Financial statement preparation services for Canadian MSBs
ComplyFactor provides financial statement preparation services for Canadian money services businesses (MSBs), payment service providers, remittance and foreign exchange companies, virtual currency businesses and fintechs. We turn your year-end records into complete financial statements, and support a formal compilation engagement where one is required.
Engagements typically cover review of year-end records, preparation of financial statements on an agreed basis of accounting, supporting schedules, and the GIFI figures your corporation's T2 filing needs. Scope is agreed in writing before work begins.
Financial statement preparation for MSBs, PSPs and fintechs
Most providers preparing year-end statements rarely see a money services business. An MSB, PSP or fintech prepares the same financial statements as any other Canadian corporation; there is no separate framework because the business is regulated. What differs is the data the statements are built from.
Revenue arrives as fees, spreads and commissions rather than invoices. Transaction volume runs through processors, platforms and settlement accounts in several currencies. Balances held for clients sit beside the corporation's own funds, agent networks create two-way commission flows, and virtual currency activity adds its own records. Generic preparation stalls on exactly this data.
Records we work with every day
What is financial statement preparation?
Financial statements preparation covers the work of turning a corporation's accounting records into a complete set of year-end statements. In practice that means reviewing the trial balance and supporting records, coordinating the year-end adjustments, and presenting the results — typically a balance sheet and an income statement with supporting schedules — on a clearly identified basis of accounting.
It sits between two neighbouring services. Bookkeeping records transactions through the year. A formal compilation engagement goes further than preparation: it is a defined professional engagement under Canadian standards that ends with a Compilation Engagement Report. Prepared statements without that engagement are management-prepared statements, suitable for internal use and many routine purposes.
Preparation on its own is not an audit or a review. For how compilation, review and audit compare, and which one an intended user is likely to ask for, see our guide to compilation vs review vs audit in Canada.
Financial statement preparation vs a compilation engagement
Who needs an AML audit in Canada?
Any business registered with FINTRAC as a reporting entity is required to have its AML compliance program independently reviewed for effectiveness at least once every two years. This includes:
Money Service Businesses (MSBs)
Currency exchange, remittance, and money transfer businesses.
Payment Service Providers (PSPs / RPAA)
Entities regulated under Canada's evolving payments framework.
Crypto / VASP Companies
Virtual asset service providers registered with FINTRAC.
Finance & Leasing Companies
NEW — April 2026.Finance and leasing firms are now subject to AML compliance obligations.
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.
