A money services business (MSB) is a financial institution or company that provides financial services such as currency exchange, money orders, wire transfers, and check cashing. The term “MSB” is used by regulatory authorities to describe a financial institution or company that offers these types of services.
An MSB typically operates by facilitating financial transactions between customers, such as converting one currency to another or enabling a customer to send money to someone in another location. Some common examples of MSBs include foreign exchange bureaus, check cashing stores, and money transfer companies.
MSBs are regulated by financial authorities to ensure that they are operating legally and in compliance with laws designed to prevent money laundering and the financing of terrorism. In the United States, for example, MSBs are regulated by the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. FinCEN requires MSBs to register with the agency and to implement certain anti-money laundering controls and procedures.
In summary, a money services business is a financial institution or company that provides financial services such as currency exchange and money transfers. These businesses are regulated by financial authorities to ensure compliance with laws related to money laundering and terrorism financing.
Also See: What is a money services business?
This page was last updated on June 5, 2023.