In this episode of FinTech Layer Cake, host Reggie Young speaks with Evan Minsberg, Partner at Morrison Foerster, about the nuanced world of money transmission licenses (MTLs). Evan explains what MTLs are, why fintechs need them, and the trade-offs between pursuing a license, partnering with a bank, or using alternative models. He also unpacks the hidden costs, both in dollars and time, behind getting licensed, and how fintechs can think strategically about when it makes sense to pursue one.

From agent-of-payee exemptions to the risks of operating without proper licenses, Evan offers a practical primer for founders navigating regulatory quicksand. He also shares trends in state-level adoption of the Money Transmission Modernization Act (MTMA), rising anti-money laundering scrutiny, and myths about “FBO” (aka, “BOBA”) accounts. Whether you’re building a payments product, exploring embedded finance, or just trying to future-proof your business, this conversation is packed with insights you won’t want to miss.