Starting an X Border Service Need a Money Transfer License

Let Us Help You Get Started On Your Money Transfer License Quest! The bad News First… If you’re building a product/service that classifies you as a money transmitter, chances are you will be disappointed if not downright depressed when you find out the costs, effort and time associated in filing for and obtaining your own money transfer licenses. In many instances (taking US as an example)… Your paid up capital requirements (which varies from state to state) would need to be around US$ 500,000 minimum (US$ 1,000,000 preferred). You need a $150k just to file for the basic fees for all the license applications. You’d need access to banking (a difficult task these days), read the following articles: World Bank Survey Confirms: De-Risking a Huge Issue. Strangulation by Regulation. Can’t find MSB Friendly Banks? Go ahead, scream. No one is listening. Banking De-Risking: The Domino Effect Is Now In Full Force. You’d need surety bonding which can cost you a pretty penny. The premium is anywhere from 2% to 4% depending on the type of business you’re in. Some states may require $500,000 worth of surety bonding, some US$ 2 Million. It all adds up. This is premium payable every year. You’d need to go through audits, which cost a lot of money. Many different types of audits too! A full-time compliance officer in many cases Attorney/legal fees. Software/Systems fees, etc. FOR MOST STARTUPS, THIS IS A NO-GO. The costs associated with a money transfer license are high. Most startups do not have the budget nor the patience to hold back on their program, till they get the licenses. Even after you file all your applications at once, a few licenses will trickle in, in about 4-6 months time. Bulk of them take between 6-12 months. For states like New York, Texas and California, it can take over 18 months before you are granted a license. ...