. Do I still need a license if I use a BaaS provider?

While the BaaS partner provides the core license (like an EMI or MSB), you often still need your own registration or a "sub-license" depending on the jurisdiction. More importantly, you are responsible for the "front-end" compliance, such as KYC (Know Your Customer) and AML (Anti-Money Laundering) checks. 7BaaS specializes in setting up these regulatory compliance frameworks for you.

. How much can I save by using a BaaS model in 2026?

The savings are significant. Instead of spending $2M–$5M on infrastructure and initial capital for a full bank charter, a BaaS model allows you to launch with a fraction of that cost. Most firms see a 70% reduction in Capex, allowing them to spend their budget on customer acquisition instead.

. Is BaaS secure for my customers’ funds?

Yes. Under the BaaS model, funds are typically held in "Safeguarding Accounts" at the partner bank, which are highly regulated. In 2026, with the introduction of stricter regulatory standards, BaaS providers must adhere to high-level cybersecurity and data protection laws (like GDPR and MiCA) to ensure fund safety.

Fintech MSB Registration: A Complete Guide for Licensed Financial Businesses

By Rimsha Jalil
Published: December 24, 2025
Last updated: 24.12.2025

The world of fintech is growing rapidly, and companies providing payment services, digital wallets, or money transfers must prioritize Fintech MSB registration. Registering as a Money Services Business ensures compliance, builds credibility, and allows your business to operate legally across jurisdictions. At 7BAAS, we guide fintech startups and established businesses through every step of the MSB registration process. Learn more about our MSB advisory services and insights here.

What is an MSB?

A Money Services Business (MSB) is a financial entity that deals with:

Remittances and domestic/international money transfers
Issuing or redeeming money orders
Operating digital wallets and prepaid card programs

MSBs must comply with strict regulations to prevent money laundering, fraud, and financial crimes. For regulatory references, see FinCEN’s MSB guidelines.

Why Fintech Companies Need MSB Registration

Fintech MSB registration is essential for:

Legal compliance: Avoid penalties and fines by operating under a license.
Credibility: Attract investors, partners, and customers with a licensed MSB.
Global operations: Cross-border payments often require MSB registration.

7BAAS helps clients navigate these regulations, ensuring a smooth and compliant registration process. Learn more on our About Us page.

Step-by-Step Guide to Fintech MSB Registration

Step 1: Determine if Your Business Qualifies as an MSB

Identify whether your services—money transmission, currency dealing, or payment services—require Fintech MSB registration.

Step 2: Choose Jurisdiction & Regulatory Authority

USA: Register with FinCEN and relevant state authorities.
Canada: Register with FINTRAC.
UK/EU: Register under FCA or local financial regulators.

Step 3: Prepare Required Documentation

Prepare the following for your MSB license application:

Business incorporation documents
Management and ownership structure
Anti-money laundering (AML) policies
Compliance programs and IT security protocols

Step 4: Submit Application

Ensure forms are complete and accurate. Regulatory bodies review applications based on AML/KYC adherence.

Step 5: Post-Registration Compliance

Maintain records, file reports, and follow compliance audits. 7BAAS helps fintechs set up post-registration processes to avoid penalties. Learn more in our MSB registration advisory.

Common Challenges in MSB Registration

Complex regulatory requirements
Different compliance standards across jurisdictions
Risk of application rejection due to incomplete documentation

Partnering with 7BAAS ensures all documentation, policies, and operational setups meet regulatory standards.

Benefits of Using Expert MSB Advisory Services

Faster, efficient registration process
Reduced risk of non-compliance
Guidance on cross-border operations and fintech licensing
Access to industry insights and marketplace opportunities

Learn more on our services page.

Conclusion

Fintech MSB registration is crucial for compliance, credibility, and growth. With expert guidance from 7BAAS, your fintech can streamline registration, maintain regulatory standards, and scale efficiently. For detailed consultation, explore our services or contact us.

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Rimsha Jalil

Rimsha Jalil is a fintech and compliance writer. Her work translates multi-jurisdiction rules into action for operators and investors buying, selling, or scaling payments businesses worldwide. She maps deals and launches to the frameworks that actually matter—FATF’s AML/CFT standards; U.S. FinCEN MSB registration and renewals; the UK FCA’s payment services regime; EU PSD2 obligations; Singapore’s Payment Services Act; and Australia’s AUSTRAC enrolment/registration for remittance and digital currency exchange providers. Expect checklists, closing workflows, and post-registration upkeep you can apply across markets.

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