Money Services Business (MSB)
What is Money Services Business (MSB)?
A Money Services Business is a legal term used to describe businesses that transmit or convert money. This category includes currency exchanges, check cashers, and companies that issue or redeem money orders or traveler’s checks.
Why It Matters
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It subjects these businesses to specific anti-money laundering and counter-terrorist financing laws.
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It requires firms to register with regulatory bodies like FinCEN in the United States.
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It ensures that companies handling public funds have proper oversight and reporting mechanisms.
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It helps law enforcement track the flow of funds to prevent illegal financial activities.
