MSB (Money Services Business)
A Money Services Business is a firm that transmits money, exchanges currency, or deals in similar services, subject to registration and AML obligations in most jurisdictions. Crypto exchanges, remittance firms, and some payment operators fall under an MSB classification depending on the regime.
MSBs are treated as high-risk by most banks, so an MSB applying for banking without the right registration and AML programme is usually declined on sight. Getting the MSB registration and compliance stack right before you approach a bank is what moves the conversation from a refusal to a review.
Anti-Money Laundering is the framework of laws, controls, and monitoring a regulated firm must run to detect and prevent the movement of illicit funds.
A Virtual Asset Service Provider is a business registered or licensed to exchange, custody, or transfer crypto assets on behalf of customers, a classification introduced by the FATF Travel Rule and adopted into national registration regimes across most jurisdictions that touch fiat rails.
A high-risk merchant is a business that card networks and acquirers classify as carrying elevated risk of chargebacks, fraud, or regulatory exposure, based on its industry, model, or history.
A Payment Institution is a firm licensed to provide payment services, such as executing transfers, acquiring transactions, or issuing payment instruments, without issuing e-money.