[Glossary](https://blnkfinance.com/glossary) Money transmission # What is money transmission? Money transmission Money transmission is receiving customer funds and paying them out to someone else, or holding them in between. Many countries license that activity. An FBO or safeguarding structure is how teams avoid becoming the transmitter themselves. The ledger is how you prove you did not mix those funds with your own. ## How does money transmission show up in a product? You take a deposit, you hold a wallet, you pay a beneficiary. That path is transmission unless an exemption or a bank partnership says otherwise. Passing a card charge straight to a seller with no hold can be different. The moment you owe the customer a balance, you are in the conversation. ## Money transmission vs the ledger The license is a legal status. The ledger is the evidence. Regulators ask who owns the pot and whether your books match. A clean FBO with a messy wallet map still fails. A precise book does not grant a license. ## What do you build first? Separate client money from operating cash, KYC before live balances, and recon to the bank. Those three are the product. The license is the conversation you have with counsel about that product. ## How it works with Blnk Keep customer funds on a client-money or FBO pot and wallets that roll up to it. Keep company cash on a different internal balance. See [internal balances](https://docs.blnkfinance.com/balances/internal-balances) and [reconciliation](https://docs.blnkfinance.com/reconciliations/overview). Related terms - [FBO account](https://blnkfinance.com/glossary/fbo-account) - [Wallet](https://blnkfinance.com/glossary/wallet) - [KYC](https://blnkfinance.com/glossary/kyc) - [Client money account](https://blnkfinance.com/glossary/client-money-account) - [Ledger](https://blnkfinance.com/glossary/ledger)