Working Under Trust Money Transmitter License Guide

The question in full

Trust money transmitter license arrangements are limited because trusts operate under a charter, not a traditional money transmitter license. Some trust companies may offer restricted custody services, depending on state recognition and reciprocity agreements, but coverage is not universal across the US.

Answer

Trusts have a charter, they do not have a money transmitter license. However, as a Trust company, they can offer “limited” custody services within their services realm. Also, understand that Trust Companies are recognized in certain states and are not recognized by others. This depends on where the original charter of the trust company is and you can ask (legally) if a reciprocity agreement between the trust company’s original state (from where the charter was issued) and the state in which it is doing business, as valid reciprocity and is recognized.

Can we work under a Trust’s Money Transmitter License?

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