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FAQ: License, Bank Account & Regulation

I want to set up my own money transfer business. What steps must I take to become operational at the earliest?

In order to set up your own money transfer business in your country, you essentially need to carry out the following four tasks: 

  • Have a proven compliant money transfer system in place. Arrange a demo with us. 
  • Apply for a money service business (MSB) license with your regulator (if you are based in the UK, we can help you apply for all types of MSB licenses such as Small Payment Institution (SPI), Authorised Payment Institution (API), Small E-Money Institution (SEMI) and Authorised E-Money Institution (AEMI). 
  • Attain a special money transfer bank account with a licensed financial services institution in your country (if you are applying in the UK, we can assist you with your own remittance bank account). 
  • Partner with a delivery/pay-out network in the destination country where you plan to send money. Alternatively, you can make use of our existing contacts with established delivery agents worldwide. See RemitONE Connections™ . 

RemitONE Consulting can help you get started as a money transfer operator from start-up to expansion and beyond. Our training sessions, contract and professional introductions can give your license application credibility from a trusted name. Enquire about RemitONE Consulting. 

 

Can you help with our Remittance bank account in the United States?

Yes we can. We have partnered with a consulting firm in the US who assist clients in getting remittance bank accounts through their partner bank. Contact us for more information. 

Can you help with our Remittance bank account in the UK?

Yes we can. As you can appreciate, this is one of the most challenging things to do in our industry; hence there are no guarantees. However, we have partnered with a licensed bank account provider in the UK and subject to proper due diligence we can assist you in getting a client segregated/remittance account with sort code and account number for your business. This service is called RemitONE Proton and is part of RemitONE Consulting. 

How long does it take to get our MSB license in the UK?

It is difficult to say how long it will take for a firm to get their MSB license. There are different types of MSB licenses – Small Payment InstitutionAuthorised Payment InstitutionSmall E-Money Institution and Authorised E-Money Institution. Based on what we’ve seen, an SPI license can take anywhere from 1 – 3 months; API license can take 3 – 6 months and E-Money license can take 8 – 12 months. Of course, the time it takes for you to get your license depends on a number of factors and the time frames given here are just estimates and can indeed vary.

Can you help with Money Service Business (MSB) licenses in the United States?

In the US, state by state licensing is quite a burden but RemitONE works with  team of consultants who can guide you to choose the best state or states and plan your licensing progress effectively and affordably. The consultants will help you with the entire MSB application process in the US. 

Can you help with Money Service Business (MSB) licenses in the UK and Europe?

Yes, we can help any established firm or new entity looking to establish an MSB in the UK and Europe. RemitONE has an in-house Consulting team with an excellent track record to assist you with your MSB application.  

There are several independent consultants who can help in getting a Money Service Business (MSB) license in the UK and Europe. Why should we use RemitONE?

The Second Payment Services Directive (PSD2) places special emphasis on IT rules, security protocols and enhanced compliance. As a company interested in the money service / remittance industry, you need to first demonstrate to the UK / EU regulator that you either use or plan to use a proven compliant software technology to manage your money service business.  

RemitONE provides you with both a proven money transfer platform which has been evaluated by several regulators worldwide and assist you in getting an MSB license for your business based on our technology. We have a 100% success rate in helping clients get licensed in the UK. We can also connect you to our licensed and regulated partners to help you get a remittance bank account.  

Not only that but we can also connect you to our ecosystem of clients and partners worldwide, helping you tap into several remittance markets instantly. 

If you wish to use independent consultants to apply for an MSB license, you will still need to fulfill the technology piece prior to submitting your application to the UK regulator. This means that you will still need to find a technology provider. 

RemitONE is an end to end solutions provider, guaranteeing you first class technology and consulting service at competitive rates. 

Can you help with payment institution licenses in welcoming jurisdictions such as Lithuania, Cyprus, Malta, Gibraltar?

Yes, we can help any established firm or new entity looking to take advantage of what these jurisdictions are offering the companies that could benefit by establishing a presence in these countries and seizing the opportunities they offer. Our consulting partners, after listening to your needs and services, will advise you in the pros and cons of each one and will guide you in having a successful, effective and affordable licensing process.

What is the Second Payment Services Directive (PSD2) and why is it important to you?

With the arrival of the PSD2, all EU and UK authorised firms must re-apply to their financial regulator in order to retain their license. Payment Institutions and Electronic Money Institutions are tasked to ensure that they have implemented new IT rules, security protocols and further enhanced compliance if they wish to be able to continue to provide their services. 

A brief example of some of the IT rules are: 

  • Procedures for monitoring security incidents 
  • Handling security related customer complaints 
  • Implementing incident reporting systems 
  • Managing the data for sensitive payments
  • Detailed Business Continuity Planning 
  • Risk assessments 
  • Identification of fraud risks 
  • Management of personal data 

Why the need for PSD2? 

  • The new rules are designed to make Payment Institutions enhance and review business performance 
  • The new requirements could work to improve the security of your business and so in turn improve the attractiveness of your business to customers, thus making the sector more viable and safer amidst the current market climate 
  • You can make online payments to merchants without going through PayPal or Visa 
  • Stronger ID checks on your customers to ensure security and fraud prevention 
  • Breaking down the monopoly of the banks who will have to share customer data with merchants 
  • Banks should share their API with licensed firms to facilitate payments and other functions 

What does PSD2 say about hidden fees? 

The PSD2 prohibits the use of non- transparent pricing methods for international payments. What this means is that banks and brokers cannot hide costs in the form of poor exchange rates which are much lower than the market rate seen on Google. 

Can you help with Money Service Business (MSB) licenses in Europe and the US?

Yes, we can help any established firm or new entity looking to establish in Europe and the US. Whether you are planning to open in Spain, France, Germany or any other European country or willing to passport your license to any other country, our consulting partners can be there to help you. In the US, state by state licensing is quite a burden but our consulting partners can guide you to choose the best state or states and plan your licensing progress effectively and affordably.

What Others Say

The RemitONE platform is highly robust, scalable and secure. We use it to reach out to customers via our agent network and online portal. The platform enables us to mitigate fraud and stay compliant at all times through both these channels. Creating compliance rules is very quick and simple in the platform and I strongly recommend it.

Mr Azad Kamrul, CEO
B A Exchange, part of Bank Asia

We implemented RemitONE in UBA for 18 countries. We had a short implementation timeline and a couple of customization and integration with our core system and other solutions. The timeline for completion was very aggressive, but with the relentless support of RemitONE staff and management we were able to go live on time, within cost and the solution surpassed its proposed benefits. I need to mention that the implementation and post go – live were all done remotely; this speaks to the flexibility and agility of the solution and the adaptability of the RemitONE implementation team.

Lanre Bamisebi , CIO
United Bank for Africa

RemitONE has created a global ecosystem of money transfer operators using its proven platforms and consulting services. RemitONE provides efficiency for all the stakeholders in the remittance chain.

Mohit Davar, Former CEO
Moneygram and Travelex/Coinstar


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