The Conference of State Bank Supervisors (CSBS) is looking for public input on proposed nationwide licensing requirements for money service businesses (MSB).
“The goal of the proposal is a national standard that allows the state system to operate as a single network while retaining local accountability and local control,” CSBS President and CEO John Ryan said.
The structure that has been proposed is based on a set of nationwide requirements reviewed by a lead state agency. The national standards for MSBs include both core requirements for all applicants in all industries as well as MSB industry-specific requirements included in this proposal. Any state-specific requirements would be limited to items not covered by the national standards.
Specifically, the proposal includes an overview of MSB business-specific requirements and how they apply to companies, key individuals, and business locations. It also includes changes to the license application process for the MSB industry. The new requirements are designed to streamline the licensing process.
“Creating a standardized licensing process will improve supervision for both industry and regulators,” Ryan said. “Industry input is critical for this effort and for ensuring that the system remains responsive to the wide range of business models under state supervision.”
This proposal builds on the Multistate MSB Licensing Agreement, which currently includes 29 states. As of the end of April, 49 state agencies were using NMLS to manage MSB licenses for over 2,800 companies. MSB activities include electronic money transmission, check cashing, bill paying, and more.
The full proposal can be found on the NMLS website. Public comments on the proposal can be emailed to firstname.lastname@example.org until July 23.
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