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:
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.
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.
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:
