Can a U.S. bank operating in just one state provide money transfer services to residents of other states?
Banking
Asked by Question Bot04/May/20131 answer
1 Answer
F
Faisal Khan
Answered 04/May/2013
It depends.
Lets say (for example) the Bank is licensed as an MSB in Florida, and it would like to offer Money Transfer services in say Texas, two options are available to the bank to do this:
Lets say (for example) the Bank is licensed as an MSB in Florida, and it would like to offer Money Transfer services in say Texas, two options are available to the bank to do this:
- The Bank needs to have MSB license for Texas and can then open branches or assign points of presence for payments (Federal Reserve rules would also have to bee looked at here)
- The bank can partner on a wholesale level with a Financial Institution already in play in Texas and work (piggy-back) on their license and distribution network.