The CSBS confirmed that the new regime for money service businesses (MSB) will introduce the same rules and standards across 49 states, according to Reuters.
The CSBS launched the new regulatory regime for money service businesses on Tuesday 15 September. Above all, it will help companies expand across US states and lower the compliance costs for regulators.
A spokesperson for the CSBS told news.Bitcoin.com on Wednesday that the initiative involves all US states except Montana. Furthermore, the District of Columbia and Puerto Rico have also signed on.
MSB Networked Supervision initiative
The MSB Networked Supervision initiative details that one state will lead a group representing all 49 regulatory bodies in evaluating each different company.
Moreover, this new CSBS system will apply to 78 MSBs. These include Western Union and PayPal, which together move a reported $1 trillion annually, according to Coindesk.
“The next stage will be equally important as we raise the bar for multistate exam coordination,” said Money Transmitter Regulators Association Board President Rick St. Onge.
New CSBS system goals
Likewise, the new system aims to “ensure compliance with regulations on anti-money laundering, cybersecurity, financial condition, and other areas. Companies have to be licensed in 40+ states to be included,” the spokesperson for the CSBS noted.
What is CSBS?
The CSBS is the national organisation of bank regulators from all 50 states, American Samoa, the District of Columbia, Guam, Puerto Rico, and US Virgin Islands.
The organisation also operates the Nationwide Multistate Licencing System on behalf of state regulators.
Meanwhile, state regulators supervise 79% of all US banks.