---
title: "Money transmitter"
description: "A business that accepts and transmits funds on behalf of others — a regulated activity requiring state licenses and federal registration in the US."
reviewedBy: "Krisan Nichani, Chief Compliance Officer"
updated: "July 2026"
canonical: "https://infinite.net/learn/glossary/money-transmitter"
---

# Money transmitter

A money transmitter is a business that accepts funds from one person and transmits them to another. Well-known examples include Western Union, MoneyGram, PayPal, and Venmo. In the United States, money transmission is a regulated activity: it generally requires a license in each state where the business operates, plus registration with FinCEN as a money services business (MSB), with full BSA/AML program obligations attached.

Whether a given platform is "transmitting money" is a legal question that turns on the flow of funds: who holds the money, in whose name, and under whose control. Getting it wrong is expensive — unlicensed money transmission is a federal crime — which is why platforms that touch customer funds structure their flows carefully and get counsel involved early.

Infinite’s third-party funds flow is built for this problem: every customer gets their own account at the network’s partner institutions, with onboarding, screening, and monitoring run on the network. How that maps to your licensing posture depends on your structure — our team walks through it in diligence, with documentation your counsel can review.

## Frequently asked questions

### Do I need a money transmitter license for my platform?

It depends on the flow of funds — who holds the money, in whose name, and under whose control. It is a legal question worth getting counsel involved in early; unlicensed transmission is a federal crime. [Third-party funds flow](https://infinite.net/funds-flow/third-party)

### What are examples of money transmitters?

Western Union, MoneyGram, PayPal, and Venmo are well-known examples — each accepts funds from one party and transmits them to another. Crypto exchanges and payout platforms often meet the definition too, depending on who holds and controls the funds in their flow.

### Is money transmission regulated federally or by states?

Both. There is no single national money transmitter license — transmission generally requires a license in each state where the business operates, and a nationwide business typically holds 40-plus. Federal registration with FinCEN as a money services business applies on top, with full BSA/AML program obligations attached. [Money services business (MSB)](https://infinite.net/learn/glossary/money-services-business.md)

## Where it fits on Infinite

- [Third-party funds flow](https://infinite.net/funds-flow/third-party)
- [Embedded Compliance](https://infinite.net/compliance/embedded)

## See also

- [Bank Secrecy Act (BSA)](https://infinite.net/learn/glossary/bank-secrecy-act.md)
- [Know Your Business (KYB)](https://infinite.net/learn/glossary/know-your-business.md)