Remittance Business Hub
Plain-language guides for providers, agents, exchange houses and fintechs. Start here, then confirm every requirement with your regulator.
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See our servicesLicensing overview by region
Rules differ by country and change often. This is a starting map, not legal advice. Always read the regulator's own guidance.
United Kingdom
Payment services are regulated by the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017. Firms may need FCA authorisation or registration, and anti-money-laundering supervision may sit with the FCA or HMRC depending on your authorisation. Confirm which applies.
United States
Money services businesses register with FinCEN and follow the Bank Secrecy Act. Most states also require a money transmitter licence, with different rules, fees and bonding in each state.
European Union
Payment institutions are authorised by a national competent authority under PSD2, and can often offer services in other member states through passporting. Requirements include capital, safeguarding and governance.
Canada
Money services businesses register with FINTRAC and must keep a compliance programme, report certain transactions and keep records.
United Arab Emirates
The Central Bank of the UAE licenses and supervises exchange houses and payment service providers. Free zones may have their own additional rules.
Pakistan
The State Bank of Pakistan regulates exchange companies and payment system operators and providers, and sets rules for inward remittance channels.
Regulators change rules regularly. Check the official website of the relevant authority before you act, and take advice from a qualified lawyer.
KYC and AML basics
Anti-money-laundering (AML) and counter-terrorist-financing (CFT) rules expect every remittance business to know its customers and watch for misuse. Most programmes share these building blocks:
- Risk assessment. A written business-wide assessment of your customers, countries, products and delivery channels.
- Customer identification and verification (KYC). Collect and verify identity before you transact. For businesses (KYB), also identify the beneficial owners.
- Customer due diligence (CDD) and enhanced due diligence (EDD). Apply deeper checks to higher-risk customers, such as politically exposed persons (PEPs) or high-risk countries.
- Sanctions and PEP screening. Screen customers and payment parties against current lists, at onboarding and on an ongoing basis.
- Transaction monitoring. Set rules to spot unusual patterns such as structuring, rapid repeat sends or mismatches with a customer's profile.
- Suspicious activity reporting (SAR/STR). Train staff to escalate concerns, and file reports with the national financial intelligence unit when required.
- Record keeping. Keep customer and transaction records for the period your rules require, often five years or more.
- Governance and training. Appoint a responsible compliance officer, write policies and procedures, train staff and review the programme regularly.
Many jurisdictions also follow the FATF Recommendations, including rules on sending originator and beneficiary information with wire transfers.
How to become a money transfer agent
- Choose a principal. Agents work under a licensed provider. Compare commission, settlement terms, payout coverage and support.
- Check that the provider is licensed in the country where you will operate, using the regulator's public register.
- Prepare your business. Expect to provide company documents, ID for owners, premises details and sometimes a bank reference.
- Complete due diligence and training. Principals must vet and train their agents on KYC, AML and fraud.
- Understand the money flow. Learn settlement times, limits, float requirements and how disputes and refunds work.
- Set up compliant operations. Customer ID checks, receipts, record keeping, and a clear process to escalate suspicious activity.
- Read the agreement carefully, especially liability, exclusivity and termination, and get legal advice before you sign.
Payment rails and payout methods
Bank transfer
Funds move through correspondent banking or local schemes. It is reliable for larger amounts, though it can be slower and add intermediary fees.
Local instant systems
Domestic real-time schemes, such as Faster Payments in the UK, SEPA Instant in Europe and Raast in Pakistan, let a provider pay out within seconds once funds reach the destination country.
Mobile wallets
Wallets such as bKash in Bangladesh, GCash in the Philippines and M-Pesa in Kenya reach people who have no bank account. Check which wallets your partner supports.
Cash pickup
Recipients collect cash at an agent location. It reaches the widest audience but depends on agent liquidity and strong ID checks.
Cards and APIs
Card payouts and cross-border payment APIs let fintechs plug into many corridors at once. Check licensing, coverage and pricing for each.
Consulting services
Need help turning these guides into documents and controls? We support remittance and fintech businesses with the work below. See full details or browse our portfolio.
Documentation services
Complete, regulator-ready document sets written for your business.
Policy development for fintech
Clear policies and frameworks for payment, remittance and fintech firms.
Drafting
Business documents drafted, structured and ready for your lawyer's review.
Market research
Evidence you can use to choose corridors, partners and pricing.
Compliance review and audit support
Find the gaps before a regulator or partner does.
Process and control improvement
Make operations faster, safer and easier to evidence.
Registration and regulatory support
Documentation to support registration and licensing applications.
Training
Practical training your staff and agents will actually use.
Growth and partnerships
Commercial strategy for remittance and payment businesses.
Tell us about your project.
View services and contact usProvider and vendor directory
We are building a directory of remittance providers, payout partners and compliance vendors. Listings are not currently open. If you would like to be considered, email contact@remitinsights.com. Any paid or sponsored listing will be clearly labelled, and it will never change our independent guides.
Glossary
Anti-money-laundering and counter-terrorist-financing controls.
Know your customer, and know your business. Verifying who a person or company is.
Customer due diligence, and enhanced due diligence for higher-risk customers.
Politically exposed person. Someone with a prominent public role who may present higher risk.
Suspicious activity report, or suspicious transaction report, sent to the authorities.
Money services business, such as a money transmitter or currency exchange.
A route between a sending and a receiving country.
The midpoint between currency buy and sell prices, used as a fair benchmark.
The firm in the receiving country that delivers funds to the recipient.
Funds an agent or provider holds in advance to pay out transactions.
Offering regulated services in other countries on the strength of one authorisation.
The requirement to pass originator and beneficiary details along with a transfer.