British Columbia Proposes Revenue Solutions Enterprise Laws

On March 29, 2023, the British Columbia (“BC”) authorities introduced Monthly bill 19-2023:Dollars Companies Companies Act (the “BC MSB Act”) which will require funds services firms (“MSBs”) to sign up provincially in the Province of British Columbia with the BC Money Companies Authority (“BCFSA”), in addition to the prerequisite to sign up federally with the Economic Transactions and Reports Assessment Centre of Canada (FINTRAC) and in Quebec with Revenu Quebec. Developing a separate BC MSB registration regime was a person of the tips in the Cullen Fee report.

The MSB Act defines “money services” as (1) overseas exchange working, (2) remitting or transmitting resources, (3) issuing or redeeming traveller’s cheques and money orders, and (4) expert services approved by regulation. Insurance providers, discounts establishments, believe in companies, securities sellers, casinos and Crown companies will be exempt from the registration requirement.

The BCFSA will appoint a new Superintendent of Money Solutions Firms (the “Superintendent”). The Superintendent will be permitted to impose, range and clear away circumstances and limits on a registration, and will create and keep a publicly obtainable sign up of registered MSBs.

Registrants will be essential to deliver published recognize to the Superintendent of specific variations, including adjustments in administrators and changes in ownership, and will be demanded to report every year to the Superintendent on the registrant’s pursuits. In addition, registrants will be expected to manage records in accordance with the polices. Registrants will be prohibited from delivering fake or misleading data in their registration software or in reviews provided underneath the BC MSB Act.

The Superintendent will have powers to carry out investigations, utilize to the court for an purchase authorizing a look for or seizure, and issue orders, including orders to cease provision of cash expert services in BC. The Superintendent will also be ready to impose administrative penalties (AMPs) up to $100,000. In addition, individuals who dedicate an offence under the BC MSB Act can be liable to a fine of not a lot more than $200,000.

Polices and direction offering supplemental facts on the new regime, such as data on timing of registration and registration fees, will adhere to.

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