As a money services business (MSB), banking challenges are the price of doing business, but it doesn’t have to be. Maintaining or securing a strong banking relationship is essential for survival.  

If your business has ever faced banking hurdles, understanding common pitfalls can help you stay ahead. Here are some key factors that often lead to banking challenges and how to address them proactively. 

1. Don’t Wait Until It’s Too Late
If you receive a letter from the bank, act immediately. Many businesses wait until the last minute to respond, which can limit their options. Engaging with a compliance professional early ensures you have time to gather documents and meet any requirements.

2. Keep Business Documents Up to Date
Expired licenses, permits, or registrations can delay your banking approval or renewal. Ensure everything, from your FinCEN registration to check casher permits, is current. Staying organized prevents unnecessary setbacks.

3. Customize Your Compliance Program
Every business is unique, and so should be its compliance program. A templated anti money laundering (AML) compliance program copied from another business—or even from a Western Union framework—won’t align with your specific operations. Tailoring your AML compliance program ensures regulatory compliance and builds trust with your bank.

4. Invest in Effective Monitoring Systems
Electronic monitoring offers better accuracy, efficiency, and safeguards than manual processes. Banks feel more confident when technology is in place to track transactions, loans, and thresholds over time. Investing in compliance technology can enhance both your security and credibility.

5. Choose the Right Compliance Partner
Working with a qualified compliance professional is crucial when a bank requests an independent review. While attorneys and CPAs may provide reviews, a CAMS-certified specialist is often more familiar with MSB operations, leading to better outcomes. A compliance expert can streamline the process and ensure all requirements are met efficiently.

6. Follow Your Compliance Program
Having a compliance program isn’t enough—it must be followed consistently. Banks expect owners, managers, and employees to adhere to policies and procedures. Regularly reviewing and updating your compliance program and risk assessment, especially after changes in service providers or compliance officers, reinforces your commitment.

7. Know Your Business Inside & Out
Banking relationships thrive when business owners fully understand their operations, policies, and procedures. A well-informed owner instills confidence and ensures compliance with banking requirements.

8. Maintain Professional Relationships
Banks have the power to decline applications or renewals based on perceived risk. A positive relationship with your banking representatives, including relationship managers and risk departments, can make a difference. Professionalism and cooperation go a long way in maintaining trust.

9. Be Transparent
Full transparency can mean the difference between approval and denial. If a bank discovers undisclosed information after approval, it could result in termination of services. Being upfront about your business operations builds credibility and prevents future complications.

10. Cooperate with Banking Requests
Regulations require banks to follow strict policies. Viewing your relationship as a partnership rather than an obstacle can help. Responding promptly and thoroughly to bank requests demonstrates compliance and eases the process for both parties.

Need Expert Guidance?
If you’re facing banking challenges or want to strengthen your compliance efforts, our CAMS-certified consultants are here to help. Contact us to learn how we can support your MSB build and maintain strong banking relationships.