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Money Service Business KYC: FinCEN, FCA & Local Licensing Rules

MSBs face dual regulation: the licensing regime and the AML regime. This guide maps both for 2026.

8 min read

Money service businesses and money transmitters sit at the intersection of payment regulation and AML law. In most jurisdictions they need both a licence and a compliance programme, and the KYC requirements are stricter than general retail.

US: FinCEN and state MSB rules

FinCEN requires MSBs to register, implement an AML programme, and verify customers under the BSA. State-level money transmitter licences add additional KYC and net-worth requirements.

UK and EU

The FCA and national AML regulators require MSBs to apply risk-based KYC, including enhanced due diligence for high-risk customers and corridors. Thresholds vary by member state.

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