Under national law, all money services businesses are required to register with the US Department of Treasury, through the Financial Crimes Enforcement Network (FinCEN). National registration must be renewed every two years.
In addition to registering with FinCEN, money transmitter services operating within specific states must be licensed through that state’s banking department.
Many states require registration whether transmitters are located or doing business within that state. In Arizona, for example, money transmitters that are outside the state but transact with Arizona residents must be licensed in Arizona. Under national law, all money services businesses are required to have anti-money laundering (AML) procedures to ensure integrity. The policy addresses underwriting of new clients and transactions, transaction limits, policies to prevent money laundering or the funding of terrorism, and policies for reporting suspicious transactions. The Bank Secrecy Act specifies particular AML criteria.