Banking Challenges Faced by MSBs (And Solutions)

Money Services Businesses (MSBs) play a key role in payments, remittance, and crypto-related services. But one of their biggest struggles is simple: banking access. Many MSBs find it harder to open and maintain bank accounts than other businesses.
Here are the main challenges — and practical solutions.

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1. High-Risk Label

Banks often see MSBs as high-risk because of money laundering concerns and cross-border transactions. This can lead to account rejections or sudden closures.
Solution:
Maintain strong AML and KYC systems, clear transaction monitoring, and proper documentation to show your risk controls are serious and structured.

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2. Strict Compliance Checks

Banks perform deep reviews before onboarding MSBs, asking for policies, licenses, business models, and customer types.
Solution:
Prepare a full compliance package in advance — including AML policies, risk assessments, and proof of regulatory registration where required.

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3. Cross-Border Transaction Concerns

International payments increase regulatory risk for banks, making them cautious with MSBs that operate globally.
Solution:
Be transparent about your corridors, partners, and transaction flows. Clear reporting and monitoring tools help build trust with banking partners.

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4. Limited Banking Options

Not all banks work with MSBs, which reduces choices and can lead to dependency on a single provider.
Solution:
Work on building relationships with multiple banks and payment institutions to avoid relying on just one partner.

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5. Ongoing Monitoring Pressure

Even after opening an account, MSBs often face frequent reviews and information requests.
Solution:
Keep records updated, respond quickly to bank queries, and maintain continuous compliance — not just during onboarding.

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Final Thought

For MSBs, banking is not just an operational need — it’s a compliance challenge. Strong internal controls, transparency, and expert regulatory support make it easier to build stable banking relationships.
Professional guidance for MSB setup, compliance structuring, and financial business support is available at 7baas:
https://7baas.com/
https://7baas.com/services/

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