Better transaction visibility can aid in growing the size of MSB Friendly Banks

Transaction visibility (amongst others) is one of the elements cited by small and medium banks, in their derisking process of MSB (money services businesses) when it comes to providing them with MSB Friendly Banking services.

More and more regulators are urging banks to upgrade and adopt better technologies to enable them to have better visibility in transaction processing, so the seemingly risky businesses of money transfer who are in search of MSB Friendly Banks can indeed get access to banking.

A small, slightly tangential artcile to read on this subject how Regulators can help this epidemic is: REGULATORS URGE BANKS TO INNOVATE ON AML, PILOT PROGRAMS SHOULD BE ‘FREE FROM SUPERVISORY CRITICISM’

MSB Friendly Banks – How to go about finding one?

Here is a YouTube video I did on how to go about finding an MSB Friendly Bank.

More MSB Friendly Banks….

A colleague gave me this list. Though I cannot verify or confirm MSBs whom I know, who have an account in these banks, but I would defintiely trust the word of my colleague:

Credit Suisse
DZ Bank Germany
Aktif Bank Turkey
ING Netherlands
DNB Nor, Norway
BNY Mellon

MSB Friendly Banks… Wait! There is an alternative!

MSB Friendly Banks – well, sort of!

If you’ve been in the market for MSB Friendly Bank and have been disappointed for not being able to find any. Well, I might have a bit of good news for you.

Have you heard of Virtual IBANs? A virtual IBAN is like a pseudo bank account. It has all the things one needs, a Bank Account Number a Routing Number, etc.

IBANs are typically used outside of the United States. So if you’re looking for a Virtual IBAN, that is available in US Dollar, British Pound Sterling, and the Euro, this might be the solution you’re looking for.

Virtual IBANs are provided by something called a Payment Account. There is a small charge when you accept payment. Which is okay, considering someone is providing you with this service. A Virtual IBAN solution cannot take cash or cheques as a deposit. Everything coming into the account and going out is electronic.

You can do a SWIFT transfer to anywhere in the world and anyone from anywhere in the world can send money to your account.

Money Services Business who are looking for MSB Friendly Banks Account are welcome. So are crypto-coin businesses.

If you want to learn more about Virtual IBANs, click here.

US Dollar Correspondent Bank

As a money transfer company, obtaining US Dollar Correspondent Bank relation can be a bit of challenge. And that is putting it mildly.

The US Dollar remains one of the most preferred tradeable currency in the world. Nothing tops the Greenbacks!

Nothing tops the Greenbacks!

Trying to understand why correspondent banking has shut down for many can be challenging. There is a constant battle between the regulators and those that want US Dollar clearing. Reasons are many. From Compliance, to AML to CFT, etc.

A great brief read in the article by Financial World called: Correspondence Closed as Banks Post Changes. It does a great job at explaining why the whole Correspondence Bank relation is in a downward spiral and what is being done about it.

Worth a read.

MSB Friendly Banks – Are there any left?

As a Money Services Business (MSB), it is becoming extremely difficult to find an MSB Friendly Bank. One wonders how those in business, are still in business? Who are they banking with? How did they find an MSB friendly bank to work with?

The answer to all these questions is not that difficult. While it is true that a significant majority of the banks have derisked themselves from the MSB industry, there are still a few banks who continue to provide banking to various MSBs. How? The answer is compliance.

Most banks are not equipped to handle and spend a lot of time (months?) on evaluating the compliance program of an MSB and then finding the gaps and correcting them. This is why these banks rely on working with select compliance companies who are able to deliver a compliance report – that the banks is comfortable and acclimatized with. Think about it, as a small bank, do you really want to start fresh with 20 banks, or would you rather than these 20 banks adhere to a single template and you read that report to which you are accustomed to?

So a good starting point is to go to a known-name compliance company and get your compliance audit done. This will take 1-3 months and can definitely be worth your while for the money to pay. Banks, state examiners, partners, etc. all value a compliance report. Once you are armed with a compliance report, it is relatively easier to speak to those banks that are MSB Friendly Banks. Yes, it is still tough finding such banks, but it is doable.

I have started drawing a list of banks (that I do share with the public) that I know are MSB Friendly Banks:

MSB Friendly Banks: Europe

Philippine National Bank (PNB) Europe Plc
Raiffeisen Bank Intl Ag, Vienna, Austria
AO Raiffeisen Bank, Moscow, Russia
Raiffeisen Bank, Slovenia
Bank Meinl, Vienna, Austria
Baltikums Bank
Ceska Sporitelna, Czech Republic
CIMB Bank, Singapore
Bank of Communications, Hong Kong
DBS Bank Ltd, Hong Kong
Punjab National Bank, Hong Kong
Indian Overseas Bank, Hong Kong
LHV Pank (Estonia) (yes, they spell it Pank rather than Bank).
Atlas BankA, Montenegro http://www.atlasbanka.com/

MSB Friendly Banks: USA

Wilmington Savings Funds Society WSFS – https://www.wsfsbank.com
MB Financial Bank, Rosemont, IL, USA
Republic Bank of Chicago, Oak Brook, IL, USA
Unity Bank, Clinton, NJ, USA
Community Federal Savings Banks (CFSB), NY – https://www.cfsb.com/
Torrey Pines Bank (California)
Bank of the Internet (USA), part of Bank of Internet (Federal Bank)
Marlborough Savings Bank (https://agreatbank.com/)
MB Financial Bank, Rosemont, IL, USA
Republic Bank of Chicago, Oak Brook, IL, USA
Unity Bank, Clinton, NJ, USA
Rockland Trust Bank, https://www.rocklandtrust.com/, MA, USA
Stonegate Bank https://www.stonegatebank.com/
Cross River Bank (NJ), USA, https://www.crossriverbank.com/
Mission National Bank https://www.mnbsf.com/

MSB Friendly Banks: Canada

Buduchnist Credit Union http://www.buduchnist.com/
Vancity Saving Credit Union https://www.vancity.com/

Another important link is this: http://www.offshorebanksdirectory.com/en/offshore-banks/ (you can try contacting them, but this is a list of off-shore banks.

If you come across an MSB friendly bank, please don’t hesitate to let me know.