Bank of Canada?
Registrants must disclose their fees, a risk-mitigation structure, and a dispute-resolution procedure before starting operations.
How often must an MSB/FMSB registration be renewed?
FINTRAC MSB/FMSB registration must be renewed every 2 years.
What legal form should I use to set up the company?
A Business Corporation (Inc./Ltd./Corp.) incorporated through Corporations Canada is the recommended default structure, closest to an internationally recognized LLC.
Can a foreign company without a physical presence in Canada be caught by these rules?
Yes — a business without a place of business in Canada that directs services at persons in Canada (e.g., via a .ca domain, Canada-directed marketing, or serving clients with Canadian addresses/ID/banking) can be treated as a Foreign MSB (FMSB) and required to register with FINTRAC.
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