Banks for MSBs

Why Banking Is the #1 MSB Challenge

Since 2013, thousands of money services businesses have lost their bank accounts due to de-risking — a practice where banks exit entire categories of customers rather than manage them individually. The result has been an ongoing crisis in the MSB industry, forcing operators to search constantly for banking partners willing to serve their businesses.

Not all banks have abandoned the MSB sector. A number of financial institutions have developed specialized MSB banking programs with dedicated compliance teams, tailored account structures, and an understanding of the regulatory requirements unique to money services businesses.

What to Look for in an MSB-Friendly Bank

• ✓ Dedicated MSB banking team — A bank that understands your business should have staff specifically trained on MSB operations and compliance.
• ✓ Clear onboarding requirements — The bank should tell you exactly what documentation they need: state licenses, FinCEN registration, BSA/AML program, independent review, etc.
• ✓ Reasonable transaction monitoring — Banks should monitor MSB accounts proportionally, not punitively. Excessive holds and arbitrary closures are red flags.
• ✓ Multi-state capability — If you operate in multiple states, you need a bank comfortable with multi-state MSB licensing and varying regulatory requirements.
• ✓ Cash handling infrastructure — For cash-intensive MSBs, the bank should accommodate large cash deposits without treating every deposit as suspicious.

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