Money Transmitter License Solutions from US to Africa

Dilendorf Law Firm assists clients with obtainining Money Transmitter Licenses (MTLs) to facilitate remittances flows between the U.S. and African Countries. We provide turn-key MTL solutions for launching cross-border remittance platforms and payment systems for fiat and cryptocurrencies.

Our experienced FinTech lawyers regularly represent and consult companies in connection with obtaining MTL licenses for fiat and crypto to provide remittance services to Sudan, Senegal, Cameroon, Nigeria, Kenya, Zimbabwe, Sudan, and other regions in Sub-Saharan Africa.

Since 2010, sub-Saharan African countries accounted for eight of the 10 fastest growing immigrant populations in the United States.  Approximately 2.1 million sub-Saharan African immigrants resided in the United States in 2019, representing 5 percent of the total foreign-born population of 44.9 million. For example, Kenya alone receives over $1 billion annually in remittances from the United States.

We are familiar with the federal and state regulatory nuts and bolts of successfully launching remittance flows from the United States to sub-Saharan Africa regions. Reliable payments rails play an essential role in many sub-Saharan African economies.

Helping Clients Navigate Through MTL Requirements and Challenges

With limited exceptions, any business that accepts and transmits fiat or digital assets will be considered an MSB and require an MTL in each U.S. state where the company operates.

Money transmitters are a part of a broader category of MSBs. So, the terms MTL and MSB are related and often used together.

While registration on the federal level is relatively straightforward, the MSB legislation is not harmonized, and almost all 53 states and territories have their own regulations, requirements, and exceptions for money transmitter licensure.

MTL requirements vary state-by-state but usually include registration with the Financial Crimes Enforcement Network (FinCEN), background checks, application fees, security (the surety bond), maintenance of permissible investments, minimum net worth, and business plan and a compliance program.

When obtaining MTLs, a business may choose to prioritize some states and apply first there but will be prohibited from operating in the states where it does not maintain an MTL.

We strive to understand our client’s background, goals and other critical factors when advising clients on the best BSA/AML & MTL strategies for setting up remittance services between the U.S. and African Countries.

Guiding Clients Through MTL Application Procedures in Every State

Our lawyers advise and assist clients throughout the MTL application process, including the following steps:

• Developing an MTL strategy nationwide for companies engaging in remittance activities (fiat + crypto) between U.S. and Africa;
• Selecting and establishing optimal corporate and tax business structures supporting U.S. and cross-border payments and remittances;
• Assisting clients with opening bank accounts to power remittance platforms;
• Preparing a business plan, a summary of historical and current operations, financial statements, affidavits, and other required documentation;
• Submitting applications in individual states;
• Acquiring mandatory surety bonds;
• Completing FinCEN registration;
• Accomplishing necessary corporate actions, including local qualification of out-of-state companies, provision of registered agents, drafting/amending corporate governance documents;
• Developing anti-money-laundering (AML) and other compliance programs;
• Representing clients in communications with the federal and state agencies; and
• Maintaining and renewing MTLs.

Resources:

• Africa Leads the Way on Re-imagining Remittance Regulations
• Remittances from Sub-Saharan African Migrants Pay for Schooling, Health Care
• AfDB Supports the Africa Remittances and Money Transfer Markets Forum
• Sub-Saharan African Immigrants in the United States
• Bureau of African Affairs – US Department of State
• Migrant’s Remittances and Related Economic Flows
• United States and Kenya: Strategic Partners

Federal

• 50-State Survey: Money Transmitter Licensing Requirements
• Definition of Money Transmitter (Merchant Payment Processor) – FinCEN
• Enforcement Actions for Failure to Register as a Money Services Business – FinCEN
• FinCEN Guidance, FIN-2019-G001 – FinCEN
• Money Services Business (MSB) Registration – FinCEN
• FAQs: Virtual Currency Business | Department of Financial Services
• Treasury’s Work to Support Money Transmitters
• State of State Money Services Business Regulation & Supervision