Money transmission is a licensed industry. You simply cannot move money without being licensed. In this video, I will briefly tell you what sort of licensing options you have.
Hello. My name is Faisal Khan and I’m a banking and payment consultant. Continuing with our how to start a money transfer business YouTube series, the next question, the next topic I want to discuss is about licensing.
One of the first questions a lot of people ask who want to start a money transfer is ‘Is there a way I can do it without a license?’ The answer is no.
Money transfer in all the countries and territories of the world is a licensed phenomena. That means you have to have money transmission itself in general, requires a license. That means if there are five parties moving money from let’s say San Francisco to New York to London to, I don’t know, Hong Kong to Dubai. And that’s the Flow of funds, everyone needs to be licensed. There cannot be even for a split second even for a short one meter any sort of an insertion where no, where that party with that money flow is not licensed.
Money movement throughout the world has to happen through licensed entities. The question now is, Do you want to acquire your own license? Do you want to partner up with someone who could give you a license? Those are the two options that you have. You can either go get your own license or you can partner up with someone who already has a license. These are the basic tenets. There is no there is no third way. You have to work with a licensed partner or have your own licenses, but licensing is absolutely mandatory.
I hope I was able to explain the difference between the two. In the next video, we’ll discuss the two options, how can you partner up with someone and how can you get your own licenses. Till next time, thank you.