Smaller Banks Without MSB Or Compliance Departments - Best Bet For Getting Banking For Your Money Services Business

If you're attempting to get a bank account for your money services business aka MSB, you've probably realized it's no easy thing to do. If you do internet research on banks offering banking to money services business you've probably found a lot of the larger national chain banks such as Bank of America, Wells Fargo, US Bank, and Fifth-Third among others.

Most of these larger banks are very concerned about their image and reputation and just don't seem willing to take a chance on an MSB. Despite paying lipservice and saying they offer MSB accounts most money services businesses will find they are turned down for one reason or another. Something many MSB's run into is a bank saying they aren't satisfied with an AML or Compliance audit. Though it may be tempting to run out and get another audit hoping to get a bank account, audits are not cheap. You're probably looking at a few thousand dollars from a smaller company or attourney and as much as $20,000 if you go with one of the big three firms.

You may want to think long and hard before hopping on this rollercoaster ride of getting audits from numerous different places hoping the banks will be satisfied with one. Many money services business find they'll get 2-3 audits, shell out tens of thousands of dollars and still hear the same thing from banks.

For this reason you may want to seek out smaller banks where they are more hungry for business, as well as where people in the bank such as a bank manager or business account manager may actually take a serious look at your business and may actually have some power in terms of deciding whether to or whether not to open up an account for your business. I've found when it goes up to some compliance department in the sky you never hear anything good back. Personally I'd rather sit down face to face and talk to the decision maker in that bank which is why I would suggest going to smaller to midsize banks. These could be single location banks, or you may have better luck going after a bank with say 4-6 branches. They are small enough to retain some decision making power on the branch level which is what is going to give you your best bet at getting a banking relationship.

If you've tried all the major national banks and have been shutdown time after time, try calling some smaller local community banks and credit unions. There's no gurantee you will get an account, however you will probably at least leave your meeting feeling they took you seriously, attempted to understand your business and are at least giving you a shot, where as the national branches basically will pay you lip service, waste your time and then deny you.