Common Misconceptions regarding MTL

MTL wouldn’t have prevented high-profile fraud anyway, so why bother?

While it may not stop every fraud, regulators use high-profile cases to justify more oversight. Being licensed also demonstrates proactive compliance—beneficial if you ever face a complaint or inquiry.

My employees sign an agreement that they understand we’re not responsible for their wages.

Contractual disclaimers do not override state law. If your business model falls within “receiving funds for transmission”, disclaimers won’t exempt you from MTL.

MTL is just a money grab by states.

States view it as consumer protection, especially in industries handling large sums. While fees can be high, the legislative intent is to ensure accountability and financial safeguards.

Joining an association guarantees I’m safe from enforcement

No, membership in itself isn’t a shield. However, it significantly improves your ability to stay informed, adapt quickly, and engage in collective lobbying efforts.

This page was last updated on February 19, 2025.