Yes, of course, there is a workaround. It is akin to leasing a car. Imagine if you will that you would be launching a taxi service – do you lease your cars? buy them? or build them? Conventional wisdom would say, lease, then buy and then build. The very same analogy applied to the money […]
What regulations would a peer to peer money transfer platform face (TransferWise model but without an intermediary)? The platform does not touch money. It allows peers to find matching, opposing transactions and conduct the money exchange themselves.
If a State or Federal regulator cannot find an exact way to pin this marketplace down, then they go after intent. Barring the problem the marketplace will face with respect to trust, etc. let us look at the intent. The intent will clearly how that without the market place, the transaction cannot take place. How […]
If I receive money on behalf of another person to make a purchase online for them, am I a money transmitter? I am in the US receiving dollars to make purchase online on behalf of a person living outside of the US.
This comes under the Agent of Payee exemption and as such, IIRC only 12 or 13 US States recognize this exemption. Other States don’t provide an exemption, so you need a money transmitter licenses for those states.
Do I need a money transmitter license if I receive money on behalf of a person in another country (e.g., Ghana)? I make a pay out to this person in Ghana at the end of every month. This arrangement prevents excessive microtransaction fees.
This makes you an intermediary, when you cited on behalf of a person, implies you are neither the owner of the transaction, nor the recipient and hence this makes you an intermediary, and where ever you go, in most countries this would classify you as a money transfer business and thus require you to get licensed.
Are you considered a money transmitter if your end users sends you their private keys to send funds on their behalf?
It depends. Typically as a money transmitter, you are neither the owner of the transaction nor the beneficiary. You are acting as an intermediary. Whether the funds are pushed to you, or the funds are pulled by you, via authorization, the fact remains the same, you are acting as an intermediary to execute the transaction. […]
Are payroll service providers considered to be money transmitters/money service businesses? And if not, why?
Originally, payroll companies did not need to be licensed. That is how the bulk of them operated. 100s of companies processed funds on behalf of their customers and no money transmitter licenses were required of them. However, if we look at the flow of funds, if funds are processed through them, then yes, they are […]
Is a Money Service Business that is exempted from money transmission license requirement required to be licensed in all US states or is FinCEN registration sufficient?
If you are an MSB that is exempt from MTLs – that exemption would apply on a state by state basis. So for the states you are exempt, you are exempt, but others may require you to obtain a license. As far as FinCEN registration is concerned, if you are deemed to be an MSB, […]
Do you need to have a money transmitter license (MTL) in New Jersey if you are operating a bitcoin ATM business? If so, for what particular reason?
Yes. Reason, because you are providing intermediary services with cash (can even be electronic) of which money receiving and transmission is at the core. Source: Foreign Money Transmitter/Money Transmitter
My clients are not knowledgeable about new fintech remittance apps that are faster and cheaper. Is it illegal to make money from doing this in the US? Yes, this is clearly prohibited and illegal on two fronts. First, when you collect money that doesn’t belong to you, i.e. you are neither the originator or the funds, not […]
If I want to start an international money transfer business, do I have to obtain money transmitter licenses AND an MSB license?
Yes, however, there is a slight difference between the two. A license is required nonetheless. Alternatively, you can become a reseller (better read as Agent) for a company that already has all the legal requirements fulfilled. If your business would be online, then you need a money service business as well as a Money Transmitter license […]