# What is a money services business license? *Reviewed 2026-05-15* ## Short answer A money services business, or MSB, is a company that transmits money or provides services like currency exchange, check cashing, or prepaid access. MSBs register federally with FinCEN and, in most states, also need a state money transmitter license. The federal registration and the state license are separate requirements. The term money services business comes from federal law. A company that meets the MSB definition registers with the Financial Crimes Enforcement Network (FinCEN) and maintains an anti-money-laundering program. That federal step is not a license; it is a registration. On top of it, most states require a money transmitter license before the company can move customer funds for residents of that state. So a typical money-services company carries two layers: federal FinCEN registration and a state money transmitter license in each state where it operates. The state licenses usually come with surety bonds, minimum net worth, and ongoing reporting. Crypto and fintech payment companies frequently fall into this framework. Confirm both the federal and state requirements for your specific activities. ## Related - [Money transmitter licensing](/services) - [Money transmitter laws by state](/state-laws) - [Talk with our team](/contact)