Where Are the MSB Friendly Banks?

Where Are the MSB Friendly Banks?

August 29, 2016

MSB Friendly Banks Are Far and Few Between

Learn How National Check and Currency helps MSBs secure reliable banking partners

MSB friendly banks are increasingly hard to find in the face of ever-changing compliance regulation. National Check and Currency bridges the gap and provides their MSB clients with redundant banking partners. With NCC, money service businesses enjoy MSB bank accounts and services that keep them up and running, even in the face of constantly developing regulations.

To meet the demands of their growing client list, NCC recently hired former Federal Agent Mark Ochab as the new Director of Banking. In this role, Mark is steadily recruiting new banks and building a base of reliable banking partners and MSB financial services.  Mark’s extensive hands-on experience and his strong commitment to compliance, efficiency, and innovation gives NCC an advantage and helps attract MSB friendly banks.

As new regulations and rules are handed down from FinCEN, NCC is staying ahead of the curve. When POS identification systems emerged as a new technology, NCC helped its clients adopt and implement these systems well before they became mandatory. Specifically, in January 2015, NCC recognized the need for POS identification systems with Remote Capture software. These systems allow an MSB to collect  critical data on a person cashing a check: government issued photo ID,  POS photo, thumbprint, phone number, check imagery and more.

By collecting this data and instantaneously sending it to the bank, POS systems strengthen banking relationships through compliance and transparency.  NCC recognized this opportunity and helped their clients implement their POS systems before State and Federal mandates required them.  The ability to predict and implement compliance standards ahead of schedule is the hallmark of the NCC approach to MSB banking.

Why Are MSB friendly banks hard to find?

The reason National Check and Currency offers redundant banking relationships

As a money service business owner, you are familiar with the MSB friendly banking predicament. Ever-changing compliance standards and strict regulations keep both MSBs and their banking partners on their toes. Many banks have simply decided against working with MSBs due to increasing regulations and perceived risk. In this situation, both the debanked MSB and the bank are losing out on a profitable and amicable relationship.

One of the biggest MSB compliance issues for both banks and the MSBs they serve remains point-of-sale (POS) customer identification. Banks need quick and clear communication from the MSB for every transaction in order to stay compliant and confident in their working relationships. Using point-of-sale (POS) identification technology is one way that MSBs can stay compliant and transparently communicate crucial information to their bank. NCC’s forward-looking approach takes the guesswork out of compliance.  

If you are ready to put your search for MSB friendly banks behind you, then it is time to take the bull by the horns. As an MSB, you can make your business a more attractive banking candidate by adhering to the latest regulations and implementing your own compliance systems.

By choosing NCC, your money service business will have a partner to help you navigate regulation and stay compliant to avoid costly interruptions as the result of bank discontinuity.  As a client of NCC, you will enjoy the following benefits of a redundant and compliant MSB banking relationship:

  1. Reliability and ability to operate without interruption
  2. Accelerated rotation of your working capital
  3. Lower cost for lines of credit
  4. Increased control over daily operations
  5. Improved efficiency

Background on MSB friendly banking

The regulations and trends that make MSB friendly banks so hard to find

MSBs play a vital role in the non-traditional financial sector. Check cashers and Money Service Businesses offer solutions for people who do not have access, geographically or financially, to traditional banks. Offering MSB banking solutions is a lucrative opportunity for banks, and yet, they continue to cut ties with their MSB clients.

These are the top 3 regulations affecting MSB friendly banking:

  1. The Bank Secrecy Act of and it’s Anti-Money Laundering (AML) regulations
  2. Lingering effects of Operation Choke Point
  3. Know Your Customer (KYC) identification requirements

Many industry experts point to “Operation Choke Point” and FinCEN’s list of risky businesses as the end of MSB friendly banks. This list caused many banks to cut their ties with money service businesses in an attempt to shed their perceived risk. Even though FinCEN has since overturned “Operation Choke Point” and retracted their list, the effects linger.

National Check and Currency works tirelessly to combat the aftermath of “Operation Choke Point” and keep your MSB banked, so that you can stay up and running. We are honored to support you as you serve your community and provide convenient financial services. Learn more about our process and apply for your MSB bank account today.

Get The MSB Insider

Want The MSB Insider sent to your Inbox?

Other Articles

Available 24/7

Our first priority is to keep our customers banked and processing items. Our partnership with multiple MSB-friendly Financial Institutions allows us to meet that goal. If you have questions about establishing a new MSB bank account relationship, or would like help with your current account, please feel free to either e-mail or call us. 24 hours a day. 7 days a week

The MSB Insider

Money Service Business Banks & Regulators Enter Multi-State Contract

Money service business banks and state regulators are forging ahead with a multi-state licensing process for MSBs. The new agreement will standardize core parts of the money service business licensing process. This is just one of the ...(read full article)

  • *Email:

What is The MSB Insider?

Each month, we take a close look at the MSB industry and provide insider access to events, interview with industry leaders, and so much more. This is a free service and you can unsubscribe at any time.

Copyright © 2017 National Check & Currency. All Rights Reserved

Client Login

Forgot Your Password?

Reset Your Password

Login