On May 24, 2021, the Conference of State Bank Supervisors (CSBS) announced a request for public comment on proposed nationwide licensing requirements for money service businesses (MSBs).
According to the CSBS President and CEO John W. Ryan, the goal of the proposal is to achieve a “national standard that allows the state system to operate as a single network while retaining local accountability and local control.”
Key aspects of the proposal include an overview of MSB specific requirements and how they apply to companies, key individuals and business location, in addition to proposed changes to the license application process for the MSB industry.
The requirements, designed to streamline the licensing process, will be integrated into the Nationwide Multistate Licensing System (NMLS). As of the end of April, 49 state agencies were using NMLS to manage MSB licenses for over 2,800 companies. MSB activities include electronic money transmission, check cashing, bill paying, and more.
Public comments on the proposal must be submitted to CSBS by July 23, 2021.