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Worldwide Money Transfer License

Money services businesses (MSBs) provide financial services, such as money transfers, currency exchange, and check cashing. With operations spanning across borders, these businesses often face different regulations and licensing requirements in each country. This brings up the question: Is there a single worldwide license that allows an MSB to operate in all countries?

MSBs are financial services businesses that operate across borders. These businesses are typically subject to different regulations and licensing requirements in each country where they plan to operate. As a result, the question arises of whether or not there is a single worldwide license that allows an MSB to operate in all countries.

Why There is No Worldwide License for MSBs

Unfortunately, there is no such thing as a worldwide license for MSBs. Each country has its own specific requirements for licensing businesses that provide financial services. These requirements may include registration with the local regulator, adherence to certain standards and best practices, and compliance with Anti-Money Laundering (AML) laws. In addition, it is not permitted to engage in regulatory arbitrage, meaning that it is not possible to try and take advantage of regulatory differences between countries.

In order to obtain the necessary licenses, an MSB must comply with the laws and regulations of the jurisdictions where they plan to operate. This means that they must submit all of the required paperwork, such as registration forms and other documents related to compliance with AML laws. Additionally, they must adhere to best practices and standards that are set by the local regulator.

What Options are Available for MSBs?

Given the lack of a single worldwide license for MSBs, what options do these businesses have when it comes to operating across borders? The most common option is to obtain individual licenses in each jurisdiction where they plan to operate. This means that the MSB must go through the process of registering with the local regulator and submitting all of the necessary documents related to compliance with AML laws.

In some cases, it is also possible for an MSB to obtain a “passport” from one jurisdiction that will allow them to operate in other jurisdictions without obtaining additional licenses. This passport system is designed to make it easier for businesses to operate across borders without having to obtain separate licenses in each jurisdiction.

In conclusion, there is no single worldwide license that allows an MSB to operate in all countries. Each jurisdiction has different rules and regulations that must be followed in order for the business to be properly licensed and compliant. Businesses must obtain the necessary licenses in each jurisdiction where they plan to operate in order to ensure that their operations are legal and compliant with all applicable laws.

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This page was last updated on January 5, 2023.