US Money Service Business Registration

About US

The Financial Crimes Enforcement Network (FinCEN), a branch of the U.S. The Department of the Treasury is in charge of enforcing anti-money laundering (AML) legislation on a federal level. Financial institutions and money service organisations must follow the Bank Secrecy Act (BSA) and its AML rules, which include conducting thorough client due diligence, reporting suspicious transactions, and maintaining complete AML programmes.

Money service firms, such as money transmitters, check cashers, currency exchanges, and prepaid access providers, are required to register with FinCEN as MSBs. This registration aids in ensuring compliance with federal AML requirements and offers a structure for monitoring and reporting financial activities.

The country is located in North America and is bounded to the west by the Pacific Ocean and to the east by the Atlantic Ocean. Canada forms the northern border, while Mexico forms the southern border. There are 50 states and the District of Columbia.

According to Worldometer’s elaboration of the most recent United Nations data, the current population of the United States of America is 336,502,050 as of Saturday, May 6, 2023. According to UN figures, the 2020 population of the United States is predicted to be 331,002,651 people at the midpoint of the year.

The United States does not have an official language at the federal level, yet English is the most widely spoken language.

The law of the United States is made up of numerous levels of codified and uncodified legislation, the most important of which is the nation’s Constitution, which prescribes the foundation of the federal government of the United States as well as certain civil liberties.

1. Legitimacy and Compliance

By registering as an MSB, you demonstrate your commitment to working within the legal framework and in accordance with applicable legislation. It boosts your legitimacy and reputation as a respectable financial organisation, which is important in earning the trust of consumers, partners, and investors.

2. Access to Financial Services

MSB registration grants you access to banking and financial services that are critical to the operation of your business. Financial institutions are more likely to form ties with registered MSBs, allowing you to open bank accounts, process payments, and gain access to other financial infrastructure needed for your business.

3. AML and Compliance Framework

As an MSB, you must follow strict Anti-Money Laundering (AML) and Know Your Customer (KYC) processes. While these rules can be onerous, they also safeguard your company from being utilised for illegal purposes and help to ensure the integrity of your operations. A solid AML framework improves your company’s overall security and reputation.

4. Consumer Protection

Compliance with consumer protection regulations is frequently required for MSB registration. By following these standards, you provide your consumers confidence that their financial transactions and personal information are secure. This has the potential to attract additional clients who value the security and protection provided by registered MSBs.

5. Expanded Market Reach

MSB registration allows you to broaden your market reach by offering your services to customers in many states. Although each state may have its own licencing requirements, establishing a foundation as a registered MSB allows you to more quickly negotiate the state-level regulatory framework.

6. Regulatory Support and Guidance

When you register as an MSB, you gain access to regulatory guidelines and support. Financial Crimes Enforcement Network (FinCEN) agencies can give materials, clarifications, and updates on regulatory expectations, assisting you in remaining compliant with evolving regulations.

7. Potential Partnerships

Because of the increased regulatory scrutiny and compliance, several financial institutions and payment processors prefer to operate with registered MSBs. MSB registration can increase your chances of forming collaborations with established financial service providers, allowing you to tap into their networks and capabilities.


License: Money Service Business Registration
Timeframe for Approval: 1 to 2 weeks
Regulator: Department of the Treasury

Company Structure

Local Director: At least one director
Local Shareholder: At least one shareholder
Local Registered Office: Required
Local Staff: Required
Compliance Officer: Required
AML/KYC: Required
Audit: Required
Economic Substance: Required
Corporate Tax Rate: 21%
Currency: United States Dollar (USD)
Tax Structure: 0% Tax on Offshore Profits
Capital Requirement: Zero
  1. Determine Applicable Registration
  2. Obtain an Employer Identification Number (EIN)
  3. FinCEN Registration
  4. Compliance Program
  5. State-Level Registration/Licensing
  6. State Compliance and Reporting
  7. Maintain Compliance
  1. Surety Bond or Security
  2. Compliance Officer
  3. Reporting and Record-Keeping
  4. Over-the-counter (OTC) trading
  5. Independent Audit
  6. State-Specific Requirements
  7. Regulatory Updates and Compliance Monitoring
  8. Cooperation with Regulatory Authorities
  1. Company name – must have at least two words, one of which should describe the company’s core business activity, such as “payments”, “remittance”, and so on. No abbreviations are permitted.
  2. Registered address
  3. Capital
  4. Management – At the time of incorporation, at least one private director with financial experience must be appointed, and a qualified compliance officer, as well as a solid AML/CFT programme and compliance system, must be appointed and in place by the time the company begins operational activity.
  5. Compliance reporting – A company registered with FINTRAC is required to complete reports about certain types of transactions in accordance with the developed internal compliance programme. These reports include information about suspicious transactions, electronic fund transfers exceeding certain limits, large cash transactions exceeding certain limits, and terrorist property.
  6. Ownership – at least one person (legal or private).

Note: If required, TBA & Associates can provide compliance officer services in order to meet the requirements.

  1. Incorporation of offshore corporation or domestic Wyoming LLC
  2. Arrange for local registered officer and local directors, if required
  3. Draft corporate bylaws, minutes and owner share issuances
  4. Establishment of corporate bank account suitable for cryptocurrency exchange operations
  5. Establishment of merchant service account for accepting credit and debit cards
  6. Draft requisite business plan, financial statements and financial projections
  7. Draft requisite Anti-Money Laundering & Know-Your-Customer policies
  8. Arrange for requisite surety bond
  9. Prepare and process application for Money Service Business Registration
  10. Representation before licensing regulatory authority, banks and liquidity providers