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Principal License Holder (PLH)

In the world of banking, finance, payments, and money services, a principal license holder is typically the person or entity that holds the primary license or authorization to conduct business in a particular jurisdiction. This may include the authority to provide financial services, such as banking, money transfer, and payment processing, to consumers and businesses.

In order to operate a money services business or money transfer service, it is often necessary to obtain a license or authorization from the relevant regulatory authorities. The principal license holder is typically responsible for ensuring that the business complies with all applicable laws and regulations, including those related to anti-money laundering and counter-terrorism financing. They may also be required to meet certain financial and operational standards in order to maintain their license.

In short, a principal license holder, as the name implies is the entity that holds the license in their name.

This page was last updated on January 5, 2023.