Picture this scenario: You turn 18, and are eager to get a driver’s license Well in order for that to happen, you go through driving school and then on the final day, you go and give your driver’s exam and you pass!
Woot! Now with your license in one hand and money in another, you go to the market to lease a car. Things are looking beautiful…. until the unthinkable happens.
The car leasing company decides not to lease you a car. You’re a risk they say. No worries. Your ego is slightly deflated, but you head on to the next one.
Same answer. Sorry, we don’t lease cars to your kind.
Next car leasing company. Same answer. No! We cannot lease a car to you!
Next car leasing company. Same Answer. No.
Shampoo. Rinse. Repeat.
This is what has been happening with the money services business (MSB) industry for the past couple of years. As a bonafide business, you are portrayed as the bogeyman and you will frighten the children away.
Simple answer. They define you as risky. Hence, they, the bank, de-risks you. Thus you are denied access to banking.
You can thank Operation Choke Point for this and the snowball effect it created.