Finding A Safe Currency Exchange Place in Toronto

In Canada, FINTRAC has many requirements that currency exchange providers must meet. Currency exchange providers are considered money service businesses, and therefore must comply with the regulations outlined by FINTRAC. So how can you tell if your prospective currency exchange provider is a safe place to do business with? Here are a few factors that could factor into your decision:

Do they ask for your identity (are they registered with FINTRAC)?

It’s imperative that you verify that a currency exchange provider is register with FINTRAC before transacting with the firm. FINTRAC works to limit criminal activity, such as money laundering, in Canada. You want to ensure the firm you’re transacting with is following their legally required duties, and is doing due diligence in the exchange process. A company who is following the federally mandated requirements is much more likely to be a safe firm to transact with.

If you are looking to exchange an amount in excess of $10,000, then you are required to provide your identification, amongst other things, before you conduct your transaction. If the firm you are looking to deal with does not ask for your identification, they are failing to meet the federal requirements of due diligence, which could lead to harbouring criminal activity. You don’t want to associate yourself with the facilitators of money laundering.

KnightsbridgeFx is registered with FINTRAC, under the MSB registration number M09819788.

Have they received positive media attention? Are they well reviewed?

Next, you’ll want to read reviews on the firm, as well as examine to see if they had received any positive news in the press. Positive reviews ensure that other people have safely used the service, which makes it more likely for your experience to be both safe and simple.

Additionally, unpaid endorsements from credible media outlets such as major local newspapers can help assuage any doubts you might have about using a currency exchange facilitator. Credible news outlets have worked tirelessly to develop a reputation that is respected by the community. They are unlikely to jeopardize that reputation through the promotion of a company involved in illegal activities.

Are they based in Canada?

Domestically located currency exchange providers work with local Canadian banks. This is beneficial for a number of reasons. First, they work directly with the banks, so they can ensure they provide you a rate that is superior to the bank rate. Secondly, they could have measures in place that allow you to work with your bank to exchange your currency.

For example, Knightsbridge Foreign Exchange is listed as an online bill payee at RBC, BMO, National Bank, Tangerine, Desjardins, and several other credit unions. This makes your currency exchange transaction as safe and easy as paying a bill online, like you would for a company like Rogers or Bell.

Are they registered with the Better Business Bureau?

Currency exchange providers that are registered with the Better Business Bureau (BBB) have a vested interest in providing quality customer service, and handle third party complaints well. These firms have more of an interest in protecting their reputation.

The Bottom Line

If you ensure to make the aforesaid inquiries to your prospective currency exchange provider, you can better assess how safe their services are.