No notification is necessary. During a state audit, the auditor can ask you to show the correspondent tie-up agreement. Truth be told, all agreements, etc. for money transmission will be reviewed during a state audit. MTOs are free to enter and exit into any agreement they wish. No prior permission is required.
You can do that by going to FCA’s website and then applying for a Small Payment Institution (SPI) License. The SPI license is the entry point towards starting a money transfer business. Here is a small 2-minute video I made for those interested in knowing the difference between an SPI vs an API (API being […]
If it involves US Dollar clearing, then the answer is yes. They are quite strict and if your bank that does US Dollar clearing is not strict, consider it a blessing. Most international banks are not as uptight and strict as the US Banks. However, when it comes to competing landscapes, then banking is quite strict. Allow […]
Does a remittance service/app that help people to find hawaladars or others to exchange their money with, but does not take part in money transactions (exchange will be outside the service/app) need to be registered with the FCA or HMRC in the UK?
If you include a fee for registration and/or take a fee for enabling this transaction, then you would be required to register with the FCA / HMRC (IMHO) as you’ve just executed a function of an intermediary. There is a false sense that an intermediary has to have/channel the funds (i.e. touch the money) in […]
You would have to tax it on a state-wide level. It is already in effect in one state: Oklahoma. The remittance tax in OK is $5 for remittances up to $500 and 1% of the total amount being remitted over $500. The financial regulator of the state can make this tax deduction mandatory on a […]