FAQ: Running a Business

  1. Does the solution provider only allow us to conduct business in the US (as we only seek to conduct business in the US based on domestic clients and domestic transfers)?
  2. If we go for the Operator Led Model, are we qualified if we request to be connected to MSBs in Asia & other regions?
  3. Can we, in due time, transfer to another license in the future (if one day we decide to obtain our own license in the USA)?
  4. Would we be sub-licensed under the Principle License Holder (PLH)?
  5. There is no crypto-license sponsorship option in the EU, am I right?
  6. When you said an office is needed, do you mean we have to incorporate first and rent an office, or just a virtual office (same as the license holder’s office) while there is likely no staff (of us) to work there?
  7. Does this service require us to pay monthly fees or we are required to market the app and bring customers on board or both?
  8. Can you please explain if there is a pricing difference (lower cost) between: 1) Option to BYOBB/BYOMTO (Bring-Your-Own Beneficiary Bank / Bring Your Own MTO) 2) Manage our own FX Handling (Optional)
  9. If we take care of market acquisition investments in marketing instead of operations and fraud costs, which will be written off as part of their embedded operational cost, we should not be charged for fraud, right?
  10. If we do not intend to establish a company in the US, due to the regulations, taxes, etc. Is it possible to continue to operate from Ecuador, with payment and correspondent agreements given that we comply with all regulations in Ecuador?
  11. Is it required to register our company with FinCen? Despite not touching the funds, we have no intention of opening an account in the US, our tax address is in Ecuador.
  12. From what we understand and know, there should be a person/company in the US who provides services on legal compliance issues. Do you include this service with the indicated monthly price?
  13. Does Faisal Khan LLC create custom AML policies?
  14. As a sponsored party which parties do we share our customers’ KYC information with, if any?
  15. How long does the FinCEN registration process take, and does your company assist with this?
  16. Is the sponsor also going to provide the bank account for the company?
  17. Do Trust Companies provide money transmitter license coverage?
  18. Our company is currently structured as a Delaware C-corporation. Will this present any issues? Is there a standard entity type a ‘sponsoree’ would be more likely to choose?
  19. How long does it take to find a sponsor, finalize a contract, and get up and running?
  20. Can we apply for a Lithuanian license if we are already incorporated in Ireland? That would be our preferred option given that we’ll need to staff operations in whatever country we do get our license.
  21. If I start on the smaller plan like Starter and then upgrade to Pro? How does that happen?
  22. Can I use an aggregator on the Starter plan and use the aggregator to payout to multiple countries (more than the allowed number)?
  23. RIA is competitively charging low fees, and the only way we could match up would be to find a payout partner with a good rate. Your solution is turnkey, which is good, but, we need visibility into the rate (assuming you will be assigning a payout partner to us) so that we could do some quick calculations before investing in your solution.
  24. Why is the flow of funds important and why must I make it? Why can’t you make the flow of funds based on our project’s understanding (as you comprehend it)?
  25. Do aggregators have to be approved and if so, how long does that take?
  26. Do you provide a settlement wallet/account?
  27. What bank will we be signing with? Can you tell us the name of the financial institution you are talking to? We might already be in conversation with them?
  28. Regarding the API we have a vendor that helps with Tech Support. We will work with the bank directly to develop our back end. Does the licensed financial institution provide an API?
  29. Is approval by a solution provider (i.e. licensed financial institution) guaranteed?
  30. What is the time frame to get approval from the solution provider?
  31. The $5,000 monthly fee is for whom?
  32. What is the original $25,000 fee for?
  33. What due diligence will need to be completed on our end?
  34. When is the referral fee due? Is it due once we are connected to a financial institution and an account has been opened with them?
  35. Does the armored car service need to have a contract with your bank?
  36. Are armored carriers allowed to pick up cash from Bitcoin ATM Operators and deposit it into their vault account and then transfer it over to our account?
  37. What is my company’s role defined in all of this? What role do I play as a non-licensed entity?
  38. How do I tell the payout partner in my beneficiary country to have a correspondent tie-up with the solution provider?
  39. Who will be in charge of ID verification process or KYC process? Will it be me or someone else?
  40. I will be happy to pay a bigger reserve or something like that if we can have the limits raised to 5K, as only WorldRemit and Western Union offer those limits and that is the kind of company I want to have in the future if everything goes well.
  41. How can there be fraud in the money transfer business? I don’t know about the business and want to know if it comes with some kind of chargeback or fraud protection for us.
  42. After we launch, can I increase the ACH limit to suit my client’s needs?
  43. Let’s say that I start the business, what would be my role in it? Will I be in charge of the back office?
  44. Do I have to hire staff for my money transfer business?
  45. Who is in charge of authorizing the transactions? Will it be me or someone else?
  46. If I have a starter package, how much do you think I need to have in my budget to have everything operative in the shortest amount of time? Please give me an estimate.
  47. Which service plan do you recommend for a startup company to start with? Is it possible to choose the Starter plan now and upgrade later?
  48. Who does the ID verification? Do I have to hire a third-party company for this, or is it included in the software?
  49. Is chargeback or fraud protection included in your services?
  50. In a correspondent tie-up, who sets the FX rate and who gains from it?
  51. Can we operate on a good funds & settled model?
  52. Are B2B (Business to Business) transactions allowed? Can we make use of intermediate MNO’s?
  53. Can we propose our own payout provider? How long does due diligence take and are there any extra costs associated? What is required of us and from the payout provider?
  54. Can we use our own platform and development stack if we have our own technology team, and not opt for your web/mobile app?
  55. Is it possible to move from the Starter package to Pro, and Enterprise as volumes grow and then only pay the incremental one-off fee?
  56. Can the daily transaction limits be increased by increasing the reserves? If yes, how long does this process take?
  57. Can I use my own payment processor?
  58. Which payout countries are available currently?
  59. Can we propose our own payout provider?
  60. Can we use PayPal, Square Cash, Venmo, Zelle, etc. to collect money?
  61. Would a US Bank Account (Nostro) via Fedwire be held in a foreign country? Would that be classified as Nostro accounts?
  62. Can we operate on a funds good & settled model? Please clarify steps of responsibility in the flow of funds.
  63. What happens under a RaaS program when you want to use a specific provider in the beneficiary country?
  64. Can my company be incorporated outside the United States, even though the RaaS we want is from the US?
  65. Is there a special type of company we need to form in order to be able to do Remittance-as-a-Service?
  66. How much does the Remittance-as-a-Service (RaaS) cost?
  67. Barring your referral fees, realistically what is the most minimum amount we can start a money transfer business with?
  68. How much money would I need to start a RaaS business?
  69. In Remittance-as-a-Service (RaaS), will I just need to give you our branding and be ready to launch?
  70. How many beneficiary countries can I have?
  71. What does the ‘introducer’ fees include?
  72. Who is responsible for anti-money laundering?
  73. How will I compete with others in the market?
  74. Why do the rates vary for the Starter package versus the Enterprise package?
  75. Is there a discount for startups?
  76. How long does Remittance as a Service take to be up and running?
  77. If we are a licensed money transfer company with extensive agreements with the payout countries, will the principal license holder agree to sign an agreement with us?
  78. Why is the limit of the starter package set to $5,000 per day?
  79. What is the procedure to use our own payout partner in the payout country?
  80. Can we be up and running in 15-days?
  81. Can I use my own merchant processor?
  82. How do I calculate my monthly costs?
  83. We want to expand untapped corridors where correspondence arrangements are needed and are not available. Would we be allowed to make a correspondence arrangement with Banks in that territory?
  84. Can we have a legal company name and then have a separate name (register a “doing business as”)? Is that allowed?
  85. Will the mobile/website app as provided by the solution provider require design and user experience?
  86. Do we have design control over the application?
  87. Will the mobile or web application developed need to be connected with the web services?
  88. What is the timeline before we can go live?
  89. Is it possible to go live within 6-8 weeks after the initial engagement?
  90. Do we need to hire a full-time compliance officer?
  91. What is a KYC and is there an API for it? Is it for the beneficiary?
  92. Would we receive proper installation/onboarding support for the API once we choose a solution provider?
  93. If I submit my marketing/sales plans to you, how much do you think I will be making monthly as the business owner?
  94. What is the timeline followed by your company after you accept a potential client?
  95. Will I need to allocate tech or software staff to integrate the APIs?
  96. What is the timeline to pay the referral fee?
  97. What is the consultation and facilitation fees offered by your company?
  98. With regards to me as the owner of the business, how many departments do I need to run this (remittance as a service business) successfully?
  99. Isn’t the idea of ‘renting’ a license considered wrong? Could it have legal ramifications if we rented a license?
  100. Would the financials be in line with the expectations we have set in the term sheet?
  101. Before we sign with your company, are there any reference projects we can see to help us make a decision?
  102. What are the next steps once I pay the referral fees?
  103. How much would the service provider charge for a money transmitter license?
  104. What is the best way to present our use-case to the partner?
  105. How do BIN Partnerships differ from what MSB will provide us?
  106. What happens if we decide not to move forward with the agreement?
  107. How long does the process of signing the contract last?

This page was last updated on March 2, 2023.

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