A money transfer licence is the permission a business needs to receive money from one person and send it to another, at home or across borders. No country issues a document with that exact name. The UK authorises payment institutions, the US registers money services businesses federally and licenses money transmitters by state, Canada registers money services businesses with FINTRAC, and Australia registers remittance providers with AUSTRAC.
The right starting point is therefore not the licence but the business: which market it launches in, how the money moves, and which entity holds it. A sound order of work is to choose the launch market, map the flow of funds, identify the permission, build the compliance and banking arrangements, and then prepare the application.
A licensed money transfer business can offer domestic and international remittance, cross-border payments and the currency exchange that goes with them. It does not by itself allow the business to issue e-money, take deposits, lend or provide investment services. If customers will hold balances for later use, the product may fall under e-money or stored value rules, which need a different permission.
| Country | Regulator | Permission for money transfer |
|---|---|---|
| United Kingdom | Financial Conduct Authority (FCA); HM Revenue and Customs (HMRC) | Small payment institution (SPI) registration or authorised payment institution (API); HMRC registration unless the FCA supervises for money laundering |
| United States | FinCEN; each state regulator | FinCEN money services business (MSB) registration plus a money transmitter licence in each state served |
| Canada | FINTRAC; Bank of Canada | MSB or foreign MSB registration; Retail Payment Activities Act registration where it applies |
| Australia | AUSTRAC | Enrolment and registration as a remittance provider, with an AML/CTF programme |
Money remittance is a payment service under the Payment Services Regulations 2017. A smaller business registers with the FCA as an SPI, available where the average monthly value of payment transactions over the previous 12 months does not exceed €3 million and the firm does not provide payment initiation or account information services. Larger or broader businesses apply for API authorisation, with initial capital of €20,000 for money remittance alone and up to €125,000 for other payment services. Our guide to FCA SPI registration covers the smaller route in detail.
A money transmitter also registers with HMRC for anti-money laundering supervision unless the FCA already supervises it for money laundering purposes. HMRC charges a one-off £300 fee, £400 per premises and £500 for each person who takes the fit and proper test.
Every money transmitter registers with FinCEN on Form 107 within 180 days of establishment. Registration is free and renewed every two years, but it authorises nothing on its own. Forty-nine states and the District of Columbia also license money transmission; Montana has no general licensing law. Each state sets its own application fee, surety bond and minimum net worth, and most applications are filed through the Nationwide Multistate Licensing System (NMLS). Our state-by-state US money transmitter guide sets out the regulators and fees.
A business providing remittance or funds transfer in Canada registers with FINTRAC before it operates, as an MSB if it has a place of business in Canada or as a foreign MSB if it serves Canadian clients from abroad. FINTRAC charges no fee, registration lasts two years, and FINTRAC states that it processes most complete applications within three months. Payment service providers within the Retail Payment Activities Act also register with the Bank of Canada; one registration does not replace the other.
A remittance business enrols with AUSTRAC and registers as a remittance provider before it provides services, and runs an anti-money laundering and counter-terrorism financing (AML/CTF) programme. The AML/CTF Act reforms for remittance and virtual asset services took effect on 31 March 2026, and further businesses, known as tranche 2, came under AUSTRAC regulation from 1 July 2026. Our guide to AUSTRAC remittance registration covers the reformed regime.
Map the customer journey from end to end: who the customer is, who sends the money, which company receives it, which bank account it sits in, who controls it, who performs the currency exchange, who pays the beneficiary, and what happens if a payment is returned. Draw it as a diagram with every entity and account on it.
This map decides whether the business is the regulated money transmitter, an agent of one, a technology provider to one, or something else. It also shows whether the product involves e-money (customers holding balances) or other regulated services, and which entity in the group needs the permission.
Licensing every market at once spreads capital, management time and compliance resources thin. Rank the candidate markets by revenue potential, customer demand, regulatory cost, availability of banking and time to launch, and start with one market or one corridor.
A focused first corridor, for example UK to Pakistan or US to Mexico, produces customer evidence, transaction data and banking references that make every later application stronger. The table below gives the published regulator timings.
| Permission | Regulator's published timing | Firm's planning figure |
|---|---|---|
| UK API authorisation | Complete applications decided within 3 months | 6 to 8 months after submission |
| UK SPI registration | Complete applications decided within 3 months | A few months |
| US FinCEN registration | Listed within about 2 weeks of electronic filing | Weeks |
| US state licence | Set by each state | 3 to 6 months in most states |
| Canada FINTRAC registration | Most complete applications within 3 months | Weeks to a few months |
| Australia AUSTRAC registration | Set by AUSTRAC | Weeks to a few months |
Regulators expect transparent ownership, clear lines of control and directors and managers with relevant experience. A group structure with several layers is acceptable if the organisation chart reaches every individual owner and explains the purpose of each company.
Management should match the risk of the model. A high-value, multi-corridor business needs stronger finance, compliance and operations leadership than a small domestic remitter. In the UK the FCA assesses the directors and the MLRO (money laundering reporting officer) for fitness and propriety; in the US each state runs background checks and fingerprints on control persons; FINTRAC asks for criminal record checks for senior officers and anyone owning or controlling 20% or more.
The business plan describes the business as it will actually operate: customers, countries, currencies, transaction values, pricing, distribution channels, staffing, partners, banks, technology and compliance. The financial model shows three years of volumes, revenue, costs and capital, with the assumptions stated.
Regulators read the plan and the resourcing together. A plan that expects 10,000 customers in the first year is matched by compliance, customer support and monitoring capacity sized for 10,000 customers. Where ambition and resources line up, the application reads as credible.
Every regime requires an anti-money laundering programme proportionate to the business. The core controls are:
The programme reflects the real customer base. An importer paying £100,000 to overseas suppliers has a different monitoring profile from a consumer app sending £300 to family abroad, and the rules, thresholds and reviews differ accordingly.
A licence does not oblige any bank to open an account. Banks assess the owners, customer types, countries, volumes, anti-money laundering controls and regulatory status for themselves, and many have limited appetite for new money transfer businesses.
Banking therefore runs in parallel with licensing, together with the currency exchange provider, payout partners in destination countries, correspondent banks, processors and, in the UK, the safeguarding account that holds customer funds. Regulators ask to see these arrangements in the application. Our banking and payment processing page covers how the firm arranges them.
Every document in the application describes the same entities, products and assumptions: the flow of funds, business plan, financial forecasts, organisation chart, AML framework, safeguarding or permissible investments, and banking model. Consistency across them is what lets a regulator assess the file at its normal pace.
Strong applications answer the regulator's likely questions in advance:
Regulator fees are a small part of the cost. The main costs are capital, compliance people and systems, and banking.
| Item | Published figure |
|---|---|
| UK SPI registration fee | £1,130 |
| UK API authorisation fee | £2,820 or £5,640 depending on services |
| UK API initial capital | €20,000 for money remittance; up to €125,000 for other services |
| UK HMRC registration | £300 plus £400 per premises and £500 per person tested |
| US FinCEN registration | Free |
| US state licence application | From $375 in Florida to $10,000 in Texas |
| US net worth and bond (MTMA states) | At least $100,000 net worth and a $100,000 to $500,000 bond per state |
| Canada FINTRAC registration | Free |
Beyond these, every business budgets for company formation, advisory support, compliance staff, identity verification, screening and monitoring software, audits, insurance where required, and ongoing regulatory reporting. A single-country UK or Canadian launch is the lightest. A multistate US programme is the heaviest, because bonds and net worth multiply with each state.
A business can launch without its own licence by working with a regulated firm: as its agent, under a sponsored programme, or as a distribution partner that introduces customers. These routes shorten time to market and let the business test demand before investing in its own permissions.
The trade-off is control. The regulated principal is responsible for the customers and the compliance, so it sets onboarding standards, risk limits and product boundaries and can change commercial terms. A business that plans to scale usually moves to its own licence once volumes justify it. In the UK, an SPI registration is often the first step towards an API authorisation; in the US, operating as an agent in some states can run alongside the business's own state licence programme.
Across the four countries, regulators look for the same features in a money transfer application:
Our comparison of MSB registration in the US, Canada and UK sets out how to verify a provider's registration in each country.
A money transfer permission carries continuing obligations in every country that grants it:
Every regime also expects prior notice or approval of changes of control, new products and new key people. Planning these obligations into the compliance calendar from launch keeps the permission in good standing.
The firm advises payment and money transfer businesses on the full route: perimeter analysis, licence selection, FCA applications, US, Canadian and Australian registrations and licences, business plans and forecasts, AML frameworks, safeguarding, governance and regulator engagement. It also arranges the banking and payment processing a new money transfer business needs to launch.
Usually yes, if the business itself receives and transmits customer funds. The permission depends on the country, the entity that holds the funds, and whether the business acts as an agent of a licensed firm.
There is no single answer. FINTRAC registration in Canada is free and FinCEN registration is free, but the best launch market is the one that combines a workable permission with the customers and banking the business needs.
Yes, or a local regulated partner. A UK FCA permission does not cover the US, Canada, the EU or Australia.
Possibly, through a technology, agency or partner structure, provided the contracts and the actual flow of funds show that a regulated firm holds and transmits the money.
Often, as its agent or under a permitted partnership. The regulated principal stays responsible and controls onboarding, risk limits and products.
A money transfer permission covers remittance and payment services. An EMI licence allows a business to issue e-money, so customers can hold stored balances; in the UK it needs initial capital of €350,000.
The FCA decides complete applications within three months, FINTRAC processes most within three months, and US state licences commonly take three to nine months each.
Buckingham Capital Consulting has advised money transfer and payment businesses since 2013 and has obtained FCA authorisations for remittance and payment firms including Global Send, Nexpay and Orbital, and SPI registration for Onpoint Money. It also prepares US, Canadian and Australian money services registrations and arranges the banking a new money transfer business needs.
Speak to an expert: WhatsApp +44 7563 115980, Telegram @buckinghamcapital or info@buckinghamcapitalconsulting.co.uk.
This article is general information, reviewed against the regulator’s published requirements on the date shown. It is not legal advice; the regulator’s current publications take precedence.