Fintech Advice: US/EU IBANs in MENA

[littlerabbit]

Hey guys,

I’m making over $5M annually. I’m an entrepreneur, and I’ve had a fintech project in mind for years. The idea is to provide individual US and EURO IBANs to customers in the Middle East who face financial difficulties, enabling them to transfer money to relevant countries. Platforms like PayPal and many financial institutions can’t do this in these regions, and there’s significant volume and potential there.

What I’m curious about is whether I need partners like ClearBank to provide individual IBANs. I’m inexperienced in finance, though I’ve made over $5M through mobile apps. While I’m experienced in technology, I know fintech is a whole different world. I’m looking for advice from people with experience, especially regarding licensing. There are two main questions:

1. Who do platforms like ClearBank provide individual IBAN services to, and what obligations do I need to fulfill? I’ve reached out to them, but it’s been 5 days with no response—maybe they won’t take me seriously.
2. What are the different challenges of providing US and EURO individual IBANs? Do I need to pay for a license, or can I access these services by paying companies like ClearBank?

Looking forward to brainstorming and hearing from experienced folks! Thanks.

 

[daniels27]

You could reach out to www.currencycloud.com, they are among the biggest in the industry. Keep in mind, that CurrencyCloud is involved in all transactions and AML/KYC.

If you offer serices to UAE clients, you most likely will need a licence there. And I think that this is the tricky part and also the reason why there is not much competition.

https://www.amlintelligence.com/202...failings-putting-further-pressure-on-the-app/

 

[littlerabbit]

You could reach out to www.currencycloud.com, they are among the biggest in the industry. Keep in mind, that CurrencyCloud is involved in all transactions and AML/KYC.

If you offer serices to UAE clients, you most likely will need a licence there. And I think that this is the tricky part and also the reason why there is not much competition.

https://www.amlintelligence.com/202...failings-putting-further-pressure-on-the-app/

Behind closed doors, many things can happen. We have a company in the UAE, and we are planning to establish another company specifically in the fintech sector. In countries like the UAE, Turkey, Saudi Arabia, and Pakistan, there are many individuals who need US and EURO individual IBANs. As someone who has also faced this problem, I want to leverage my experience in mobile technologies to offer a simple app in the fintech space. Thank you for your contribution. I will also apply to CurrencyCloud and learn about their terms.

 

[Sols]

CurrencyCloud is probably not a good fit for this. They have limited coverage in GCC/MENA.

https://support.currencycloud.com/hc/en-gb/articles/360017599560-Permitted-Jurisdictions

You need a license in a reputable jurisdiction and you need strong relationships with banks in the target countries and in the US and EU/UK. Start by bringing in people that have banking connections.

Once you have a couple of banks onboard with the idea, it's time to get a license. Potentially, the first of many licenses. It's fortunately fairly easy to get licenses in MENA, but it's not like in for example EU where you can passport one license across the whole union.

Barclays might be a good bank to look into as they lend their platform to many fintechs and they have a risk appetite and understanding of MENA.

You're going to need to demonstrate a phenomenal AML framework, as banks in Europe and US consider Africa in particular as high risk. Budget for a very strong MLRO/Head of Compliance person, as the quality and qualifications of this person will greatly affect your chances with banking partners.