FAQ: Banking

• As a fresh startup, what is the probability of being sponsored by a bank or an exchange company?
• Can I write “To be determined” or “To be negotiated” in the Term Sheet Consideration?
• Can a federally chartered bank open a branch in any state?
• Can a state-chartered bank operate in another state in which it is not licensed?
• Can offshore accounts be traced?
• 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)
• Do we need a correspondent tie-up agreement, if there is a licensed financial entity involved, like an exchange, or another Money Services Business?
• Does a Florida-licensed Money Transmitter need a correspondent tie-up agreement to receive funds in Florida and facilitate cash payroll disbursements in Venezuela?
• Does the Bank Account Verification also include ID verification?
• Have you successfully brokered MSB accounts in 2020, and are they now banked?
• How Much Money is Needed to Apply for a New Banking Charter?
• How are you able to keep up with the internal policy changes of the banks you work with?
• How does Correspondent Banking work?
• How long does it take to transfer the money to the bank?
• How much money do you need for a new banking license in the United States?
• I learnt the concept of FBO/ Omnibus account/ Pooled account, so considering our models, how can we charge our service fee (let’s say 2% of the transaction amount) on behalf of our merchants (since we cannot touch the fund)?
• If we are doing a balance check, do we also need to do a bank account verification? I think the balance check may be sufficient. Please advise.
• If we choose to settle into a US Bank Account (Nostro) via FedWire, what component of the transaction is settled here? Are the funds not being sent to the destination country bank?
• It’s mentioned that “the funds will be kept in the custodian accounts with the EMI, which has opened with particular banks”, how are we supposed to withdraw that fund to our bank account?
• We have already started to sign up clients for our B2C (Business to Consumer), for bank to bank transfers. Can you recommend other solution providers for this use case?
• We want to acquire an MSB Checking account, can you recommend a bank which understands how to partner with money transfer related businesses?
• What is Bank of International Settlements and how does it work?
• What is the difference between Reserve and Pre-funding under Balances & Reserves?
• What is the difference between a Community bank and a Credit Union?
• What is the difference between a Nostro account and a Vostro account?
• When would the work start once the contract is signed?
• Why don't some US banks offer international wire transfers?
• Will I be offered a bank account or sub ledgers by the bank to store the money before it is transferred?
• Will the bank account for my Bitcoin ATM business be able to accept deposits via armored carriers?
• Would a US Bank Account (Nostro) via Fedwire be held in a foreign country? Would that be classified as Nostro accounts?