What is Money Service Business (MSB)?

Money service business (MSB) is a legal term used to describe any company that transmits or converts money, cashes checks, carries out foreign currency exchange, facilitates payments and remittance services, and other related services. Larger global MSBs include PayPal, Western Union, MoneyGram, Revolut, and TransferWise, among others. MSBs have strict regulatory and compliance guidelines they must adhere to, including Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to avoid potential fraud, theft, and misuse of funds by malicious actors. MSBs provide services similar to banks and must hold a valid money transfer license.