CSBS Sets One Company, One Exam For Nationwide Money Transmitter License

By RTTNews Staff Writer | Published: 9/25/2020 10:18 AM ET

The U.S. State Regulators organization has rolled out a state-initiated program whereby nationwide payments firms, including cryptocurrency firms, will undergo one comprehensive exam in 2021 to satisfy all state examination requirements for the money transmitter license across the U.S. The firms holding licenses in 40 or more states in the U.S. will be eligible for the exam.

The Conference of State Bank Supervisors (CSBS) will offer the one company, one exam to 78 of the nation's largest payments and cryptocurrency companies in 2021 that currently hold the license in 40 or more states. These companies move a combined more than $1 trillion in customer funds annually.

CSBS is the nationwide organization of banking regulators from all 50 states, the District of Columbia, American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands.

The streamlined state examinations, known as MSB Networked Supervision, for the money transmitters license will be conducted from 2021. This follows the successful completion of One Company, One Exam pilots conducted in 2019 and early 2020. The pilots included several companies, including Western Union.

MSB Networked Supervision is one of several state-driven programs based on recommendations from the CSBS Fintech Industry Advisory Panel, which emphasized the need to increase multistate exam coordination.

This exam protocol will enable states to fine tune a risk-based approach to each company's operations when compliance issues arise. Each exam will be led by one state overseeing a group of examiners sourced from across the country. This will help regulators gain more insight while also freeing up state resources.

This exam when compared to the multistate exams will be a significant change in terms of driving harmonization and streamlining of state supervision across the board.

This initiative has broad support from all CSBS members and Money Transmitter Regulators Association (MTRA) membership, which spans all state regulators that regulate money transmission.

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe