How do I set up a money transfer business?
Your first step will be to incorporate a limited company. This is a fairly straight forward step and should take you no longer than 1-2 days to setup.
You will be required to register with HMRC for Fit and Proper certification as well as money laundering regulations (MLR). This is a fairly straight forward procedure and involves providing HMRC some information about yourself and your company and what you intend to offer by way of business services.
Next, you will need to apply for a license with the Financial Conduct Authority. You have two options, namely, to register as a small payment institution – an SPI, or an authorised payment institution – an API. The SPI is an easier and quicker route and will enable you to operate your money transfer business in the UK, serving UK-based users. You also have the option to apply for an authorised payment institution license instead. With this license you will need to show an initial capital amount of EUR 20,000 and safeguard your user funds into a separate ring-fenced and segregated bank account. The authorised payment institution will however enable you to provide your service to users based across all countries with the European Economic Area (EEA). In your license application you will be required to provide details of your IT system. It is therefore recommended that you liaise with third party IT vendors at an early stage to ensure that you are able to provide all your system details in you FCA license application.
With regards to timeframe, you should expect 2-3 months to obtain the small payment institution registration and 4-5 months for an authorised payment institution.
Buckingham Capital Consulting is a leading international consulting firm, specialising in payment services, electronic money, banking and investment services. We are able to advise you on the best course of action and strategy based upon your business plan and financial product or service. We can help you with licencing, compliance, operational setup and related services, including, obtaining banking facilities.
Call us today on 02078662512 or 442078662512 if you are calling from abroad. You can send an email to firstname.lastname@example.org to arrange a telephone call or to discuss your requirements and plan. We are also able to arrange calls or conference calls using Skype. Our Skype ID is BCC54321. If you wish, we can arrange a meeting at one of our offices.
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