Banking Requirements
At compliant MSB we can help you with your requirements.
To operate a compliant Money Services Business (MSB), you must maintain a strict dual-account structure that separates your company’s wealth from your customers’ money. The Operational Account functions as the heartbeat of your business, used exclusively for corporate expenses such as salaries, rent, and technology overheads. Conversely, the Safeguarding Account acts as a protected vault for “relevant funds,” ensuring that 100% of client capital is ring-fenced and legally insulated from the company’s own liabilities or potential insolvency.
Securing these accounts requires a “Bank Readiness” framework centered on a robust Anti-Money Laundering (AML) program and transparent corporate governance. Banks demand evidence of active regulatory licensing, a designated Compliance Officer, and advanced transaction monitoring systems to mitigate financial crime risks. Furthermore, you must provide a detailed “Flow of Funds” map and undergo independent third-party audits to prove that your internal controls effectively manage the high-risk nature of cross-border remittances and digital payments.
What is an operational account, and who needs it
An operational account is a business’s primary bank account used to manage its own day-to-day finances and corporate expenses. Unlike a safeguarding account, which is strictly for holding “client money,” the operational account holds the firm’s own capital. It is used to pay for overheads such as employee salaries, office rent, marketing costs, and vendor invoices. In a regulated financial environment, keeping a clear “firewall” between this account and client funds is a fundamental compliance requirement; any mixing of these funds—known as commingling—is a serious regulatory breach that can lead to the loss of a business license.
What is safeguarding, and who needs it
A safeguarding bank account is a regulatory necessity for any non-bank financial institution—such as payment processors, e-money issuers, or money transfer operators—that handles “relevant funds” on behalf of its customers. The primary objective is to legally segregate client money from the firm’s own operational capital, ensuring that these funds remain protected and can be returned to customers in full even if the business becomes insolvent.
How can I get a bank account?
Criteria for approval vary depending on the account’s purpose and the operator.
Example:
– A minimum turnover level
– A minimum monthly commitment in fees,
– A minimum number of years of operation
How long does it take to open a bank account?
The process shouldn’t take any longer than a few weeks to open a bank, with some opening in a few days. The time would very depending on the use, operational or safeguarding.
What makes us different?
We have a wide range of banking contacts that enable us to help you get the right account faster. Skip the long-winded research. We can assist and point you to operational and safeguarding accounts.
