Introduction
Are you a domestic money services business (MSB) or a foreign money services business (FMSB) applying for a new FINTRAC registration, renewing/submitting a change request for an existing registration and there has been a change in director or owner information?
If the answer is yes and you are wondering about your obligations and requirements when submitting a criminal record check, read on.
The list of obligations for MSBs/FMSBs continues to grow!
As of June 1, 2021:
The requirement to submit a criminal record check during the registration process was first introduced, however, this requirement was limited to FMSBs only.
Criminal record check obligations were enhanced as of October 1st, 2025.
Here is what you need to know:
🟠 Both MSBs and FMSBs are now required to submit a criminal record check upon applying for a new FINTRAC registration.
🟠 MSBs are also now required to submit criminal record checks when renewing or submitting a change request for an existing registration AND there has been a change in director or ownership information.
🟠 FMSBs are required to submit criminal record checks when renewing or submitting a change request for existing registrations, even if there are no changes in director or ownership information.
🟠 The requirement for criminal record checks now also applies to agents or mandataries that are acting on behalf of an MSB/FMSB.
Why are criminal record checks required?
At a high level it’s simple: FINTRAC wants to ensure that individuals or entities controlling MSBs are not using these businesses as fronts for illegal activity, including activities related to money laundering and terrorist financing (ML/TF).
And to help meet international standards set by the FATF in 2025, Canada is taking a harder stance on ensuring MSBs and FMSBs are not run or controlled by criminal organizations.
You can think of criminal record checks as just another step in the vetting process of an MSB’s or FMSB’s regulatory compliance 🕵️
Who should be issuing Criminal Record Checks?
To date, we know many of our MSB/FMSB clients have had difficulty in processing their criminal record checks with FINTRAC, as FINTRAC is very strict about who issues the criminal record checks and how the documents are delivered to them.
Our MSB team routinely hears that entities are having difficulty processing their criminal record checks. With that in mind, we would like to provide the following tips:
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🟠 A criminal record check must be issued by a competent authority which is defined as “any person or organization that has the legally delegated or invested authority, capacity, or power to issue criminal record checks”. What this actually means is the criminal record check must be issued by a law enforcement agency or a person or entity that has the proper delegated or invested authority, capacity, or power to issue a criminal record check, through an agreement with a law enforcement agency or any other official documentation.
🟠 A screening company (like an employment or HR agency) that is acting as an intermediary on your behalf, by collecting and transferring the personal information to a competent authority for criminal record check purposes, provides an aggregated report. This report is not acceptable to FINTRAC as the screening company is NOT a competent authority. Only the official criminal record check issued by the competent authority must be provided to FINTRAC, without alteration. You can ask the screening company if they are willing to release the official criminal record check.
❌ Do not cut corners here - checks will not get approved if you do not follow the obligations to the rule, thereby delaying, or even cancelling, your registration application. Going directly to law enforcement to get checks done will save you time, vs. using screening companies - and in the world of MSBs/FMSBs, time is money! Every day you lose not operating, is a day of revenue out the window 💸
Criminal record checks must always be submitted in English or French
If the criminal record check is in a language other than English or French, it must be translated and attested to by a certified translator. A certified translator is an individual that holds the title of professional certified translator that is granted by a Canadian provincial or territorial association or body that is competent under Canadian provincial or territorial law to issue such certification OR by a foreign organization or body competent under the laws of that jurisdiction.
FINTRAC has published a non-exhaustive list of Canadian translation associations to assist MSBs and FMSBs in obtaining proper documentation (https://fintrac-canafe.canada.ca/msb-esm/msb-eng#s6).
You must also obtain the Statement of certification or proof that the translated document was issued from a competent and certified translator. This can be a certificate of authenticity signed by the certified translator and containing the translator's stamp or the translator's membership number.
The criminal record check, translation and certificate of authenticity should be scanned into a single document when submitting to FINTRAC.
When are criminal record checks required?
✅ For MSBs
A criminal record check is triggered as an obligation for MSBs when the entity is applying for a new registration or, when there has been a change to a director or individual who owns or controls 20% or more of the MSBs entity or its shares.
A criminal record check is not required for MSBs who are looking to update their registration or when submitting a registration renewal and there is NO change in director or ownership.
✅ For FMSBs
If you are an FMSB, you have more obligations, as your risk factors are higher. A criminal record check is ALWAYS required when applying for either a new FINTRAC registration or renewing an existing registration - regardless of if there is a change to the directors or ownership information.
✅ For MSBs/FMSBs that utilize Agents or Mandataries that are entities.
Criminal checks are required for those in any of the following roles or titles (or their equivalent):
🟠 Chief Executive Officer (CEO)
🟠 President
🟠 Directors
🟠 Any person that owns or controls, directly or indirectly, 20% or more of the entity or shares of the entity
💡Pro-tip: Look beyond the surface.
FINTRAC looks at “Control in Fact”. If your agents are a husband and wife that each own 10% shares in the company - the spousal connection triggers FINTRAC to view this situation as an individual with 20% control indirectly (due to acting in concert). Also - if your agent is a holding company, you must look up the chain to find the exact individuals that indirectly own the entity.
✅ For MSBs/FMSBs that utilize Agents or Mandataries that are Individuals.
Criminal Record Checks must be obtained for the individuals themselves.
What you need to know about agent or mandatary criminal checks.
🕒 Timing counts.
You must review your agent and its criminal record status every 2 years as part of your overall ongoing monitoring and Know Your Agent (KYA) obligations.
Agent or Mandatary criminal record checks need to be obtained and reviewed before the MSB engages with the party and within 30 days after the second anniversary of the most recent review of the agent or mandatary (reviews occur every 2 years).
🗓️ Example: if on January 1, 2026 the most recent verification and review of the criminal record check was conducted and the agent or mandatary is verified to still act on behalf of the MSB or FMSB, the criminal record check review and verification is due by January 31, 2028, which is within 30 days of the second anniversary.
✏️ Don’t ignore the who, what and where.
Criminal record checks need to be issued by a competent authority of the country in which the individual resides OR by an entity or authority authorized to issue documents within that country.
💡 Pro-tip: Watch out for expired checks.
The Criminal Record Check conducted must be issued no more than 6-months before you use it.
For renewals, the check must be issued within 6-months from the day of your most current 2-year review.
For new applications, the check must be issued within 6-months of the day you send your application to FINTRAC.
👀 Conclusion - There will be more coming.
As with anything compliance related, requirements are ever-evolving - and in the world of MSBs, the evolution of the regulatory landscape is progressively swift.
This latest boost in requirements for criminal record checks reflects one of the many new steps that MSBs face today in their regulation.
And…you can expect regulation to continue expanding as FINTRAC increases their commitment to fight ML/TF as part of ongoing changes in this space as seen in:
📣 The passing of Bill C-12 (The Strong Borders Act)
🇨🇦 The approval of Bill C-15 (The Budget Implementation Act, No.1)
🌎 Increasing international pressures via FATF compliance standards.
At The AML Shop we have helped hundreds of MSBs navigate compliance and “as-they-happen” regulation changes - We would love to support your business with anything compliance related including:
🔶 Advisory and Program Development
🔶 MSB registrations and Renewals
🔶 Ongoing Advisory Support
🔶 AML Training
🔶 RPAA Services
🔶 And more!