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United States MSB License

United States MSB License

United States MSB license is issued by Financial Crimes Enforcement Network (FinCEN), required for money and related financial business to operate.

Why apply for a US MSB financial license?
  • Investor Recognition - US corporate law and financial industry regulations are very well-established. With an US license, your digital currency trading platform will be more recognized by clients.
  • Get authoritative approval - With the authoritative approval of the US Treasury, you can carry out related business in the United States and globally, which means the compliance supervision of digital currency platforms.
  • Become a first-tier reputable platform - The MSB license is also the standard license for global digital currency trading institutions. Coinbase, Bitfinex, Poloniex, and other platforms owns this license for their business.
  • Diversified Services - The MSB license allows currency exchange and delivery services, enabling you to better meet customer needs and provide more diversified services.

  • The term "money services business" includes any person doing business, whether or not on a regular basis or as an organized business concern, in one or more of the following capacities::
  • Currency dealer or exchanger
  • Check casher
  • Issuer of traveler's checks, money orders or stored value
  • Seller or redeemer of traveler's checks, money orders or stored value
  • Money transmitter
  • U.S. Postal Service

  • Compliance program:

    All MSBs are required to develop and implement an anti-money laundering (AML) compliance program. The program should reasonably prevent individuals from using the MSB to facilitate money laundering or to finance terrorist activities. Each program must be written and take into account the inherent risks, as well as:

  • Designate a person to assure day-to-day compliance with the BSA;
  • Incorporate policies, procedures and internal controls reasonably designed to assure compliance with the BSA;
  • Provide education and training to appropriate personnel; and
  • Provide for an independent review to monitor and maintain an adequate program.

  • Know your client:

    As a money services business, you must verify the identity of clients for certain activities and transactions according to theThe Money Laundering Control Act of 1986. Part of knowing your client includes feature to identify clients, as well as conducting certain additional activities as listed below:
  • Establish and verify the identity of the customer / account holder, or in certain cases, the identity of a non-account holder (such as a beneficiary);
  • After forming a customer relationship, continuously monitor the nature of the customer's business activities based on specific risks (to ultimately determine that the source of the customer's funds is legitimate and that the business activities meet the required purposes);
  • Assess the anti-money laundering and terrorist financing risks associated with this client.

  • Reporting Cash Transactions

    MSBs must electronically file FinCEN Form 112, Currency Transaction Report, when they have a cash-in or cash-out currency transaction, or multiple transactions, totaling more than $10,000 during one business day for any one person, or on behalf of any one person.

    Reporting Suspicious Activities

    Generally, MSBs that know, suspect or have reason to suspect that the transaction or pattern of transactions is suspicious and involves $2,000 or more, must electronically file a FinCEN Form 111, Suspicious Activity Report on the activity.

    Documentation Requirement:

  • Basic information on US companies, including company tax numbers;
  • Detailed personal information of shareholders and directors of U.S. companies (scanned copies of passports, personal phone numbers, residential addresses, etc., shareholders preferably have US SSN);
  • U.S. office address;
  • Service type, refer to MSB service type list;
  • Total Transaction Amount: Lists the total transaction amount of financial products or services issued by MSB for each individual month in the previous 12 months exceeding $ 100,000;
  • Provide bank / account information (opening account, account number, bank account branch address);
  • Contact details of the compliance officer;
  • Branches (if there are operating outlets)

  • UCG Services

  • Company formation
  • License application document preparation assistance
  • AML CTF program, compliance program and risk assessment
  • Provision of local compliance officer which is requested by FINCEN
  • Application lodgment to FINCEN
  • Maintanence after application success

  • Duration to set up: 1 month