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FAQ: License, Bank Account & Regulation

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

Yes we can help any firm established or looking to establish in the UK, Europe and the US.

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

It is tricky to tell how long it will take for a firm to get their MSB license. There are different types of MSB licenses – Small Payment Institution, Authorised Payment InstitutionSmall E-Money Institution and Authorised E-Money Institution. We at RemitONE work with some of the leading remittance consulting firms in the industry and offer end to end money transfer solutions. Based on what we observe, an SPI license can take anywhere from one to three months; API license can take three to six months and E-Money license can take around 8 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 me get my SPI and API licenses?

Yes we can help you acquire licenses for Small Payment Institution, Authorised Payment Institution, Small E-Money Institution and Authorised E-Money Institution. To date, we have helped countless firms get licensed in the UK, Europe and the US. We work with the most well-known remittance consulting firms in the industry. We have a 98% success rate in helping firms get licensed in the UK and Europe.

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

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. But with our experienced consultants and our industry proven, compliant and secure money transfer platform supporting you, you can indeed significantly improve your chances of getting your own bank account. Get more information.

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 reliable 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, you need to register with HMRC and apply for a Small Payment Institution (SPI) or Authorised Payment Institution (API) license with the Financial Conduct Authority).
  • Attain a special money transfer bank account with a licensed financial services institution in your country (e.g. Barclay’s Bank in the UK).
  • 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.

Do I really need a system to manage my money transfer business? Why do I need a system if I can work with spread-sheets?

Compliance is a big issue in the remittance industry and almost all central banks/regulators around the globe are encouraging money service businesses to adopt a secure, robust and compliant remittance platform that can effectively enforce proper KYC procedures and AML/block-list checks against remitters and beneficiaries and track all transactional information for compliance purposes.

Another reason why governments are recommending automated remittance platforms to money service businesses is because such platforms make use of the latest technologies to improve the speed and efficiency of transactions. Modern money transfer platforms can perform all the required checks and provide the required information to the correct delivery agent instantly. They store all the relevant identification documents in one place and enhance customer service by making business critical information instantly available to your send and delivery agents.

Additionally, these automated remittance platforms can also provide very accurate financial information about your business, profit/loss on a per transaction level and reports for auditing and compliance purposes.

What is a money transfer business?

Essentially, a money transfer or remittance business involves offering the service to collect money from the sender and deliver it to the beneficiary. This can be a local service within the same country or a cross-border/international service between two or more countries.

A business managing the remittance process is called a money service business (MSB) which can include banks and money transfer operators (MTOs).

In most cases, the remitter will go to a physical location (shop, kiosk, etc.) and hand cash to the MTO teller which is then sent to the beneficiary in another country. The MTO will agree with a delivery agent (typically a bank) an exchange rate between the send and delivery currencies along with any additional charges, such as commissions, head office fee, etc. The remitter will be given a receipt showing all the details including who the money should be picked up by and how much delivery currency will be given.

The MTO then deposits the cash into their bank account, and when it has collected a large amount, it will typically make a bulk transfer to the delivery agent in the destination country. This is usually done daily, weekly or monthly, depending on the agreement between the MTO and the delivery agent.

The delivery agent delivers the money to the beneficiary at the agent’s physical location (shop, agent outlet etc.) once they receive instructions from the MTO.

Depending on the agreement between the MTO and the delivery agent, the latter may deliver the money on credit, or request for a deposit to be kept up-front from the MTO. The delivery agent will usually charge a commission for its service.

Each send-receive cycle is referred to as a transaction.

The MTO usually makes a profit in two ways:

  • By offering a lower exchange rate to the remitter than what the MTO must pay to the delivery agent.
  • By charging a fee or commission for the service (this fee usually varies depending on the amount being sent).

Some newer developments in the remittance industry are:

  • Allowing the remitter to create and pay for a transaction through a mobile phone or an Internet portal or website. In this scenario, the remitter does not have to physically go to a shop or an agent outlet.
  • Allowing the remitter to create and pay for a transaction using SMS text messages. Again, in this case, the remitter does not have to physically go to a shop or an agent outlet.
  • Remitter and beneficiary receipts can be sent automatically by email or SMS text messages.
  • Remitter can top-up the airtime on the beneficiary’s mobile phone.

Our solution diagram provides more information. Arrange a demo with us to find out more.

What Others Say

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

We know very little about computer systems but RemitONE is so easy to use we were fully operational within days.  Support from the RemitONE team is excellent so we don’t need any technical knowledge to run the system.

Gulzar Ahmed, Operations Manager
ZamZam Exchange

RemitONE is an innovative company that has risen rapidly in the remittance space. The key ingredients for this success, I feel, are the people RemitONE employs and the sophisticated, robust and secure money transfer platform RemitONE has produced.

Mr Shaik Vali Ahmed, IT Manager
Mode Holdings


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