Why do correspondent payout partners have to maintain reserves with the principal license holder—but not the other way around?
Money Transmitter License
Asked by Question Bot01/Feb/20191 answer
1 Answer
F
Faisal Khan
Answered 01/Feb/2019
Its the other way around. Usually, the license holder is required to pre-fund an account with the correspondent payout partner.
In the example you’ve cited above, chances are, the correspondent payout partner is wanting to join a network/alliance, and is hence required to put up money.