How to Open a Business Bank Account for Your Money Service Business in the UK (2025 Guide)

Starting or running a Money Service Business (MSB) in the UK comes with a unique set of challenges, and one of the biggest is securing a reliable business bank account. Whether you’re launching a remittance company, a foreign exchange service, or a payment institution, the ability to open and maintain a UK-based bank account is crucial.

But here's the problem:

UK banks often turn away MSBs, citing compliance risk, regulatory obligations, or vague “business policy” reasons. Even experienced operators with clean records sometimes face delays, rejections, or sudden account closures.

This guide breaks down exactly what you need to know in 2025 to overcome those hurdles and open a business bank account as a money service provider in the UK—without wasting time or getting stuck.

What Is a Money Service Business (MSB)?

In the UK, an MSB refers to any company offering:

• Money transfers/remittances
• Foreign currency exchange (bureau de change)
• Cheque cashing or payment services

Depending on the scope of your services, you may need to:

• Register with HMRC for AML supervision
• Register with or get authorised by the FCA (e.g., as a Small Payment Institution, Authorised Payment Institution, or Electronic Money Institution)

If you plan to hold client funds, process payments, or provide digital wallets, an FCA licence is often mandatory.

Why MSBs Struggle to Open Business Bank Accounts in the UK

While nearly every UK business can walk into a bank and apply for an account, MSBs face a completely different experience. Here’s why:

1. High-Risk Industry Label

MSBs are classified as “high-risk” by banks because they are more likely to be used (knowingly or unknowingly) in money laundering or terrorist financing. Even when your operations are completely legal, banks apply enhanced scrutiny.

2. Regulatory Complexity

Banks must carry out extensive due diligence to ensure your business complies with anti-money laundering (AML) regulations. This makes onboarding MSBs time-consuming and costly for them.

3. Inadequate Documentation

A large number of MSB applicants fail to prepare the right documentation, especially around compliance procedures, transaction monitoring, and customer verification.

Why a Bank Account Is Essential for MSBs

No matter your business model, a dedicated UK business bank account is vital for:

• Receiving customer funds
• Processing payouts to beneficiaries
• Maintaining segregation of client funds (as required by FCA/HMRC)
• Building trust with partners and regulators
• Conducting financial audits and record-keeping

You simply cannot operate as a professional, compliant MSB in the UK without one.

What Documents You Need to Apply for an MSB Bank Account

When applying for a business bank account, you should be ready to submit a comprehensive set of documents. Here’s a standard checklist in 2025:

• Business registration certificate (Companies House)
• Proof of MSB status (HMRC registration or FCA license)
• Detailed business plan including your corridors, customers, volumes, and fees
• AML/CFT policy and procedures (including transaction monitoring)
• Organisational chart with beneficial ownership structure
• Proof of identity and address for all directors and shareholders
• Projected financials and source of initial funding
• Website/app overview and user onboarding flows

What to Expect During the Onboarding Process

Even if you submit a full application, the onboarding process can take weeks or months, depending on the bank. Here’s what typically happens:

• Initial screening of your documents
• Follow-up questions about your business model and transaction flows
• Compliance interview (especially for remittance businesses)
• Enhanced due diligence (EDD), including source of funds and customer base
• Approval or rejection

Some banks may reject your application without giving a detailed reason. This is frustrating but common.

What If You Get Rejected?

Many new MSBs experience multiple rejections before finally getting an account. If that’s you, don’t panic. Here's what to do:

1. Review Your Gaps

Was your AML policy strong enough? Did you clearly explain your use case? Did you show that your business is regulated or planning to be?

2. Strengthen Your Compliance Framework

Banks want to see that you're taking financial crime prevention seriously. Invest in proper AML software, staff training, and risk assessments.

3. Wait Until You're Fully Registered

If you're applying before your FCA or HMRC registration is complete, your chances are much lower. Consider delaying your bank application until you’re officially recognised.

4. Consider Partnering With a Platform

Some MSB-focused platforms can help you operate under their regulatory and banking umbrella, letting you launch while you build your own infrastructure.

Alternative Options If Traditional Banks Won’t Onboard You

If high-street banks aren’t an option, there are still alternatives:

• Banking-as-a-Service (BaaS) providers that offer accounts through licensed partners
• EMIs and PIs with safeguarding accounts for client funds
• White-label MSB platforms with pre-integrated banking infrastructure
• Agency relationships under another licensed MSB or payment firm

These models allow you to start operations legally and compliantly—even while your own account setup is pending.

How to Improve Your Chances of Success

Here’s how to boost your chances when applying for a business bank account as an MSB:

• Get licensed or registered first
  Banks are more receptive to MSBs already supervised by the FCA or HMRC.
• Clearly define your corridors and transaction types
  Vague or overly broad use cases (e.g., “global payments”) are red flags.
• Provide strong risk controls
  Explain how you onboard customers, monitor transactions, and handle suspicious activity.
• Avoid high-risk jurisdictions
  If you're dealing with countries on FATF grey/blacklists, be prepared to justify your risk mitigation.

Final Thoughts: Start Smart With the Right Infrastructure

Opening a business bank account for an MSB in the UK isn’t easy—but it’s not impossible either. If you approach the process with a clear business plan, strong AML framework, and transparent documentation, you can dramatically improve your chances.

But if you’re stuck in endless bank applications, there is a faster way forward.

Final Thoughts: Launch and Scale Your Remittance Business with Confidence

Opening a bank account for your Money Service Business in the UK can be one of the most frustrating parts of your journey — but it doesn’t have to be. With the right preparation, regulatory compliance, and trusted partners in place, you can move forward confidently and avoid unnecessary delays.

At RemitSo, we support both new and existing MSBs every step of the way. Whether you're struggling with bank onboarding or planning to expand your operations, we offer a full suite of services tailored to the remittance industry, including:

• White-label remittance platform with global corridor support
• End-to-end compliance assistance, including AML policies and transaction monitoring
• MSB licensing and registration support with FCA/HMRC
• Assistance with business bank account setup via trusted EMI/BaaS partnerships
• Settlement and payout partner integrations across Asia, Africa, and beyond
• Ongoing operational guidance to keep your business secure and scalable

Ready to launch or grow your money service business?

Let RemitSo help you go live in 30–60 days—with banking, licensing, and remittance infrastructure all under one roof.

Request a free consultation at www.remitso.com