The US MSB (Money Services Business) license is a financial license supervised and issued by FinCEN (Financial Crimes Enforcement Network, a division of the US Department of the Treasury) to supervise businesses and companies related to money services, including cross-border remittances , foreign exchange, currency transactions/transfers (including digital currencies/virtual currencies), ICO issuance, providing prepaid items and issuing travellers’ checks, etc. Companies engaged in the above-mentioned related businesses in the United States must apply for an MSB license in order to conduct business legally.

Under FinCEN regulations and under the USA Patriot Act, MSBs are required to register with FinCEN and comply with many different recordkeeping, reporting and anti-money laundering requirements. Registration Requirements Under the Bank Secrecy Act (BSA), MSBs are required to register with FinCEN when setting up a financial services business. Registration is more than simply naming your company or paying a simple fee.

It involves providing FinCEN with a lot of very important information about the MSB, such as the type of business it is engaged in, the financial institutions and bank accounts through which transactions may be conducted, the ownership or control of the MSB, and the different branches it operates in the United States and /or the number of agents. Extra care should be taken throughout the registration process to ensure that all deadlines are met and that all information provided to FinCEN is accurate and does not require correction later.

We have extensive experience in applying for US MSB licenses, helping customers fulfill MSB business requirements and comply with relevant regulations, and tailor effective compliance plans based on your business needs.

NFA is the industry-wide self-regulatory organization for the U.S. derivatives industry. Designated by the CFTC as a registered futures association, NFA maintains the integrity of derivatives markets, protects investors and ensures members fulfill their regulatory responsibilities.

In 1974, the U.S. Congress established the Commodity Futures Trading Commission (CFTC). The same legislation also authorizes the establishment of registered futures associations, giving the industry the opportunity to establish a self-regulatory organization.

The U.S. Congress passed legislation in 2000 and 2008 requiring companies that serve as counterparties to retail foreign exchange transactions, as well as foreign exchange pool operators, trading advisors and introducing brokers to register with the CFTC and become members of the NFA. The Commodity Exchange Act (CEA) requires certain companies and individuals doing business in the derivatives industry to register with the CFTC. With rare exceptions, CFTC regulations also require CFTC-registered companies to be NFA members. The CFTC has delegated registration responsibilities to the NFA.

All futures professionals required to register with the CFTC can obtain registration only after a thorough background investigation has been conducted to determine whether they meet the suitability standards set forth in the CEA.

Registered Member:

Commodity Pool Operator (CPO)

An individual or organization that operates a commodity library and raises funds for the commodity library

Commodity Trading Advisor (CTA)

A person or organization who, for compensation or profit, directly or indirectly advises others on the value or desirability of trading futures contracts, futures options, retail OTC foreign exchange contracts or swaps

Futures Brokers (FCM)

An entity that solicits or accepts orders to buy or sell futures contracts, futures options, retail OTC foreign exchange contracts, or swaps, and that accepts customer funds or other assets in support of such orders

Introducing Broker (IB)

A person or organization that solicits or accepts orders to buy or sell futures contracts, foreign exchange, commodity options, or swaps but does not accept funds or other assets from customers to support those orders

The RIA license is a license that is regulated by the U.S. Securities and Exchange Commission (SEC) or state securities departments and is required by companies and individuals who specialize in investment consulting services. In the United States, only a registered investment advisor (RIA) is qualified to provide investors with investment analysis advice on securities products and provide regular investment reports. Only institutions that have obtained this qualification can charge corresponding management fees and assume entrustment responsibilities to customers.

Generally, fund managers of institutions applying for registration as investment advisors must pass the corresponding licensing examination, namely the investment advisor examination - Series 65. Most states in the United States also waive the Series 65 exam if the administrator of the institution holds a financial license such as a Certified Financial Analyst (CFA) or Personal Finance Specialist (PFS). In addition, the applicant institution must have an asset management scale of more than 25 million U.S. dollars. Companies with an asset management scale of 25 million to 100 million can register with the U.S. state securities department. Companies with assets exceeding 100 million must register with the SEC.

Not only institutions in the United States are eligible to apply for RIA licenses. According to SEC regulations, institutions whose main business address is abroad can also register with the SEC. However, if overseas investment consultants want to provide investment advice to U.S. clients, they "must" apply for an RIA license from the SEC.

What are the SEC’s regulatory requirements for RIAs?

The SEC requires registered investment advisers to safeguard the interests of their clients and not to use unfair means to deceive clients. We must not only maintain integrity to our clients, fully disclose information publicly, but also selflessly provide clients with investment advice that is suitable for them. The management of assets needs to be through a third-party custodian, and the use of each investment amount needs to be notified to the customer and approved. This “fiduciary duty” is an operational rule imposed on investment advisers in accordance with relevant acts, so the interests of clients who cooperate with registered investment advisers will be effectively protected.

In addition, the SEC will regularly conduct regulatory inspections of RIAs. It mainly focuses on the risk supervision of the valuation, performance and asset review of the investment portfolio; the legality supervision of whether effective compliance policies and procedures are provided; and the announcement of the notification of the inspection results.

Established in 2000, the Financial Transactions and Reports Analysis Center of Canada (FINTRAC) is Canada's Financial Intelligence Unit (FIU). It is an independent agency headquartered in Ottawa that assists in the detection, prevention and deterrence of money laundering and terrorist financing. FINTRAC’s financial intelligence and compliance functions are a unique contribution to the safety of Canadians and protecting the integrity of Canada’s financial system. Similar to the CFTC in the United States. FINTRAC accepts that financial institutions and intermediaries are mainly responsible for collecting, analyzing, evaluating and disclosing relevant information on Canada's financial industry to protect Canada's financial stability and security.

Financial services business scope

Foreign exchange transactions, transfer and remittance business, cashing or selling money orders, traveler's checks, etc.

Responsibilities and obligations of the money services industry

Money Services Businesses (MSBs) need to understand all obligations that apply to the business. This includes registering the business with FINTRAC, reporting to FINTRAC, record keeping, KYC and the development of compliance plans.

To apply for a Canadian MSB license, we need the following conditions:

monitoring condition

Canadian registered company.

Large legal address.

Domestic bank account.

Company contact number.

Background check by compliance officer or shareholder.

Have an appropriate business structure and company personnel have certain qualifications for digital currency issuance

Financial position is good.

At least 2 responsible persons, including 1 director and 1 compliance officer.

Documents required for Fintrac MSB license

Basic company information, tax number

Detailed personal information of the company’s shareholders and directors (ID card, passport, address proof, contact number)

Office address

Service type selection

Total Transaction Value: A list of MSB-issued financial products or services with a total transaction value of more than $100,000 in each individual month during the preceding 12 months.

Bank account information

Compliance specialist contact information

Branch

Why apply for Australian AFSL?

If you need to engage in the following businesses in Australia, the law requires you to apply for an Australian financial license:

1. A wide range of institutions working in the pension, insurance, deposit and loan industries;

2. Local banking financial institutions and international bank branches operating in Australia;

3. Financial trading institutions such as securities, futures, foreign exchange, and financial derivatives;

4. All institutions involved in financial product information consultation and services;

5. All financial industry practitioners must hold a certificate to work and engage in financial business in accordance with regulations.

Advantages of applying for Australian AFSL:

1. Complete government functions and independent management of financial markets

2. Comprehensive supervision system, paying equal attention to both supervision and management

3. Assist and protect retailers and customers in financial operations

4. Focus on protecting the rights and interests of investors and establishing an FOS dispute resolution agency

5. There are strict penalties for any violation of the law

6. More open and fair information release to ensure public interest

7. Improve service levels through new technologies and processes

According to regulations, any company involved in the following businesses must have AFSL qualifications:

1. Provide customers with advice on financial products.

2. Trading financial products.

3. Provide a market for financial products.

4. Operate a registered financial business.

6. Provide traditional trust company services.

When applying for Australian AFSL, you need to pay attention to the following information:

1. Apply as a company or as an individual;

2. All company registration information or personal identity information will be displayed on the financial services regulatory website;

3. If you are applying for an institution or organization, you need to pay attention to what type of institution it is, a trust institution, a fund, an association, an organization, etc.

(What kind of trust, what kind of fund, what kind of association);

4. Information 3’s name, address, website, members, structure, market, number, contact details, etc.;

5. Major categories of financial services that require authorization; respectively describe the business types, business nature, and specific business information (product and service list);

6. Financial services transaction volume, transaction objects, transaction methods, etc.;

7. Whether it is necessary to restrict the development areas of institutions and investors, and authorize them;

License application process:

1. Register an Australian company;

2. Assist clients in notarizing directors’ criminal records;

3. Write business plans and operation plans;

4. Prepare and write application materials;

5. Write anti-money laundering regulations and anti-terrorist organization financing regulations, as well as daily operation plans for the regulations;

6. Submit an application for a license to Australian ASIC;

7. During the application process, be responsible for answering questions raised by ASIC.

Effective from February 28, 2015, New Zealand's financial management regulations have changed. According to the Financial Market Conduct Act and its subsidiary regulations, derivatives providers must apply for a financial derivatives brand license from the Financial Markets Authority (FMA) if they need to provide derivatives services. (Derivatives Issuer).

Category 1: Financial Advisor

For many Chinese friends, financial consultants are the type of financial practitioners that they have more contact with.

A financial advisor is a person who provides advice on investments and other financial services and products as part of their job or business.

The second major category: Derivatives issuer (derivative brand photos)

Financial derivatives (derivatives) refer to a financial contract whose value depends on one or more underlying assets or indices. The basic types of contracts include forwards, futures, swaps (swaps) and options.

For ordinary investors, the most common financial derivatives include currency derivatives, stock and commodity derivatives.

The third category: Fund Manager fund license

In New Zealand, all managers who manage investment schemes must be licensed and registered with the Companies Office.

The FMA will also license fund management to provide managed investment scheme manager services.

Category 4: Currency Exchange License

Currency exchange providers need to register with the FSP. An industry insider told Tianwei.com that the FMA license mainly regulates financial products and derivatives transactions, and does not regulate real foreign exchange transactions.

New Zealand FMA license application requirements:

First, you need to register a local company and apply for a license through the company as a regulatory condition.

1. The company name must end with Limited or LTD

2. A registered company only needs one shareholder and one director. The shareholder can be a natural person or a legal person, but the director must be a local resident of New Zealand.

3. Proof of shareholder, guardian and address; proof of address needs to be translated into English

4. The company’s registered share capital is as low as NZD 100, and the share allocation document is required.

5. Registered address: New Zealand address (available)

Completed application information:

1. Certificate of incorporation;

2. Company extract company information summary;

3. Company IRD (you can apply if you have an account, otherwise you don’t have one);

4. Accountant certification documents

The Hong Kong Money Service Operator License, also known as the Hong Kong Customs License, is a compliance license developed and issued by the Money Services Supervision Division of the Hong Kong Customs Department in accordance with the "Anti-Money Laundering and Fund Raising (Financial Institutions) Bill" drafted in 2012. "Person" refers to individuals or (corporate) institutions that operate currency exchange services or remittance services in Hong Kong. This license and its legislation give regulatory agencies appropriate supervisory and law enforcement powers and formulate relevant penalties. As a way to improve and strengthen the anti-money laundering system applicable to financial institutions and bring it in line with international unified standards, it is important to consolidate Hong Kong's status as an international financial center. extremely important role.

As a major financial market in Asia, Hong Kong is also the largest offshore RMB center in the world. It is at the forefront of the world in terms of the maturity of its regulatory structure, the perfection of public transactions, the scale of asset management and the richness of financial products. It is one of the many The preferred platform for investors. Every day, RMB 890 billion is processed through Hong Kong's real-time payment system, and the RMB trade settlement transaction volume processed through Hong Kong has exceeded RMB 230 million. The Hong Kong market implements a financial license management system, and enterprises or institutions can conduct transactions in stocks, financial derivatives, foreign exchange, gold and other products at the same time. Holding this license means that you have obtained a "pass" in the Hong Kong currency and foreign exchange market and can carry out relevant currency exchange services to provide investors with better prices, higher efficiency, and more flexible and convenient financial services.

In the process of becoming a "Belt and Road" country, my country's physical enterprises are bound to make more use of overseas futures and derivatives markets for risk management. For my country's futures operating institutions, assisting these enterprises to participate in overseas markets and enable them to "go global" more smoothly is not only a responsibility, but also an opportunity and a challenge.

Money services refer to currency exchange services or money transfer services.

Money changing service refers to a currency changing service carried out as a business in Hong Kong, but does not include such services incidental to the main business, such as a retail business that accepts foreign currency in transactions or a person who manages a hotel so operated , services that meet the following description—

(a) the service is operated on the premises of the hotel mainly for the convenience of customers staying at the hotel; and

(b) Includes only transactions in which the person purchases non-Hong Kong dollar currencies in exchange for Hong Kong dollar currencies.

Remittance service (remittance service) means a service carried out as a business in Hong Kong that provides one or more of the following transactions—

(a) send money or arrange for money to be sent to a place outside Hong Kong;

(b) receive or arrange to receive money from a place outside Hong Kong;

(c) arrange to receive money outside Hong Kong.

The Commissioner will refuse to issue a license under the following circumstances and will notify the applicant in writing:

(a) The applicant or one or more applicants in the applicant's business fail to pass the fitness and fitness determination;

(b) the proposed premises are not suitable for the operation of money services; or

(c) The applicant fails to obtain the written consent of each occupier of the residential premises used for operating money services to allow an authorized person to enter the premises for routine inspection.

Information required to apply for money service operator license services:

1: Apply for the original certificate of registration (CI) of the company;

2: Original business registration certificate (BR) of the company applying for;

3: Apply for clear scans of ID cards or passports of company directors and shareholders;

4: Apply for clear scans of the travel documents (Hong Kong and Macau passes) of the company’s directors and shareholders;

5: Two copies of the company’s articles of association;

6: Apply for a copy of the company's company account information, which can accurately reflect the company's account name and account number.

7: Company business description.

Hong Kong No. 1, 2, 4, 5, 6 and 9 financial license application process and fees

Hong Kong’s financial regulatory agency is the Securities and Futures Commission of Hong Kong. There are three types of licenses: Type 1 (securities trading), Type 2 (futures contract trading), and Type 3 (foreign exchange leverage trading). The third type of license is for foreign exchange providers and is the most popular. The application approval time is 4-6 months. Various licenses have different capital requirements, ranging from HK$700,000 to HK$1.3 million. The annual fee ranges from HK$6,000 to HK$19,000 depending on the license type.

In terms of office location: a physical office must be established, and employees must be Hong Kong residents.

Applications for licenses must be submitted by a Hong Kong company or a registered Hong Kong company.

A company applying for a license must have at least two senior executives responsible for company management, and one of them must be appointed as the executive director. The applicant company and its executives, employees and shareholders must comply with the fit and proper principles stipulated by the Hong Kong Securities and Futures Commission. The SFC will evaluate the applicant's solvency and financial status, educational and other qualifications, relevant experience in the proposed business, ability to conduct regulated business activities honestly and fairly, company reputation and financial soundness.

Regulatory requirements: Licensed companies must maintain paid-in share capital and liquid capital at least as low as the minimum capital requirements at all times. Licensees holding client funds must open an account with a bank in Hong Kong. Client funds must be kept segregated. All licensees must maintain records related to financial solvency and condition, financial education overview, internal compliance and internal control systems.

All licensees must maintain reasonable financial records and submit monthly, quarterly and annual reports in accordance with internationally recognized accounting standards. All companies are required to disclose financial statements to the public.

The Bank of Lithuania is the main financial supervisory authority in Lithuania, combining the functions of the Central Bank of Lithuania and the Financial Supervisory Authority (Supervisor). Relatively loose regulations and significantly reduced costs for registration, licensing and maintenance of financial institutions have recently made Lithuania a region with a concentration of popular financial companies in the world.

The tasks of the central bank include:

· Promote and develop Lithuania as an international financial services center;

· Protect and strengthen Lithuania’s reputation as a financial center in the EU;

· Appropriate supervision and regulation of international financial services;

· Formulate policies and provide advice to government and assist in the regulation of such services;

· Collect, archive and publish reliable and timely information and remain abreast of changes and emerging trends in relevant aspects of these services.

· Implement fiscal policy

Business scope of payment institution

"Licensed (licensed) payment institution" provides the perfect solution for many financial technology companies and startups to process personal private payments or remittances, Internet payments, and Internet store payments across Europe. The EU Payment Services Directive passed in 2007 and the second edition of the Payment Services Directive revised in 2017 provide the legal basis for the European single payment market. Licensed payment institutions can provide the following services in Lithuania and the EU:

Provide payment accounts to customers and accept customer storage services;

(1) Provide withdrawal services to customers;

(2) Execute payment transfer: Provide transfer services to customers who have opened payment accounts, remit customer funds to other customer accounts in the same payment system, or remit customer funds to other financial institutions;

(3) Accounts of institutions or other payment institutions. This includes single or multiple transfers from a cash account; payments by debit card or similar means; transfers from credit lines and recurring payments;

(4) execute payment transactions under a credit limit, execute direct debits, including one-time direct debits, execute payment transactions by payment card or similar means, and execute credit payments, including periodic payments;

(5) To execute a payment transaction, the payer agrees that the payment platform shall pay the payment through any telecommunications terminal equipment, digital or equipment and the telecommunications network or IT system operator, or shall act as a supplier of goods or services and the customer using the payment service. Media and intermediary roles.

Lithuania EMI Financial Payment License

(1) Lithuania does not specifically require the company’s management to operate locally;

(2) To apply for a license, you do not need to register a company first. You can wait until you obtain the license before registering the company for operation;

(3) Quick license application, which takes about three months;

(4) The company information documents and compliance documents submitted can be in English;

(5) Remote client verification. The innovative "Know Your Customer" process verifies and opens accounts for remote customers without requiring the customer's presence to open an account;

(6) Passports to other EU jurisdictions. Passports from other EU countries are free and take a month;

(7) No sanctions will be imposed in the first year. The Bank of Lithuania promises to support start-ups and will not impose penalties if the company commits minor violations during the first year of operation;

(8) Apply for a visa. Customers from non-EU areas can apply for a visa for Lithuanian start-up business owners.

Lithuania EU Pass payment license application requirements:

Capital deposit: The Central Bank of Lithuania has capital deposit requirements for payment licenses. The minimum deposit is 125,000 euros. The company is not required to pay a capital deposit before receiving license approval. After the company obtains the license, it needs to register the company and pay a capital deposit

Personnel requirements: The company's main operations do not need to be in Lithuania, so employees including the company's senior executives do not need to be hired locally. However, the Central Bank of Lithuania stipulates that payment institutions need to have a local contact person. This employee may serve as a compliance officer, an anti-money laundering officer, or a member of the board of directors. Tianfengpo can hire this employee for you, and the monthly salary is about 4,000-6,000 euros.

Qualification requirements for directors and board members: The Central Bank of Lithuania has strict review requirements for directors and shareholders of payment institutions. Only qualified directors and shareholders can apply for a license for the company.

Director requirements: Must have a higher education background in law, management, business administration or economics. And in the past eight years, he has served as an executive in a financial company in payment and related businesses for two years. Directors need to submit the following personal documents:

(1) Personal identity document, such as passport;

(2) Complete the central bank’s questionnaire;

(3) Notarization of no criminal record;

(4) Degree certificate.

The company must have at least two other board members who have a higher education background in law, management, business management or economics, and have held senior positions as an auditor, lawyer, financial practitioner, accountant, etc. for one year in the past five years. . Board members also need to submit the following personal documents:

(1) Personal identity document, such as passport;

(2) Complete the central bank’s questionnaire;

(3) Notarization of no criminal record;

(4) Degree certificate.

Shareholder requirements: If the shareholder of the Lithuanian company is a company or enterprise, the following documents are required:

(1) Company registration documents certified by The Hague;

(2) Financial statements and auditors’ reports for the past three years;

(3) A list of the members of the management of one or more persons, indicating their names, surnames, positions, and a questionnaire indicating the good reputation and experience of each natural person;

(4) Articles of Association.

If the shareholders of the Lithuanian company are natural persons, the following documents are required:

(1) Copy of passport and notarized copy of proof of address;

(2) Complete a questionnaire regarding a natural person’s reputation and experience;

(3) Documents and data describing financial status:

Annual tax returns for the past three years;

(1) Details of personal assets and liabilities, including available funds, movable and immovable property,

(2) Grant and obtain loans, issue guarantees, guarantees, pledge or seize property;

(3) Certificate of no criminal record from the country of residence.

The process of applying for a payment license takes about 4-5 months:

(1) Prepare due diligence documents for the company’s directors and shareholders to ensure that they meet the “proper and appropriate” requirements;

(2) Prepare compliance documents for license application, such as business plan, business operation model, 3-year financial forecast, internal operations manual, combating money laundering and terrorist financing, know your customer process,

(3) Customer contracts, company structure diagrams, etc.;

(4) Submit a license application to the Central Bank of Lithuania and respond to all inquiries/opinions (if any) raised by the Central Bank about the company;

(5) Obtain a license;

(6) Register a company;

(7) Pay capital guarantee

The Dubai Financial Services Authority (DFSA) is an independent financial services regulator that regulates transactions conducted within the Dedicated Financial Free Zone (DIFC) in Dubai, United Arab Emirates. The DFSA has also received authorization from the DIFC Registrar of Companies (RoC) to investigate alleged serious breaches of DIFC Companies Law by DIFC companies and partnerships and to seek enforcement remedies applicable to the Registrar.

DFSA also holds authorization access conditions that are as stringent as its authorization license.

Advantages of settling in DIFC:

1. 100% foreign ownership;

2. No income tax and profit tax (promise to be exempt from tax for 50 years)

3. Systematic double taxation treaties applicable to entities registered in the UAE

4. No exchange rate controls (free capital convertibility)

5. High standards of laws, regulations and terms

6. Completely transparent operating environment, following international best practices and internationally recognized legal and regulatory procedures

7. Modern transportation, communications and Internet infrastructure

DIFC license application process:

1. Submit application materials and pay fees.

2. DFSA conducts preliminary and final review.

3. Complete DIFC company registration.

4. The review will be completed in about 4 months.

The DFSA will send a form requesting DIFC company registration. After completing the registration, the DFSA authorization certificate will be issued.

An entity seeking recognition as a private investment fund (an "applicant") must complete and submit to the Commission (Director, Investment Practice Division) a Private Investment Fund Application Form (Form IB/PIF-1) as an attachment to Schedule I. Guidelines. Applications must be submitted through the applicant’s local representative (i.e. authorized representative, registered agent or legal representative).

The transition period for private investment funds is from December 31, 2019 to July 1, 2020. Entities operating as private investment funds during the transition period must apply for recognition on or before July 1, 2020. After the transition period, the requirements of the Act will be fully implemented and any fund operating as a private investment fund that has not sought recognition as a private investment fund before July 1, 2020 will be deemed to be engaged in unauthorized financial services businesses and will be subject to enforcement action.