Operating a foreign exchange (FX) company or money service business (MSB) in the UK comes with serious regulatory demands—and even greater banking challenges. Despite being fully licensed and compliant, many FX and MSB companies find themselves denied access to traditional bank accounts, often without a clear explanation.
This is where RiskLink steps in. As a trusted partner in high-risk banking solutions, we help UK-based FX and MSB firms navigate complex requirements and secure relationships with banking institutions that understand their business model and risk profile.
Why Are FX and MSB Companies Considered High-Risk by Banks?
While legal and regulated, FX and MSB operations are flagged by most traditional banks as high-risk due to:
- High transaction volumes: FX and remittance services often handle large sums and frequent cross-border payments.
- Perceived AML risk: The sector is vulnerable to money laundering and requires robust controls to mitigate that risk.
- Complex customer bases: Working with clients in different jurisdictions with varying KYC standards creates risk asymmetry.
- Weak understanding by traditional banks: Many banking institutions lack internal expertise to properly assess MSB/FX risks, so they avoid them altogether.
Even firms regulated by the Financial Conduct Authority (FCA) may be rejected simply due to internal de-risking strategies by major banks.
Banking Strategies for FX and MSBs in the UK
So, how can your FX or MSB business improve its chances of being accepted by a banking provider in the UK?
1. Present a Complete Risk Profile
Banks need clarity. Be ready to show detailed internal AML policies, client onboarding procedures, risk scoring models, transaction monitoring systems, and the jurisdictions you operate in. The more transparent and structured your documentation is, the better your chances.
2. Avoid Tier 1 Banks for Direct Onboarding
Major banks (Tier 1) in the UK rarely open accounts for MSBs and FX firms without an extensive banking history. Instead, focus on Tier 2 or Tier 3 banking partners, e-money institutions or niche providers familiar with the FX sector. RiskLink can connect you with vetted institutions already servicing regulated MSBs.
3. Emphasise Regulatory Alignment
Demonstrate alignment with UK and international compliance frameworks, including FCA registration, HMRC reporting, and adherence to FATF guidelines. Show evidence of training, audit trails, and compliance culture within your business.
4. Diversify Your Banking Structure
Consider multi-bank setups, segregated accounts, and backup payment providers to build operational resilience. Relying on a single banking partner exposes your business to unnecessary risk, especially in the high-risk sector.
5. Work with a High-Risk Banking Specialist
At RiskLink, we help MSBs and FX firms prepare bank-ready documentation, structure their risk narrative, and secure introductions to appropriate financial institutions. We speak the same language as both your compliance team and the bank’s onboarding team.
How RiskLink Helps FX and MSB Companies
- Compliance Pack Review: We review and strengthen your AML, KYC and transaction monitoring policies.
- Risk Analysis & Strategy: We identify how your model is perceived by banks and adjust your presentation accordingly.
- Bank Matchmaking: We connect you with banks open to regulated MSBs and FX businesses.
- Post-Onboarding Support: We remain involved to help you maintain compliance and adapt to regulatory changes.
Looking to improve your access to banking as a money service business or FX operator? Apply now and let us help you secure the banking infrastructure your business deserves.
For more insights into MSB strategies, read our article on High-Risk Banking Strategies for MSBs.
Frequently Asked Questions
1. Can a UK MSB open a bank account with a traditional bank?
In theory, yes—but in practice, most traditional banks decline MSB applications due to risk concerns. Your best chance is with niche or non-traditional banks experienced in the sector.
2. What documentation do banks require from an FX business?
Expect to submit your FCA registration, AML/KYC policy, company structure, ownership verification, transaction flow overview, and compliance officer credentials. RiskLink can help you prepare a complete and bank-friendly application.
