How to Establish a Money Transfer Company? 2025 Guide

The money transfer sector is a large market, especially due to remittances from citizens working abroad. In this guide, we will examine in detail the process of establishing a money transfer company.

1. What is a Money Transfer Company?

Definition

Money transfer companies are financial institutions that provide national and international money transfer services between individuals and institutions.

Service Types

• Domestic Transfer: Money transfer within Turkey
• International Transfer: International money sending
• Bulk Transfer: Salary, supplier payments
• Mobile Transfer: Transfer via mobile phone

2. Legal Process and Licensing

PTT License (Turkey)

Application Requirements

• Capital: Minimum [fiyat bilgisi kaldırıldı] paid-in capital
• Organization: At least 5 personnel
• Office: Physical office address
• Software: Money transfer system

Required Documents

✅ Company establishment documents
✅ Trade registry gazette
✅ Capital commitment document
✅ Business plan
✅ Software documentation
✅ Office lease agreement
✅ Personnel list and resumes
✅ AML/CFT procedures

Application Process

1. Application to PTT General Directorate: (1-2 months)
2. Preliminary Review: Document check (2-3 months)
3. On-site Inspection: Office and system check (1-2 months)
4. License Grant: Upon approval (total 4-7 months)

International Licenses

Western Union Agency

• Commission: 1% - 3%
• Training: 2 weeks

MoneyGram Agency

• Commission: 1% - 2.5%

Ria Money Transfer

• Commission: 0.8% - 2%

3. Technical Infrastructure

Money Transfer System

# Money Transfer System - Core Functions
class MoneyTransferSystem:
    def __init__(self):
        self.transfers = []
        self.exchange_rates = {}
    
    def create_transfer(self, sender, receiver, amount, currency):
        """Create new transfer"""
        transfer = {
            'id': generate_transfer_id(),
            'sender': sender,
            'receiver': receiver,
            'amount': amount,
            'currency': currency,
            'status': 'pending',
            'created_at': datetime.now(),
            'mtcn': generate_mtcn()  # Money Transfer Control Number
        }
        
        # AML/CFT checks
        if self.check_aml(sender, receiver, amount):
            transfer['status'] = 'approved'
            self.transfers.append(transfer)
            
            # MASAK notification (over [fiyat bilgisi kaldırıldı])
            if amount >= 10000:
                self.report_to_masak(transfer)
            
            return transfer
        else:
            transfer['status'] = 'rejected'
            return transfer
    
    def check_aml(self, sender, receiver, amount):
        """AML/CFT checks"""
        # Blacklist check
        if self.is_blacklisted(sender) or self.is_blacklisted(receiver):
            return False
        
        # Daily limit check
        daily_total = self.get_daily_total(sender)
        if daily_total + amount > 50000:  # [fiyat bilgisi kaldırıldı] daily limit
            return False
        
        # PEP (Politically Exposed Person) check
        if self.is_pep(sender) or self.is_pep(receiver):
            # Additional verification required
            return self.manual_review_required()
        
        return True
    
    def calculate_fee(self, amount, currency, destination):
        """Calculate transfer fee"""
        base_fee = 10  # Fixed fee (TL)
        percentage_fee = amount * 0.02  # 2% percentage fee
        
        # Exchange rate difference
        if currency != 'TRY':
            exchange_margin = 0.01  # 1% rate difference
            currency_fee = amount * exchange_margin
        else:
            currency_fee = 0
        
        total_fee = base_fee + percentage_fee + currency_fee
        return total_fee

Required Integrations

1. Bank Integrations

// Bank API Integration
const bankTransfer = async (data) => {
    const payload = {
        senderAccount: data.senderAccount,
        receiverIBAN: data.receiverIBAN,
        amount: data.amount,
        description: data.description,
        referenceNumber: data.referenceNumber
    };
    
    // Request to bank API
    const response = await axios.post(
        'https://api.bank.com/v1/transfer',
        payload,
        {
            headers: {
                'Authorization': `Bearer ${BANK_API_KEY}`,
                'Content-Type': 'application/json'
            }
        }
    );
    
    return response.data;
};

2. Exchange Rate API

# Fetch exchange rate
import requests

def get_exchange_rate(from_currency, to_currency):
    url = f"https://api.exchangerate-api.com/v4/latest/{from_currency}"
    response = requests.get(url)
    data = response.json()
    rate = data['rates'][to_currency]
    return rate

# Example usage
usd_to_try = get_exchange_rate('USD', 'TRY')
print(f"[fiyat bilgisi kaldırıldı] = {usd_to_try} TRY")

3. SWIFT Integration

SWIFT (Society for Worldwide Interbank Financial Telecommunication) integration is required for international transfers.

4. Security and Compliance

AML/CFT (Anti-Money Laundering / Combating the Financing of Terrorism)

Risk Assessment

def calculate_risk_score(customer):
    risk_score = 0
    
    # Age check
    if customer.age < 18 or customer.age > 80:
        risk_score += 10
    
    # Profession check
    high_risk_professions = ['jeweler', 'currency exchange', 'casino']
    if customer.profession in high_risk_professions:
        risk_score += 20
    
    # Transaction history
    if customer.total_transfers > 100000:  # Over [fiyat bilgisi kaldırıldı]
        risk_score += 15
    
    # Country risk
    high_risk_countries = ['AF', 'IR', 'KP', 'SY']  # ISO country codes
    if customer.country in high_risk_countries:
        risk_score += 30
    
    # Determine risk level
    if risk_score < 20:
        return 'LOW'
    elif risk_score < 50:
        return 'MEDIUM'
    else:
        return 'HIGH'

KYC (Know Your Customer)

• Identity Verification: ID card, passport
• Address Verification: Bill, lease agreement
• Biometric Verification: Face recognition, fingerprint
• Video KYC: Verification via live call

5. Product Features

Customer Application (Mobile App)

✅ Quick money sending
✅ Money receiving via MTCN
✅ Exchange rate calculation
✅ Transfer history
✅ Favorite recipients
✅ Transfer via QR code
✅ Push notifications

Agent Panel

✅ Transfer operations
✅ Customer registration
✅ KYC verification
✅ Daily report
✅ Commission tracking
✅ Cash management

Admin Panel

✅ Agent management
✅ Transaction tracking
✅ Risk management
✅ MASAK notifications
✅ Financial reports
✅ Exchange rate management

6. Revenue Models

Transfer Fees

| Transfer Amount | Fee | |-----------------|-----|

Exchange Rate Difference

• Bid-Ask Spread: 1% - 2%

Agent Commissions

• Domestic Transfer: 20% - 30%
• International Transfer: 30% - 50%
• Currency Transactions: 40% - 60%

7. Cost Analysis

Initial Costs

|------|----------| | Capital (PTT Requirement) | 500,000 | | Software Development | 300,000 - 800,000 | | License & Consulting | 100,000 - 300,000 | | Office & Equipment | 100,000 - 300,000 | | Western Union Agency | 150,000 - 450,000 | | Marketing | 50,000 - 200,000 | | TOTAL | 1,200,000 - 2,550,000 |

Monthly Operating Costs

8. Successful Examples

Western Union

• Founded in 1851
• Service in 200+ countries
• 500,000+ agent points

MoneyGram

• Founded in 1940
• Service in 200+ countries
• 350,000+ agent points

Examples from Turkey

• PTT: Largest money transfer network
• Ziraat Bank: 1,800+ branches
• Akbank: Fast money transfer

9. Marketing Strategies

Target Audience

• Turkish citizens working abroad
• Foreign workers
• E-commerce companies
• Freelancers

Marketing Channels

• Social Media: Facebook, Instagram, TikTok
• Google Ads: "money transfer", "send money abroad"
• Influencer Marketing: Turks living abroad
• Referral Program: Bring a friend, earn bonus

10. Common Challenges

❌ High Competition: Giants like Western Union, MoneyGram
❌ Low Profit Margin: 1-3% commission
❌ Regulation: AML/CFT compliance
❌ Fraud Risk: Fake identity, stolen cards
❌ Exchange Rate Risk: Sudden rate changes

11. Cesa Software Solutions

As Cesa Software, we offer turnkey money transfer system solutions:

✅ Money transfer software
✅ Mobile application (iOS & Android)
✅ Agent panel
✅ Admin panel
✅ Western Union/MoneyGram integration
✅ SWIFT integration
✅ AML/CFT compliance
✅ MASAK notification system
✅ PTT license consulting
✅ 24/7 technical support

Contact

📞 Phone: +90 850 225 53 34
📧 Email: iletisim@cesayazilim.com
🌐 Web: https://cesayazilim.com

Conclusion

Establishing a money transfer company is a profitable business model, especially in countries like Turkey with a high number of citizens working abroad. However, professional support is recommended due to the license process, security, and compliance requirements.

Important: Before obtaining a money transfer license, have a preliminary meeting with PTT and fulfill all legal requirements.

Frequently Asked Questions

What license is required to establish a money transfer company?

To establish a money transfer company, you need a PTT (Post and Telegraph Organization) license in Turkey. The license process involves meeting capital requirements, security measures, compliance with AML/CFT regulations, MASAK notification, and approval from relevant authorities. Requirements vary by country.

What is the minimum capital requirement for a money transfer company?

Capital requirements vary by jurisdiction. In Turkey, money transfer companies typically need significant capital (often 1-5 million TL or more) depending on transaction volumes and risk profile. International operations may require higher capital. Consult with regulatory authorities for specific requirements.

How long does it take to establish a money transfer company?

The establishment process typically takes 6-12 months depending on license approval, company registration, compliance setup, technical infrastructure, and partnership agreements. PTT license approval can take 3-6 months after submitting all required documents and meeting requirements.

What are the main legal requirements for money transfer companies?

Main legal requirements include PTT license (or equivalent regulatory approval), MASAK notification (AML/CFT compliance), KYC/AML systems, capital adequacy, security infrastructure, transaction monitoring, reporting obligations, and ongoing regulatory compliance. Requirements vary by jurisdiction.

What is MASAK notification and why is it required?

MASAK (Financial Intelligence Unit) notification is mandatory for money transfer companies to comply with anti-money laundering and combating financing of terrorism regulations. Companies must implement KYC/AML systems, report suspicious transactions, and maintain transaction records as required by law.

Can I operate internationally with a money transfer license?

International operations require licenses or partnerships in each target country. Many companies partner with established international money transfer networks (Western Union, MoneyGram) or obtain licenses in multiple jurisdictions. Each country has different regulatory requirements for money transfer services.

What security measures are required for money transfer companies?

Required security measures include secure payment systems, encryption, fraud detection, transaction monitoring, KYC/AML verification, secure data storage, compliance systems, and regular security audits. Security infrastructure must meet regulatory standards and protect customer funds and data.

How do money transfer companies make money?

Money transfer companies generate revenue through transaction fees (percentage of transfer amount), exchange rate margins, service fees, and volume-based pricing. Fees vary by transfer amount, destination, speed, and service type. Competitive pricing is important for market success.

What technology is needed for a money transfer company?

Required technology includes payment processing systems, KYC/AML verification systems, transaction monitoring, secure databases, mobile apps, web platforms, API integrations, fraud detection, compliance reporting, and security infrastructure. Professional software development is typically required.

How much does it cost to establish a money transfer company?

Total costs include license fees, capital requirements (1-5M+ TL), legal and consulting fees (500K-2M TL), software development (1M-5M TL), security infrastructure (500K-2M TL), partnership agreements, and ongoing operational costs. Professional support can help optimize costs and ensure compliance.

Tags: #MoneyTransfer #Remittance #WesternUnion #MoneyGram #Fintech #PTT