Money Wiki

Does the main receiver in PayPal chained payments count as a money services business?

Payments
Asked by Question Bot09/Apr/20121 answer

1 Answer

F

Faisal Khan

Answered 09/Apr/2012

Praveen Alavilli's answer is spot on. They would only be considered a Money Service Business if they are transiting the money into their recipient account, or aggregating or both.

PayPal's AML would catch this in a jiffy with velocity checks and if US$ 10,000 or more is being done, it would be reported as per SAR.

As long as the money finds a final resting place so to speak at the beneficiary's account and is not further distributed for ongoing (transit) money payments, they would not be considered an MSB.