The new Money Services Businesses (MSB) Call Report tool has been released within the Nationwide Multi-state Licensing System (NMLS) to streamline MSB reporting, improve industry compliance, and create a comprehensive database of nationwide MSB transaction activity.
Licensees are required to file by May 15. Currently, 18 state agencies have adopted the report for first-quarter 2017 and 80 percent of all money transmitters within NMLS will be expected to submit reports, according to the Conference of State Bank Supervisors (CSBS), which created NMLS along with the American Association of Residential Mortgage Regulators. Several additional states are expected to adopt the MSB Call Report soon, CSBS said.
NMLS, which began operating in 2008, is the sole system of licensure for mortgage companies for 58 state agencies and the only licensure system for Mortgage Loan Originators (MLOs) for 59 state and territorial agencies. It is owned and operated by the State Regulatory Registry LLC, a wholly owned subsidiary of CSBS.
Specifically, the MSB Call Report being used in the NMLS platform applies to licensees in states that adopt the report and engage in money transmission; check cashing; issuing or selling travelers checks, prepaid access/stored value products, money orders or drafts; foreign currency dealing and exchange; bill paying; and virtual currency.
The new report tool is expected to bring more uniformity to state licensing requirements, increase regulatory collaboration and provide more transparency to non-depository supervision, Sue Clark, director of regulatory and consumer affairs at the Vermont Department of Financial Regulation, said in a statement April 18.
“The information collected through these call reports will provide complete and meaningful information on MSBs, including fintech companies licensed to do business as money transmitters, and assist state regulators to better analyze risk, monitor compliance, and make more informed and timely decisions when it comes to MSB supervision,” Clark said.
The enhanced reporting also will give a detailed snapshot of fintech companies as they mature and evolve, she added.
The MSB Call Report includes national and state-specific MSB activity, which will be submitted quarterly and annually, according to CSBS.