Unlicensed Money Transfer! What to do next?

You are connecting with a service provider to obtain money transfer license coverage. Problem is, that in the past, you’ve operated as an unlicensed money transfer business (even on a small scale).

How does this affect you? Running an unlicensed money transfer business is a crime in many countries. So, how do you overcome it?


So, we record all our calls that happen on a conference call, skype calls, whatsapp calls, whatever, whatever you do. We record our calls.

So, when you get on the phone with us and tell us that you don’t have a money transfer license, you’re actually actually implicating yourself. Now, this may or may not matter to you, but it certainly matters to us, because, for example, if you look at the United States, the United States does not have a statute of limitations. That means if you did a money transfer without a license nine years ago, you know, if someone wants to make an example of you, they can. If a law enforcement officer wants to advance his career, they will go talk to a prosecuting attorney general and they will pursue the case and bring you into the loop of the law of it. You may say, well, you know, they might not do it for me, I’ve only done $10,000 worth or $6,000 worth. As I said if it’s someone who wants to make an example out of you, it will happen.

So what do you do in such a case? Well, first of all, I would never advise people to get on the phone and readily admit that they don’t have a license and that they did transactions. First of all, never admit that. Go seek legal counsel if that’s the case. But the most pragmatic way of talking to companies like ours and others and consultants and so forth is to always ask a hypothetical question. You know, hypothetically, what would happen if you didn’t have a license and you were doing this thing? Hypothetically, what would happen if you did transactions in the past and you did not have a license?

Even though you may be satisfied with a hypothetical answer, here is the scenario you need to understand going forward. Going forward, we will probably assign you a bank or a solution provider to work with, who would be willing to give you money transmitter as a license coverage or money transfer as a license coverage and so forth. And part of that question, which is a sworn affidavit, basically will ask you, have you ever done any unlicensed transactions or any unlicensed activity? And if you say no, you’re implicating yourself. If you say yes, you’re implicating yourself knowing that you have done it. So you have to be very careful. You’re actually in a predicament that is very difficult to handle and in most cases, what we do is we deny access to such clients. We basically say, you know, thank you, but no thank you, we can’t work with you.

If the case is big enough, Meaning if the transaction size are large enough, etc, we may go consult with our legal counsel and then try to see if this is something we need to bring into the, you know, to the attention of the law enforcement authority, because you’ve actually admitted the crime to us and it is a crime. Well, we cannot be held complacent in that, you know, in that admission. So we’d really need to go seek our legal counsel. So, you know, if chances are that, you’ve done money transfer illegally as a business, as a business without a license, then it is most likely that we will not be able to work with you, neither would the others because at some point in time, they will raise this question and you will have to answer it. And one of the repercussions of your lying on your, you know, your affidavit and so forth and going ahead with it is that at some point in the future, if they find out all your assets are frozen. mean, the deal’s off. As simple as that. They will report you. They will, you know, confiscate the money or commissions, etc., and then refer to their legal counsel and see how they can handle it.

So it’s a sad situation. But remember, unlicensed money transfer is a crime.

If you have any questions or comments, feel free to ask in the contact link below. Till next time, have a good one.

This page was last updated on September 1, 2022.

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