Money services business (MSB) customers present the greatest financial crime risks to mitigate if they:...

Money services businesses (MSBs) are considered higher-risk customers under AML/CFT frameworks due to their role in facilitating payment flows and fund transfers. FATF guidance highlights specific characteristics that elevate financial crime risk.

One significant risk arises when MSBs process the activity of their customers’ customers. This indirect exposure reduces transparency and makes it more difficult for the financial institution to identify the true originators and beneficiaries of transactions, increasing vulnerability to money laundering and terrorist financing.

Another major risk is frequent cross-border transfers. International transactions introduce geographic risk, particularly when funds move through or to jurisdictions with weaker AML controls or higher financial crime prevalence.

While high volumes of low-value transactions can present monitoring challenges, this characteristic alone does not necessarily represent the greatest risk without additional factors. Registration requirements are a regulatory control, not a risk indicator.