By PAUL O’DONOGHUE, Senior Correspondent
FINTRAC, Canada’s financial intelligence unit, has revoked the registrations of 23 money services businesses (MSBs), all linked to crypto services.
The agency said the action removes the firms’ legal ability to operate in Canada. It can revoke an MSB’s status if a firm fails to meet regulatory requirements.
Canada’s finance minister, François-Philippe Champagne, said the action reflects a broader push to address risks linked to digital assets.
“Our government will continue to monitor and pursue new measures to address risks posed by virtual currency businesses… which can be used to facilitate money laundering and fraud,” he said.
Potential issues for MSBs include not responding to information requests and updating business details. Firms may also lose registration if they have prior convictions for money laundering, terrorist financing, or other offences.
Two of the affected firms had no physical presence in Canada. Finax operates from Bratislava, Slovakia while Commerce Plex is based in Luton, England. Both also provide foreign exchange and money transfer services.
“Money laundering is a serious crime that threatens the integrity of Canada’s financial system,” Mr Champagne said.
He added that the government is increasing enforcement and transparency through FINTRAC.
“Today alone, there have been 23 revocations of money services businesses (MSBs) registrations, a requirement for these businesses to operate legally in Canada, as we continue to step up our focus on this issue,” Champagne said. “This represents a significantly increased pace of action, and our government will maintain this momentum.”
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