Your Fintech needs a MSB license and corresponding account to serve your clients with their money transfer.
If you want to start a payment processor of your own, you will need to partner with a corresponding bank. It is not easy to get a corresponding bank account nowadays, but with a sound AML policy and regular policies and procedures in place and in writing, corresponding banks may consider your application. Your Fintech may also plan to become an offshore bank itself. Puerto Rico, Cayman and Dominica are good jurisdictions. For Fintech companies doing blockchain and business in the EU, Lithuania also offers a special banking license designed for Tech and Cryptocurrency banking. Recently one of our clients’ special license application was approved in Lithuania.
In the US, one of the biggest challenges faced by startups in the fintech space, is that of money transmitter licensing. Obtaining money transmitter licenses is not easy. It involves a large amount of paperwork, money and time. It can take up to two years to amass all 50 state licenses for the USA.
Needless to say, not every fintech startup requires money transmitter license coverage. For most, licenses would not be a requirement, but for those who do touch money as part of their business model, getting money transmitter licenses from the states in which their clients are based is very important.
A correspondent account is an account established by a banking institution to receive deposits from, make payments on behalf of, or handle other financial transactions for another financial institution. Correspondent accounts are established through bilateral agreements between the two banks.
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$70K
Filing Fee
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