The definition was created to encompass more than just banks which normally provide these services to include non-bank financial institutions.
It is often used in the context of Anti Money Laundering (AML) legislation and rules.
[3] They governed by their local regulators and have to adhere with record-keeping requirements to conduct customer due diligence if customers request for an amount of foreign currency that exceeds a certain threshold set to detect money laundering.
[4] An MSB often provides an essential financial service to underdeveloped regions with limited or no banking services and may be a small organisation with outlets like grocery stores, drugstores, pharmacies or convenience stores.
It may include regional networks of post offices, banks or agents.