Aggregator Approval Process: Timelines & Rules

The question in full

Aggregator approval process, is the single biggest bottleneck for scaling a money transfer business. While an aggregator may have a ready-to-go, API, your Sponsor Bank (the entity holding your license) views every new aggregator as a source of third-party risk. Before you can route a single dollar through an aggregator like Terrapay, Thunes, or dLocal, your Sponsor Bank must perform 'Deep Vetting' on their licensing, AML controls, and financial stability.

Answer

Yes, aggregators have to be approved. They would go through the same due diligence as a correspondent tie-up would and they too would need to sign a correspondent tie-up contract with the Principal License Holder. The approval times depend on the complexity of the tie-up and the organizational setup of the payout partner (banks are much slower than money transfer operators). Assume it would take 1-3 months.

Do aggregators have to be approved and if so, how long does that take?

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