To become licensed as a money transmitter or money transfer operator, you will usually need to apply to the financial regulatory agency in your state or the financial regulator in your country. The specific requirements for obtaining a license may vary depending on where you are located, but generally you will need to:
- Apply for your own license by submitting an application to the state financial regulatory agency and meeting the necessary requirements, such as providing detailed information about your business and undergoing a background check and fingerprinting.
- Become an authorized delegate or registered agent of an existing license holder, which allows you to offer money transmission services under the existing license.
- Be sponsored by an existing license holder, which involves entering into a partnership or agreement with the license holder to offer money transmission services under their license.
- Be white-labeled by an existing license holder, which involves using the license holder’s brand and infrastructure to offer money transmission services under their license.
- Receive an exemption, which is rare and typically only granted in specific circumstances, such as for nonprofit organizations.
The best option for you may depend on factors such as your short and long term goals, budget, resources, and understanding of the regulatory environment. It’s important to carefully consider these factors and consult with a legal or financial professional as needed to determine the best path forward for your business.
This page was last updated on January 2, 2023.