On May 24, the Conference of State Bank Supervisors (CSBS) released that it is seeking public comment on proposed nationwide licensing requirements for money service businesses (MSBs). The comment period will end on July 23.
The proposal aims to create a national standard for licensure across the MSB industry, while providing state regulators with the requisite information to make licensing decisions. The proposed structure is based on nationwide requirements reviewed by a lead state agency. Any remaining state-specific requirements would be limited to items not covered by the national standards. The standards for MSBs include core requirements for all applicants in all industries as well as MSB-specific requirements. The requirements will be built into the modernized Nationwide Multistate Licensing System (NMLS).
“The goal of the proposal is a national standard that allows the state system to operate as a single network while retaining local accountability and local control,” said CSBS President and CEO John W. Ryan. CSBS states that the new requirements will help to streamline the licensing process as part of state regulators’ efforts to increase uniformity in state regulation.
The nationwide proposal builds on the Multistate MSB Licensing Agreement, which currently includes 29 states. As of the end of April, 49 state agencies were using NMLS to manage MSB licenses for over 2,800 companies.