FinCEN MSB Registration Attorneys
Determining whether your business is a money services business, preparing the FinCEN registration, and building the anti money laundering program that comes with it.
Registration with the Financial Crimes Enforcement Network is the federal starting point for any money services business. With limited exceptions, each money services business must register with FinCEN whether or not it is licensed as a money services business by any state. The obligation attaches to the owner or controlling person and runs on a fixed deadline, and money services business status separately brings a written anti money laundering program, recordkeeping, and reporting duties, even where registration is not required.
Industria Business Lawyers advises businesses on whether they are a money services business at all, which category applies, whether an exception to registration is available, and how to complete and maintain the registration. We also prepare the program documents that a bank or payment partner will ask to see. Registering when you are not required to, and failing to register when you are, both create problems, so the first step is the determination, not the form. A consultation is free.
FinCEN Registration Questions We Handle
The registration rule is short. The definitions behind it are not. These are the issues that decide whether and how a business registers.
Are You a Money Services Business?
The federal definition at 31 CFR 1010.100(ff) covers several categories, including money transmitters. A money transmitter is a person that provides money transmission services, meaning the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of that value to another location or person by any means. Whether a person is a money transmitter is a matter of facts and circumstances. We make that determination in writing before anything is filed.
Federal Exclusions From Money Transmitter Status
The rule excludes a person that only provides delivery, communication, or network access services to a money transmitter; acts as a payment processor to facilitate the purchase of, or payment of a bill for, a good or service through a clearance and settlement system by agreement with the creditor or seller; operates a clearance and settlement system or otherwise acts as an intermediary solely between BSA regulated institutions; physically transports currency as a business, such as an armored car, from one person to the same person at another location while holding no more than a custodial interest; provides prepaid access; or accepts and transmits funds only integral to the sale of goods or the provision of services by that person. Each exclusion has conditions, and we test them against your actual flow of funds.
Exceptions to the Registration Requirement
Registration is not required of a person that is a money services business solely because it serves as an agent of another money services business, and the rule contains other limited exceptions. A business that qualifies for an exception still needs to document why, because banking partners and examiners will ask.
Preparing and Filing the Registration
The registration is filed on the form FinCEN specifies and is the responsibility of the person who owns or controls the business (31 CFR 1022.380(c)). It must report the information the statute and form require, including branch locations, and a copy must be retained. We prepare the filing, confirm who must sign, and keep the file.
Deadlines and Renewals
The initial registration must be filed on or before the end of the 180 day period beginning the day after the business is established. The initial registration period is two calendar years, and the registration must be renewed for each two calendar year period after that, with the renewal filed by the last day of the calendar year preceding the renewal period. Certain changes in ownership or control require re-registration.
Anti Money Laundering Program
Under 31 CFR 1022.210, each money services business must develop, implement, and maintain an effective written anti money laundering program, commensurate with the risks posed by its location, size, and the nature and volume of its services, that at a minimum includes policies, procedures, and internal controls, a designated compliance person, training, and independent review. We draft the program to fit the business rather than a template.
What Registration Does and Does Not Do
Clients often assume the FinCEN filing is the license. It is not.
Registration is a federal filing. It records the business with the Department of the Treasury, but the compliance obligations that apply to money services businesses do not depend on registering; the written anti money laundering program, for example, is due within 90 days after the business is established. It does not authorize the business to operate in any state.
State licensing is separate. Each state decides who needs a money transmitter license and what exemptions exist. Florida, Texas, New York, Massachusetts and the District of Columbia, for example, each prohibit engaging in money transmission without a license from their own regulator, subject to their own exemptions. A business can be required to register with FinCEN and to hold licenses in several states at the same time.
Banking partners look at both. A bank or payment processor onboarding a payments business will ask for the FinCEN registration, the anti money laundering program, and the state licensing analysis together, and an application is reviewed with all three in view.
Exceptions still need a record. A business that concludes it is not a money services business, or that an exception applies, keeps the written analysis supporting that conclusion for the same partners and examiners.
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The attorneys were incredibly responsive, guiding me through every step of the process with clarity and professionalism.
They took the time to address all my questions and concerns, ensuring that I felt confident in each decision we made. Their attention to detail and thoroughness were evident in the documents they prepared, which gave me peace of mind. What stood out most was their commitment to my vision. They not only provided legal advice but also offered valuable insights into the industry, helping me navigate potential challenges and seize opportunities.
Overall, working with IBL was a fantastic experience. They made a complex process manageable and stress-free. Thank you for your outstanding support.”
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How We Handle a FinCEN Registration Matter
What the business does, where its customers are, monthly transaction count and dollar volume, how long funds are held, who can direct them, and what agreements exist.
Each payment traced from source to final recipient, identifying every point at which the business accepts or transmits value.
The federal definitions and exclusions applied and the conclusion documented in writing, including which category applies.
Whether any exception to the registration requirement applies, with the basis documented.
The registration prepared, the owner or controlling person who must sign confirmed, the filing made, and the required copy retained.
The written anti money laundering program and the related policies and internal controls, sized to the business.
Renewal dates calendared, ownership or control changes that require re-registration monitored, and the program updated as the business grows.
FAQ
01 • FinCEN Who is responsible for registering a money services business?
FinCEN states that registration is the responsibility of the owner or controlling person of the money services business, and that if more than one person owns or controls it, they may agree to designate one of them to register, without relieving the others of liability if the designated person fails to do so.
02 • FinCEN When is the registration due?
The initial registration must be filed on or before the end of the 180 day period beginning the day after the business is established. Renewals are filed by the last day of the calendar year preceding each two calendar year renewal period.
03 • FinCEN Does registering with FinCEN mean I do not need a state license?
No. The federal rule requires registration whether or not the business is licensed by any state, and each state separately decides whether a license is required. The two obligations run in parallel.
04 • FinCEN Does an agent of another money services business need to register?
A person that is a money services business solely because that person serves as an agent of another money services business is not required to register. The principal must maintain a list of its agents.
05 • FinCEN What records must be kept?
A copy of the filed registration form and supporting documentation must be retained. The rule requires that the copy and any registration number be kept at a location in the United States for five years (31 CFR 1022.380(b)(1)(iii) and 1010.430(d)). The anti money laundering program must be in writing and available for inspection by the Department of the Treasury on request.
We handle federal matters nationwide and state-law matters in the states where our lawyers are admitted. Where another state’s law applies, we work with local counsel licensed in that state. Call (202) 860-1210 or describe your business through the form. Free consultation. Not every business is a money services business, and we will review whether the rule applies to yours and what registering would involve.
This page provides general information about FinCEN registration of money services businesses and does not constitute legal advice. Reading it does not create an attorney-client relationship with Industria Business Lawyers. Whether a particular business must register depends on its specific facts and the law in force. Regulations cited are subject to change.