Answers › State money transmission licensing
Is FinCEN registration a license to operate as a money transmitter?
No. FinCEN registration is not a license to operate as a money transmitter. FinCEN says it does not license MSBs, and states separately require licenses.
What the guidance says:
- Registration with FinCEN, and appearing on the MSB Registrant Search Page, is not a recommendation, certification of legitimacy, or endorsement by FinCEN or any other U.S. government agency (FIN-2024-Alert005).
- MSBs must register with and are regulated by FinCEN, but FinCEN does not license MSBs to operate in the United States. Any claim that a registration equates to a license is false (FIN-2024-Alert005).
- MSBs are also regulated by states or territories, including, "with very limited exception", needing a license for each state or territory in which they operate. Requirements vary by state, but in general states require MSBs to register with FinCEN as part of licensing (FIN-2024-Alert005).
- With limited exceptions, a person meeting the MSB definition must register within 180 days after the MSB is established (FIN-2024-Alert005).
- Filing false or materially incomplete registration information is a BSA violation. A money transmitting business that fails to comply with FinCEN's registration requirements falls within the term "unlicensed money transmitting business" (FIN-2024-Alert005).
What to do:
- Confirm you hold a license in every state or territory where you operate, and document any exception you rely on. State authorizations can be checked through the NMLS Consumer Access search page.
- Register with FinCEN within the 180-day window unless an exception applies, and keep the registration data complete and accurate.
- Never describe your registration as a license, approval or endorsement in marketing or to banks and counterparties. The alert lists such claims as red flags.
- When vetting a counterparty, treat a company that is registered as an MSB with FinCEN but is not licensed with any U.S. state or territorial financial regulator where it claims to operate as a red flag, and check the state license directly. No single red flag is determinative, so consider the surrounding facts and circumstances.
Sources
- FinCEN FIN-2024-Alert005: https://www.fincen.gov/system/files/2024-12/Alert-FinCEN-Scams-FINAL508.pdf
This answer is general information, not legal advice. Forteris is not a law firm.
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