In the U.S., what regulations apply to businesses that handle, hold, and transfer customer money?
Payments
Asked by Question Bot01/Jan/20151 answer
1 Answer
F
Faisal Khan
Answered 01/Jan/2015
If you hold money and/or transfer money, you're essentially an e-money and a financial intermediary respectively.
You would be classified as a Money Services Business (MSB) and hence the States' money transmitter laws would be applicable to you. Each State has their own set of law, and you would need to register as an MSB with them and obtain the necessary Money Transmitter License.
You would also have to adhere to the BSA (Bank Secrecy Act) law/guidelines and federal guidelines with respect to CFPB (Consumer Finance Protection Bureau) guidelines, especially the Dodd-Frank Act.
You would also need to register with FinCEN (Financial Crimes Enforcement Network).
Each US state has a different name for its DFI/DFS (Department of Financial Institutions / Department for Financial Services / Banking & Finance Commission, Department of Banking, etc.) - inquire from them that you would like to apply for an Money Transmitter License and they will guide you.
You would be classified as a Money Services Business (MSB) and hence the States' money transmitter laws would be applicable to you. Each State has their own set of law, and you would need to register as an MSB with them and obtain the necessary Money Transmitter License.
You would also have to adhere to the BSA (Bank Secrecy Act) law/guidelines and federal guidelines with respect to CFPB (Consumer Finance Protection Bureau) guidelines, especially the Dodd-Frank Act.
You would also need to register with FinCEN (Financial Crimes Enforcement Network).
Each US state has a different name for its DFI/DFS (Department of Financial Institutions / Department for Financial Services / Banking & Finance Commission, Department of Banking, etc.) - inquire from them that you would like to apply for an Money Transmitter License and they will guide you.