B.C. Introduces Legislation To Regulate Money Services Businesses

On March 29, 2023, British Columbia introduced Bill 19, the Money Services Businesses Act (B.C. MSB Act), which proposes to regulate money services businesses (MSBs) operating in the province. The regulation of MSBs in B.C. was one of the recommendations of the Cullen Commission, which concluded that greater scrutiny of MSB activities was required, beyond that provided by the Financial Transactions and Reports Analysis Centre. There are some interesting provisions and unanswered questions that arise from the B.C. MSB Act.

OVERVIEW AND IMPACT

The B.C. MSB Act proposes that the British Columbia Financial Services Authority (BCFSA), the provincial regulator of financial institutions, be responsible for the regulation of MSBs operating in the province. BCFSA will appoint a Superintendent of Money Services Businesses (Superintendent) to supervise MSBs.