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Money Transfer Agent

A money transfer agent is a person or business that is authorized by a money transfer operator (MTO) to facilitate the transfer of money on behalf of the MTO. Money transfer agents may be independent contractors or employees of the MTO, and they typically work at retail locations such as convenience stores or supermarkets.

Money transfer agents are responsible for assisting customers in initiating money transfers and may be involved in verifying the identity of the sender and recipient, as well as processing the necessary paperwork and entering the information into the MTO’s computer system. They may also be responsible for handling cash transactions and providing customer service.

The legal definition of a money transfer agent can vary depending on the jurisdiction in which the agent operates. In general, however, a money transfer agent is a person or business that is authorized by an MTO to facilitate the transfer of money on behalf of the MTO. This typically includes any person or business that is involved in the process of initiating, processing, and completing money transfers for an MTO.

Money transfer agents are regulated by financial authorities in the countries or regions where they operate, similar to MTOs. This is often done to ensure compliance with laws related to money laundering and the financing of terrorism. In the United States, for example, money transfer agents are regulated by the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. FinCEN requires money transfer agents to register with the agency and to implement certain anti-money laundering controls and procedures.

In summary, a money transfer agent is a person or business that is authorized by a money transfer operator (MTO) to facilitate the transfer of money on behalf of the MTO. These agents may work at retail locations such as convenience stores or supermarkets and are responsible for assisting customers in initiating money transfers and handling cash transactions. Money transfer agents are regulated by financial authorities to ensure compliance with laws related to money laundering and the financing of terrorism.

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This page was last updated on January 4, 2023.