A money services business (MSB) is a business that moves or exchanges value for customers: money transmission and remittance, currency exchange, cheque cashing, money orders and traveller's cheques, prepaid access and, in most regimes now, dealing in virtual currency. The term is used in law in the United States and Canada. The United Kingdom regulates the same activities under different names.
The vocabulary differs by country, and the difference matters. A US or Canadian "MSB licence" is in law a registration with the national financial intelligence unit, which confirms the business is subject to anti-money laundering rules but does not approve it. Permission to transmit money comes from a state licence in the US, from FCA authorisation in the UK, and from FINTRAC registration together with any provincial licence and Bank of Canada registration in Canada.
| Term | Where it is used | What it means |
|---|---|---|
| Registration | US federal (FinCEN); Canada (FINTRAC) | Entry on a national register for anti-money laundering purposes |
| Licence | US states | Permission to transmit money with customers in that state |
| Authorisation | United Kingdom (FCA) | Permission to provide payment or e-money services |
The US has two layers. Every MSB registers with the Financial Crimes Enforcement Network (FinCEN) on Form 107 through the BSA E-Filing System within 180 days of being established. Registration is free, is renewed every two years and appears on FinCEN's public MSB Registrant Search within about two weeks of an electronic filing. Our FinCEN MSB registration guide covers the filing step by step.
Money transmission also needs a licence from each state where the business serves customers. Forty-nine states and the District of Columbia license it; Montana has no general licensing law. Each state sets its own application fee, surety bond and minimum net worth, and most states file through the Nationwide Multistate Licensing System (NMLS). Transmitting money without a required state licence is a federal offence under 18 U.S.C. section 1960, whatever the FinCEN status.
The Conference of State Bank Supervisors reports that 31 states have enacted the Money Transmission Modernization Act (MTMA) in full or in part, giving them a common standard: tangible net worth of at least $100,000 and a surety bond of $100,000 to $500,000 per state. Massachusetts and Illinois brought their MTMA laws into effect on 1 January 2026 and Virginia on 1 July 2026. Our state-by-state money transmitter guide sets out each state's regulator and the verified fees.
In Canada, a money services business registers with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the national financial intelligence unit, before it begins to operate. FINTRAC charges no registration fee. Registration is valid for two years and is renewed before it expires, and changes to the registered information are reported to FINTRAC within 30 days.
The application includes criminal record checks, issued no more than six months before submission, for the chief executive, president, directors and anyone owning or controlling 20% or more. FINTRAC states that it processes most complete applications within three months.
Payment service providers within the Retail Payment Activities Act register separately with the Bank of Canada. Since 8 September 2025, registered providers have operated under risk management and funds safeguarding frameworks and file annual reports. Many MSBs that hold customer funds need both registrations. Our Canada MSB application guide covers both.
The UK has no MSB licence. A business that transmits money or issues e-money needs permission from the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017 or the Electronic Money Regulations 2011. The permission depends on the model and its scale:
| Permission | Suits | FCA application fee |
|---|---|---|
| Small payment institution (SPI) registration | Money remittance and payment services within the small-firm volume limit | £1,130 |
| Authorised payment institution (API) | Payment services at any scale, with EU-style capital of €20,000 to €125,000 | £2,820 or £5,640 depending on services |
| Small electronic money institution | E-money issuance within the small-firm limits | £1,130 |
| Authorised electronic money institution (EMI) | E-money issuance at any scale, with initial capital of €350,000 | £5,640 |
| Cryptoasset registration | Crypto exchange and custodian wallet services under the Money Laundering Regulations | £11,260 |
The FCA's service standard is a decision within three months for a complete authorisation application. The firm plans EMI and API authorisations at six to eight months after submission and SPI registrations at a few months. Our comparison of UK payment licence types explains how to choose between them.
Bureaux de change, cheque cashers and money transmitters also register with HM Revenue and Customs (HMRC) for anti-money laundering supervision unless the FCA already supervises them for money laundering purposes. HMRC charges a one-off £300 registration fee, £400 for each premises and £500 for each person who takes the fit and proper test. A business that applied after 10 January 2020 may not trade until HMRC confirms the registration.
The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 create a full FCA authorisation regime for cryptoasset activities. The FCA application window opened on 30 September 2026 and runs to 28 February 2027, and the regime commences on 25 October 2027. Until then, the existing Money Laundering Regulations registration applies.
The tables below compare the three countries on the points businesses ask about most.
| Country | Regulator | Permission |
|---|---|---|
| United States (federal) | FinCEN | MSB registration |
| United States (state) | Each state regulator, via NMLS | Money transmitter licence |
| Canada | FINTRAC; Bank of Canada for payment service providers | MSB or foreign MSB registration; RPAA registration |
| United Kingdom | FCA; HMRC for money laundering supervision | API, SPI, EMI or small EMI; HMRC MSB registration |
| Country | Government fee | Renewal |
|---|---|---|
| United States (federal) | None | Every two years |
| United States (state) | From $375 (Florida) to $10,000 (Texas) among the largest states | Usually annually |
| Canada (FINTRAC) | None | Every two years |
| United Kingdom (FCA) | £1,130 to £5,640 depending on permission | No renewal; annual FCA fees apply |
| Country | Register |
|---|---|
| United States (federal) | FinCEN MSB Registrant Search |
| United States (state) | NMLS Consumer Access |
| Canada | FINTRAC MSB Registry; Bank of Canada PSP registry |
| United Kingdom | FCA Financial Services Register |
Government fees are the smallest part of the cost. FinCEN and FINTRAC charge nothing, and the FCA and HMRC fees are fixed and modest. The real costs are in three places:
A single FINTRAC registration is the lightest of these regimes. A multistate US licensing programme is the heaviest, because bonds and net worth multiply with each state.
Each regime publishes a free public register. Searching the right one, by the right name, confirms whether a business holds the registration or licence it claims.
The FinCEN MSB Registrant Search lists federal registrations by legal name, trading name and state. FinCEN updates it weekly and adds electronic filings within about two weeks. State licences appear on NMLS Consumer Access, which shows each licence, its status and the company's NMLS unique identifier. A listing on the FinCEN search shows registration only; it is not evidence of a state licence.
The FINTRAC MSB Registry is searchable by legal name, operating name or registration number and shows the status of each registration: registered, ceased, expired or revoked. FINTRAC also publishes the registry as a dataset. Retail payment providers appear separately on the Bank of Canada's registry.
The FCA Financial Services Register shows authorised and registered payment institutions, EMIs and cryptoasset firms, with their permissions and reference numbers. HMRC publishes a register of businesses it supervises under the Money Laundering Regulations.
Registers update periodically. Where a contract, onboarding decision or transaction depends on the answer, the regulator's register on the day is the source to rely on.
There is no universal MSB number. FinCEN issues a registration number to each registered MSB. FINTRAC issues its own registration number to Canadian MSBs and foreign MSBs. Each US state licence is tied to the company's NMLS unique identifier, and the FCA gives each firm a firm reference number.
An international group can therefore hold several identifiers at once. Banks and partners match each identifier to the register that issued it and to the entity that holds it.
The three regimes ask for different forms, but they test the same things: who owns and runs the business, what it does with customer money, and whether its controls match its risks.
A single, well-evidenced compliance programme, adapted to each country's rules, serves all of them. It is also what banks and payment partners ask for at onboarding.
The route follows the customers. A business serving US customers registers with FinCEN and licenses the states where its customers are. A business serving Canadian customers registers with FINTRAC, as an MSB or a foreign MSB, and assesses Bank of Canada and provincial requirements. A business serving UK customers needs FCA permission and, for money transmission, HMRC registration unless the FCA supervises it for money laundering.
Many international payment firms start with one jurisdiction and add others. A UK-authorised payment institution entering North America typically registers with FINTRAC as a foreign MSB first, because it is fast and free, and runs the longer US state programme in parallel. Our Canada MSB registration page sets out how the firm runs FINTRAC filings.
No. Money transmitters need FCA authorisation or registration as a payment institution or e-money institution, and HMRC registration for money laundering supervision unless the FCA supervises them for it.
No. In the US, MSB registration is the free federal FinCEN filing; the money transmitter licence is the state permission that authorises transmission, and a compliant business holds both.
FinCEN and FINTRAC charge no fee. US state licences cost $375 to $10,000 per state in fees plus bonds and net worth, and UK FCA fees run from £1,130 to £5,640.
Search the FinCEN MSB Registrant Search for US federal registration, NMLS Consumer Access for state licences, the FINTRAC MSB Registry for Canada and the FCA Register for the UK.
FinCEN lists electronic filings within about two weeks. FINTRAC processes most complete applications within three months, and the FCA decides complete authorisation applications within three months.
Yes, if it directs MSB services at people in Canada and serves Canadian clients. It registers as a foreign MSB and appoints a representative resident in Canada.
There is no universal number. FinCEN and FINTRAC each issue their own, US state licences use the NMLS unique identifier and UK firms have an FCA firm reference number.
Buckingham Capital Consulting has prepared money services registrations and payment licences since 2013, including FINTRAC MSB and foreign MSB registrations, FinCEN registrations and US state licensing, and has obtained FCA authorisations for firms including Nexpay, Orbital, Global Send and Onpoint Money. Each engagement includes the anti-money laundering programme the regulator expects.
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.