{"id":5182,"date":"2021-05-26T18:10:27","date_gmt":"2021-05-27T00:10:27","guid":{"rendered":"https:\/\/www.paymentfacilitator.com\/?p=5182"},"modified":"2022-12-05T11:31:29","modified_gmt":"2022-12-05T18:31:29","slug":"state-regulators-seek-comments-on-proposal-for-uniform-nationwide-msb-license-requirements","status":"publish","type":"post","link":"http:\/\/infinicept.com\/payment-facilitator\/news\/state-regulators-seek-comments-on-proposal-for-uniform-nationwide-msb-license-requirements\/","title":{"rendered":"State Regulators Seek Comments on Proposal for Uniform Nationwide MSB License Requirements"},"content":{"rendered":"\n

The <\/strong>Conference of State Bank Supervisors<\/strong><\/a> (CSBS) is asking for public comment on new proposed nationwide licensing requirements for money service businesses, including money transmitters.<\/strong><\/p>\n\n\n\n

Currently, requirements for money transmitter<\/a> licenses vary by state, creating a complex system for applicants to navigate. The standards are the latest effort on the part of state regulators to maintain control over licensing these types of businesses while attempting to modernize and streamline the existing system.<\/p>\n\n\n\n

The organization is proposing a set of nationwide requirements, limiting any remaining state-specific requirements to items not covered by the national ones. <\/p>\n\n\n\n

\u201cThe 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,\u201d CSBS President and CEO John W. Ryan said in a press release<\/a>. <\/p>\n\n\n\n

Many payment facilitators considering obtaining money transmitter licenses are early-stage companies with limited resources, according to Rob Ayers, CEO of Fintech Advisors<\/a>, who helps businesses navigate the state licensing process.<\/p>\n\n\n\n

For them, the licenses may not be worth the effort, leading them to explore other options. However, Ayers described a set of uniform standards as a \u201cmajor step\u201d in the ongoing effort by state regulators that could make licensing accessible for more companies.<\/p>\n\n\n\n

A set of common standards would result in more efficiency and cost savings for applicants, he said. It would reduce the redundancies of multiple applications and avoid the disruptions caused by information requests from multiple state regulators.<\/p>\n\n\n\n

\u201cIf they can hammer out the big points, it will probably allow more legitimate companies to participate in the process,\u201d Ayers said.<\/p>\n\n\n\n

Previously, CSBS has announced other steps toward more uniformity, such as the program<\/a> it introduced last year that allows certain payments companies to undergo a single comprehensive exam to satisfy all state exam requirements.<\/p>\n\n\n\n

\u201cCreating a standardized licensing process will improve supervision for both industry and regulators,\u201d Ryan said in this week\u2019s announcement.<\/p>\n\n\n\n

\u201cIndustry input is critical for this effort and for ensuring that the system remains responsive to the wide range of business models under state supervision.\u201d <\/p>\n\n\n\n

As that input filters in over the coming weeks, the success of this effort will depend on the ability of states to set aside differences on the details, Ayers noted.<\/p>\n\n\n\n

\u201cThe biggest challenge is the ability of the various entities to compromise on a program that won\u2019t be perfect but is acceptable to the individual states,\u201d Ayers said.<\/p>\n\n\n\n

Doing so would be good for all the players involved, he said.<\/p>\n\n\n\n

\u201cIt\u2019s about consumer protection and guarding against terrorist activity,\u201d Ayers said of the licensing process. \u201cHopefully, there\u2019s some widespread enthusiasm for it because, at the end of the day, it\u2019s good for business.\u201d<\/p>\n\n\n\n

CSBS is accepting public comments until July 23.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Conference of State Bank Supervisors is asking for public comment on new proposed nationwide licensing requirements for money service businesses, including money transmitters.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1014],"tags":[],"class_list":["post-5182","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/5182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/comments?post=5182"}],"version-history":[{"count":2,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/5182\/revisions"}],"predecessor-version":[{"id":8030,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/5182\/revisions\/8030"}],"wp:attachment":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/media?parent=5182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/categories?post=5182"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/tags?post=5182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}