Remittance

How to Start a Remittance Business in the UK

Starting a regulated money transfer or remittance business in the UK is a multi-stage process involving FCA authorisation, banking partner access, AML compliance and payment infrastructure. Most new entrants underestimate the complexity — particularly around banking relationships and regulatory preparation. Agnos Consulting has built remittance infrastructure recognised by the World Bank as a first of its kind.

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What it actually takes to launch

There is no shortcut through this process. Each stage depends on the previous one — and errors early on create compounding delays later.

1

FCA Authorisation

A UK remittance business must be authorised or registered with the FCA as a payment institution under the Payment Services Regulations 2017. This requires a regulatory business plan, AML framework, capital adequacy evidence and key personnel approval. Without this, you cannot legally operate.

  • Authorised or Small PI registration
  • Regulatory business plan
  • AML programme documentation
  • MLRO appointment and approval
2

Banking Relationships

This is where most remittance startups stall. UK banks are highly selective about which money transfer operators they bank. You need a business account for operations and a safeguarding account for client funds. Many established banks decline MSBs outright — finding the right partners requires both preparation and relationships.

  • Operational banking account
  • Safeguarding account for client funds
  • Correspondent banking for payout corridors
  • MSB-friendly banking partners
3

Payout Network

You need a payout partner — or partners — in every destination corridor. This might be a bank, a mobile money operator, a local agent network or an API-connected payout aggregator. Coverage, speed, reliability and cost vary significantly between providers and corridors.

  • Bank account deposits
  • Mobile money (M-Pesa, Wave etc.)
  • Cash pickup agent networks
  • API-connected aggregators
4

AML and Compliance

Remittance is one of the highest-risk sectors for money laundering in the FCA's view. Your AML programme must be robust, risk-based and fully operational before you take your first transaction. KYC, transaction monitoring, sanctions screening and SAR processes must all be in place.

  • Customer identity verification
  • Transaction monitoring rules
  • Sanctions and PEP screening
  • SAR filing process
5

Technology Platform

Your remittance platform must handle customer onboarding, KYC verification, transaction processing, FX pricing, payout instructions and compliance reporting. You can build, buy or use a white-label SaaS platform — each with different cost and control profiles.

  • Customer onboarding and KYC
  • Transaction processing engine
  • FX rate management
  • Regulatory reporting
6

FX and Liquidity

You need access to FX liquidity at competitive rates to price your service profitably. This means either a direct relationship with a bank or FX provider, or using an FX aggregator. Your FX strategy determines your margin — and your ability to compete with established operators.

  • FX liquidity sourcing
  • Rate management and hedging
  • Spread optimisation
  • Settlement and funding

Built remittance infrastructure recognised by the World Bank

Steven Faulkner has been building remittance services since before the term fintech existed.

Equity Direct — East Africa

Implemented the Equity Direct remittance service — recognised by the World Bank as the first instant cross-border account-to-account remittance service to East Africa. Built from regulatory approval through to live operation, including banking partnerships, technology integration and AML framework.

Nigeria — 30 million accounts

Deployed mass payment solutions enabling real-time transactions across the NIBBS system to 30 million bank accounts across Nigeria. Obtained the regulatory approvals and banking relationships required to operate at that scale in one of West Africa's most complex regulatory environments.

Bangladesh (with BRAC) and Nepal

Launched early digital remittance services in Bangladesh — in partnership with BRAC, one of the world's largest development organisations — and in Nepal. Both required multi-regulator navigation and local banking relationships in markets with limited established infrastructure.

Regulatory approvals across four regulators

FCA (UK), FINTRAC (Canada), DFSA (Dubai) and multiple central banks across Africa. Each regulatory approval was obtained personally by Steven Faulkner — not delegated to a compliance team.


From concept to live operation

Agnos Consulting can support you at any stage — from initial feasibility through to regulatory approval, banking partner access, technology selection and live launch. Every engagement is conducted personally by Steven Faulkner.

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