Money Service Businesses and Banks

Here I posted about the torrid time Money Service Businesses were having hanging onto banking facilities.

The difficulties persist. Some businesses have closed, or reverted to older practices, keeping the flow of money hidden, out of the limelight.

This latter practice is a spectacular own goal, undoing decades of good work by law enforcement and regulators.

Other businesses have managed to convince their current bankers to continue to support part, or all of their business. Banks have taken perplexing positions. Some are happy to deal with foreign exchange, but not with money transfer. Some take the opposite view.

In the course of my work, I have come across one or two solutions that appear to be working. Some banks elsewhere in the EU are happy to take on some elements of MSB business. There are one or two banks here in the UK, who are prepared to look at each business individually. It is a measure of the world that we live in that I would jeopardise my relationship with these providers were I to name them.

Last week I was able to sit down with a client and his bank and have a sensible conversation about risk and how best to manage it. The bank was engaged, constructive and reasonable. Astonishing! I hope that this is an indication that common sense is returning.