We have established a money transfer company in Canada and now we are looking for a bank in the US and want to be its Authorized Delegate in the USA for money transfer services.
Regarding the US: which states are included? Are TX, CA and NY included as part of the initial package?
Is Faisal Khan the principal license holder or a sublicensee and solution provider (in the case of US as well as the UK/EU rollout)?
If we do not intend to establish a company in the US, due to the regulations, taxes, etc. Is it possible to continue to operate from Ecuador, with payment and correspondent agreements given that we comply with all regulations in Ecuador?
Since your company only contacts, arranges, and opens the door to negotiate; is it possible to negotiate with the company willing to work with our company? What happens if an agreement is not reached on the issue of prices or for any other issue? Is the payment for your services reimbursed 100%?
In summary, there are 3 ways to enter the remittance market in the US, 1) obtaining your own licenses, 2) through an agreement with a company that has the licenses to operate (this is the way we currently work), and 3) operating a digital platform where the whole process is done by the MSB, and we never touch the funds. Is this correct?
Would our company be an agent of the sponsor? I’ve read a lot of jargon about the agent relationship; could you please elaborate on this a bit.
Do you have any typical sponsorship agreements drafts that you could share so I can get a better understanding of the potential terms we can expect?
Montana does not require a money transmitter license, so if I register a company there am I exempt from money transmitter licenses?
Our company is currently structured as a Delaware C-corporation. Will this present any issues? Is there a standard entity type a ‘sponsoree’ would be more likely to choose?
What are the solution providers payout rails? How can we find out their commercial terms and delivery times for the pay out countries?
With a US sponsored solution provider for Remittance-as-a-Service, would we also be able to use Europe as sending corridors?
Can we have a legal company name and then have a separate name (register a “doing business as”)? Is that allowed?
What is a list of reasonable payout countries that we can get access to by the solution provider when we are setting up our money transfer business?
Isn’t the idea of ‘renting’ a license considered wrong? Could it have legal ramifications if we rented a license?
Are they (the principal license holder) going to hold some money? For example, if they got 100% from the customer, do they hold to the funds or will they release it all?
Can I pick and choose a few US states for which we require money transmitter license coverage? If so, how does the pricing work?
Before we sign with your company, are there any reference projects we can see to help us make a decision?
Do you have any list price for regulatory coverage for each US state to help us pick our “Must-have States”?
How long does it take to sign the contract with the Principal License Holder providing us with regulatory coverage?
How many days will the owner of the license take to make a deposit (liquidation of the money) in my clients bank account?
What does it mean to “lease” a license and what services does your company (Faisal Khan & Co) provide for the fee you charge?