US States Money Transmitter License

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

Obtaining a Money Transmitter Licence proves that your company operates legally and in accordance with state legislation. It boosts your credibility and reputation as a legitimate financial organisation, which can lead to increased confidence among clients, partners, and investors.

2. Market Access

A Money Transmitter Licence permits you to legally operate as a money transmitter in the state(s) in which you are licenced. This grants you access to a regulated market and allows you to supply your services to inhabitants of that state. Operating with the proper licence allows you to avoid legal and regulatory stumbling blocks that may develop if you operate without authorization.

3. Consumer Protection and Trust

A Money Transmitter Licence is frequently accompanied with consumer protection regulations, such as the maintenance of reserve money or the adherence to specified disclosure and transparency standards. These rules serve to establish trust in customers by assuring them that their finances and personal information are protected.

4. Expanded Business Opportunities

Having a Money Transmitter Licence in one or more states broadens your company options. It allows you to build alliances with financial institutions, payment processors, and other authorised businesses. Furthermore, holding a state licence may make it easier to receive banking services, develop links with other regulated businesses, and explore financial industry alliances or collaborations.

5. Compliance Expertise

Developing and executing effective compliance measures, such as Anti-Money Laundering (AML) programmes and Know Your Customer (KYC) procedures, is often part of the licencing process. You gain experience in these areas through the licencing process, which increases your entire compliance posture and helps safeguard your firm from financial crime risks.

6. Competitive Advantage

A Money Transmitter Licence might give you a competitive advantage in the market. It sets you apart from unlicensed or non-compliant competitors and indicates your dedication to regulatory compliance and consumer protection. This is especially crucial for clients who prefer to work with licenced and regulated firms.

7. Interstate Expansion

After obtaining a Money Transmitter Licence in one state, the licencing process in subsequent states may be eased or expedited. Some states have reciprocal agreements or expedited processes for applicants who already have licences in other jurisdictions, making it easier to expand.


License: Money Transmitter License
Timeframe for Approval: 4 to 5 months
Regulator: Financial Crimes Enforcement Network

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
Min. Paid-up Capital: 50,000
Capital Requirement: Varies
  1. Research State Requirements
  2. Business Formation
  3. Application Preparation
  4. Surety Bond or Financial Security
  5. Background Checks
  6. Fees and Financial Statements
  7. Compliance Program
  8. Application Submission
  9. Review and Approval Process
  10. Licensing and Renewal
  1. Money Transmission
  2. Payment Services
  3. Currency Exchange
  4. Money Orders and Traveler’s Checks
  5. Virtual Currency Services
  6. Stored Value Services
  7. Check Cashing
  1. State Application
  2. Business Entity Formation
  3. Minimum Net Worth and Capital Requirements
  4. Surety Bond or Financial Security
  5. Compliance Program
  6. Background Checks
  7. Financial Statements
  8. Licensing Fees
  9. AML and Reporting Requirements
  10. Insurance
  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 United States’ Money Transmitter Licenses
  10. Representation before licensing regulatory authority, banks and liquidity providers