Corporate tax filing services for Canadian MSBs
ComplyFactor provides corporate tax filing services for Canadian money services businesses (MSBs), payment service providers, remittance and foreign exchange companies, virtual currency businesses and fintechs. The core of the service is preparation and electronic filing of the T2 Corporation Income Tax Return, the annual return every Canadian corporation files with the Canada Revenue Agency (CRA).
A typical engagement covers year-end tax preparation, the T2 and the CRA schedules that apply to your corporation, GIFI financial statement information, tax calculations and electronic filing, coordinated with your year-end financial statements where required. Scope is agreed in writing before work begins.
Corporate tax filing for MSBs, PSPs and fintech companies
Most corporate tax preparers rarely see a money services business. MSBs, PSPs and fintechs file the same T2 return as every other Canadian corporation; there is no separate tax regime for regulated financial businesses. What is different is the business model behind the numbers, and that is where generic corporate income tax services tend to struggle.
A remittance company can process thousands of multi-currency transactions a month while earning revenue only on fees and spreads. A foreign exchange dealer's margin sits inside its buy and sell rates rather than on an invoice. Payment processors hold client funds that are not revenue, agent networks generate commission flows, and virtual currency businesses hold assets whose treatment depends on how they are used. All of it must become accurate financial statement information before a T2 can be prepared properly.
Mandatory e-filing: for tax years beginning after 2023, most corporations must file the T2 electronically. The CRA can charge a $1,000 penalty when a corporation required to e-file instead files on paper.
ComplyFactor already knows your numbers
We work with regulated financial businesses every day on the FINTRAC side of their obligations. Our corporate tax filing support is built around the same business models:
T2 Corporation Income Tax Return preparation and filing
The T2 is the corporate income tax return filed with the CRA. All resident corporations must file one for every tax year, even when no tax is payable, with narrow exceptions such as registered charities — including inactive and loss-making corporations.
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Every resident corporation, every year
Certain non-resident corporations that carried on business in Canada also file. The T2 covers federal corporate tax and, for most provinces and territories, provincial corporate tax on the same return. Quebec (CO-17 with Revenu Québec) and Alberta (AT1 with Alberta TRA) are filed separately.
Financial statements, in CRA's language
Financial statement information is filed with the T2 using the General Index of Financial Information (GIFI) — in practice, Schedules 100, 125 and 141. Accurate GIFI reporting depends on clean year-end records, which is exactly where MSB and PSP data usually needs the most attention.
$1,000 penalty for a corporation required to e-file that instead files on paper — mandatory electronic filing applies to tax years beginning after 2023, with only limited exceptions such as insurance corporations and some non-resident corporations.
Corporate tax filing for regulated financial businesses
Being an MSB does not create special tax rules — it creates record-keeping and classification questions that must be answered correctly before the T2 can be prepared.
Remittance & money transfer
Fee and spread income calculated and recorded separately from the transaction volume passing through — not left implicit in cash movements.
Foreign exchange dealers
The margin inside buy and sell rates needs to be calculated and recorded as revenue in its own right, distinct from settlement balances.
Payment processors & agent networks
Client funds held in transit are not revenue; agent and network commissions need supporting statements and consistent year-to-year treatment.
Virtual currency businesses
Acquisitions, disposals and holdings need complete records with values determinable at each transaction date.
What we prepare for your T2 filing
Corporate tax preparation with ComplyFactor covers the corporation income tax return itself and the work needed to file it correctly. We do not promise refunds or tax savings, and we do not assume every corporation qualifies for every deduction — positions taken reflect your corporation's actual circumstances and records.
The T2 return
For your tax year, with the CRA schedules that apply to your corporation.
GIFI financial statements
Schedules 100, 125 and 141, coded and reconciled to your records.
Tax calculations
Federal and provincial tax, including small business deduction treatment where you qualify.
Structured review
Your year-end information reviewed, with questions raised and resolved before filing.
Electronic filing
Filed with the CRA, with confirmation for your records and your Notice of Assessment once issued.
Common AML audit failures in Canada (MSBs & PSPs)
Based on FINTRAC enforcement actions and our audit work with Canadian businesses, these are the most frequently identified compliance failures:
What our AML audit covers
Our independent AML audit is a full review of your compliance program — tested against FINTRAC's current examination standards. Every engagement covers:
Transaction Monitoring Review
We assess whether your monitoring system is calibrated correctly — including documented thresholds, escalation procedures, and evidence that alerts are being reviewed and actioned.
KYC & Enhanced Due Diligence (EDD) Testing
Risk-based sampling of your customer files — verifying identity verification, source of funds documentation, beneficial ownership records for corporate clients, and ongoing monitoring evidence.
Risk Assessment Validation
We review whether your risk assessment covers the right customer types, geographies, products, and delivery channels — and flag areas that would concern a FINTRAC examiner.
STR & LCTR Compliance Check
We verify that Suspicious Transaction Reports and Large Cash Transaction Reports have been filed correctly, on time, and with the required information.
AML Training Program Review
We confirm that your training is documented, role-specific, completed on schedule, and meets the standard FINTRAC expects during an examination.
If your business falls into any of these categories, a biennial AML audit is mandatory.
Our 4-step AML audit process
Every ComplyFactor AML audit follows the same structured methodology — designed to meet FINTRAC's effectiveness review requirements and deliver a written report your senior management can act on.
Scoping & Population Analysis
We map your full PCMLTFA obligations before any fieldwork begins — identifying your customer cohorts, transaction volumes, geographic exposures, and applicable reporting thresholds. A scoping call confirms scope and timeline.
Control Stress-Testing
We test your controls in practice — recalibrating transaction monitoring thresholds, validating sanctions screening logic, and reviewing your STR escalation process. We apply the same scrutiny a FINTRAC examiner would.
Evidence Sampling
We conduct risk-based sampling of KYC and EDD files — verifying identity verification, source of funds, beneficial ownership, and ongoing monitoring documentation against FINTRAC's current standards.
Remediation Roadmap & Written Report
You receive a full written audit report with all findings, a severity rating per deficiency, and a prioritised action plan with implementation timelines — satisfying the PCMLTFA written reporting requirement.
FINTRAC AML audit requirements in Canada (PCMLTFA & Bill C-12)
Canada's AML enforcement framework was significantly strengthened in 2026. Bill C-12 introduced the largest increase to FINTRAC penalties in the history of the PCMLTFA. FINTRAC's full enforcement phase is now active — the grace period that ran from April 2025 to April 2026 has ended. The cost of an independent AML audit is a fraction of a single FINTRAC penalty.
Cost of an AML audit in Canada
The cost of an independent AML audit depends on the size of your business, the complexity of your compliance program, and the scope of the review. Key factors include:
ComplyFactor provides transparent, scope-based pricing. We begin with a free 30-minute scoping call and provide a written quote within 48 hours — no retainer required for a standalone audit engagement.
Free quote. Book a free scoping call with our Canada team. Written quote within 48 hours.
+1 807 806 0444
Suite 211, 320 Matheson Blvd West, Mississauga, ON L5R 0H2
How to prepare for a FINTRAC audit
Whether you have received notice of a FINTRAC examination or want to be proactive, these steps will put your business in the strongest position:
Gather compliance documentation
Collect your AML policies, procedures, risk assessment, and training records. FINTRAC expects dated, current versions of all documents.
Review STR and LCTR filing history
Confirm all reports have been filed on time. Late or missing filings are a primary audit finding.
Test KYC files
Review a sample of 10 to 20 customer files. Confirm identity verification, source of funds, and ongoing monitoring documentation is complete.
Check transaction monitoring thresholds
Confirm your system flags the right transactions. Document the thresholds and the logic used.
Commission an independent AML audit
Find and fix gaps on your own terms — before FINTRAC does.
What you get — AML audit deliverables
Every ComplyFactor AML audit engagement includes the following — all within the agreed scope price, with no hidden fees:
Why Canadian businesses choose us for their AML audit
Canada-wide AML specialists
We work with regulated businesses across Canada — MSBs, PSPs, fintechs, and VASPs. Not banks. Not insurance companies. The businesses FINTRAC focuses on.
MSB & PSP focus
Unlike large accounting firms, we focus exclusively on the businesses most frequently targeted in FINTRAC enforcement actions.
Bill C-12 ready
Our audit methodology reflects the March 2026 legislative changes — assessed against the new penalty regime from day one.
Scope-based pricing
No retainer. No surprise fees. We agree scope and price before work begins and provide a written quote within 48 hours.
Remediation support
We do not just identify gaps. We provide a prioritised action plan and can support implementation — so your fixes hold up under the next FINTRAC examination.
Led by Saeed Abbasi, CAMS
Our audits are led by a CAMS-certified specialist with direct MLRO and FINTRAC examination experience across Canadian MSBs and PSPs.
Find and fix your gaps before FINTRAC does.
Frequently asked questions — AML audit Canada
Most independent AML effectiveness reviews for Canadian businesses are completed within 2 to 4 weeks, depending on the size of your business and the current state of your documentation. ComplyFactor will provide a specific timeline estimate during your free scoping call.
Yes. Under the PCMLTFA, all FINTRAC-registered reporting entities — including MSBs, PSPs, and VASPs — must have their AML program independently reviewed at least once every two years. The findings must be reported in writing to senior management.
FINTRAC may issue a compliance agreement, an administrative monetary penalty, or in serious cases pursue revocation of your MSB registration. Under Bill C-12 (2026), serious violations can now result in penalties of up to $4 million. Businesses that conduct regular independent audits and fix findings proactively are far less likely to face enforcement action.
ComplyFactor provides scope-based pricing following a free 30-minute scoping call. We deliver a written quote within 48 hours — no retainer required. Contact our team at +1 807 806 0444 to get started.
Yes. ComplyFactor conducts independent AML effectiveness reviews that satisfy the PCMLTFA biennial audit requirement. We are fully independent of your compliance function — as required by regulation — and our written report meets FINTRAC's reporting standards.
Book a free Canada AML consultation
Tell us about your business and we'll confirm which services you need — free, no obligation, 30 minutes.
