Entering New Markets as a Money Service Business
Many Remittance and FX companies are looking towards international growth. However, there are complex country/region-specific regulatory and banking considerations that come with entering new markets. This is where Fin-Serv can help, by:
- connecting businesses to banks
- negotiating terms sheets
- Structuring end-to-end flows, ensuring compliance with local laws
- Managing the mutual due diligence process
- Providing guidance on local AML/KYC matters
- Providing guidance on acceptance policies.
Expanding to the US Market without Money Transmission Licensing
One of the more difficult markets to enter is the US that requires a Money Service Business to obtain 47+1 Money Transmission licenses. However, Fin-Serv can help implement a more creative alternative – partnering with a bank, who performs the regulated functions of contracting with clients and holding client funds. We call this latter model a “bank service provider” model because the platform is a service provider to the bank. This is a cost-effective method to enter the US Market while adhering to local regulations and laws.
RELATED PROJECTS
- Developing compliant bank partnerships for regulated European FX and Payments providers with US financial institutions
- Developing relationships with Financial Institutions on behalf of platforms that leverage the FI’s license, obviating the need for the platforms to be regulated while maintaining the “experience”
