Licensed Money Services Businesses

Summary

Money services businesses (MSBs) are businesses providing money transfer, check cashing, and currency exchange services to individuals and companies. MSBs, including money transmitters (check and money order sellers), are subject to a host of federal and state laws and anti-money laundering (AML) regulations that limit the scope of their activities and operations. At the federal level, these AML laws and regulations are promulgated by the federal Financial Crimes Enforcement Network (FinCEN), and at the state level, various state regulatory enforcement agencies are responsible for developing and implementing state regulations (e.g., New York Department of Financial Services (NYDFS)). This practice note outlines the basic regulatory framework and compliance requirements for regulated MSBs and state-licensed money transmitters.