Starting a Money Transfer Business in the Us

What You Need to Know Are you interested in starting a money transfer business in the US? Whether you’re looking to help friends and family send money overseas or build a larger cross-border money transfer service, there are some crucial legal and regulatory aspects you need to understand. Key Takeaways: Money transmission requires a license: If you act as a financial intermediary, facilitating money transfers between others, you are considered a money services business (MSB) and need a money transmitter license in each state you operate in. Federal registration is mandatory: You must register with the Financial Crimes Enforcement Network (FinCEN) at the federal level. Nationwide operations require 50 state licenses: Many MSBs obtain licenses in all 50 states to operate across the US. No statute of limitations: The government can prosecute unlicensed money transmission activities regardless of how long ago they occurred. Penalties for unlicensed operations are severe: These include fines, cease-and-desist orders, and even jail time. Failure to comply with regulations can lead to serious consequences: This includes disregarding anti-money laundering and terrorist financing laws, ignoring Office of Foreign Assets Control (OFAC) sanctions, and failing to conduct proper checks. Essential Steps for Starting a Legal Money Transfer Business: ...