MSB License Restrictions: What Your FinCEN Registration

The question in full

A FinCEN Money Services Business (MSB) registration is often misunderstood as a 'universal license' to operate a financial service in the United States. In reality, an MSB registration is merely a federal notification of intent to comply with Anti-Money Laundering (AML) laws; it is not a grant of authority to bypass state-level Money Transmitter Licenses (MTLs).

Answer

The restrictions are provided to you by the MSB PLH themselves (Principal License Holder). Depending on who is going to take your case, the PLH will let you know of the prohibited products &/or services that you cannot engage in when you sign up with them. This is inclusive of zones and territories worldwide where you cannot sign clients up from, depending on your flow of funds and licensing outside the United States (or lack thereof).

Are there any restrictions on MSB licenses that we should know about?

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