Obligations of an Operator of a Money-Services Businesses
The Money-Services Businesses Act (MSBA) requires any person or entity that operates a money-services business (MSB) for payment to obtain a licence for the following money services:
- currency exchange;
- funds transfer;
- the issue or redemption of traveller's cheques, money orders or bank drafts;
- cheque cashing;
- the operation of automated teller machines (ATMs).
Businesses subject to the MSBA have various obligations. They are required to disclose certain information regarding their directors, officers and partners, and certain lenders. They must also meet certain requirements with regard to keeping records and verifying customer identity. If they fail to meet their obligations or if they contravene any other provision of the MSBA, they may be fined or have their licence suspended or revoked.
Persons or entities that operate an MSB but whose activities are governed by certain other laws (such as banks, credit unions and insurers) are not subject to the requirements of the MSBA.