Money Services Business Regulation
Close gaps allowing underground banking to launder funds
📋 Intended Outcome
A provincial MSB regulatory regime closes the gap allowing unregistered informal value transfer operators and underground banking networks to launder funds.
🏛️ Provincial Action (BC)
BCFSA was granted an expanded mandate to regulate MSBs. A registration and compliance examination regime launched in 2024. Enforcement against unregistered MSBs has commenced.
🇨🇦 Federal Action Needed / Taken
FINTRAC alignment and data-sharing MOU signed. PCMLTFA remains the primary compliance framework; the provincial layer adds enforcement capacity for unregistered operators.
Analysis
The MSB regime is new and enforcement is in early stages. The Cullen Report identified MSBs and informal value transfer systems as critical vectors for the Vancouver Model. Full compliance examination capacity has not been reached.
⚠️ Risk / Outstanding Issues
Crypto-based MSBs (VASPs) are specifically excluded from the current provincial regime, pending further review — a gap the Report anticipated. Unregistered MSBs remain active.
⚖️ Important Disclaimer
This page is a public-interest summary. It is not a legal document and does not constitute legal, financial, or regulatory advice. Implementation statuses reflect publicly available information as of May 2026.