One of the most dangerous — and most common — mistakes in medical tourism is also one of the easiest to overlook: accepting patient money into your business account without the proper financial licensing. It might seem like a harmless part of doing business, but in reality, it can put your entire company — and your personal freedom — at risk.
Across nearly every jurisdiction, the simple act of receiving money from a patient and sending it to a hospital or clinic is considered a regulated financial activity. And if you’re not properly licensed or registered to do it, you may already be breaking the law.
Many facilitators, agencies, and even some providers operate this way without realizing how serious the consequences can be. But regulators don’t care about intent — they care about compliance. And if you’re caught on the wrong side of the law, the penalties can be swift and severe.
Why Accepting Funds Is Not “Just a Transaction”
When a patient pays you directly for medical services — whether by bank transfer, credit card, or another method — and you then forward that payment to a hospital or clinic, you are performing a function that governments classify as money transmission, remittance, or payment services. These activities require authorization under financial services laws.
It doesn’t matter if this is only a small part of your business. It doesn’t matter if you don’t describe yourself as a financial company. It doesn’t matter if you’ve been doing it for years without problems. The law looks at what you do, not what you call it.
The Legal Consequences Can Be Devastating
The penalties for unlicensed money transmission are severe and consistent worldwide:
- In the UK and EU, handling payments without authorization under the Payment Services Regulations or PSD2 is a criminal offense punishable by fines and imprisonment.
- In Canada, operating as an unregistered money services business under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act can lead to C$500,000 fines and up to five years in prison.
- In the Gulf, violating anti–money laundering laws or payment services regulations can result in prosecution, asset seizure, and business closure.
- In Latin America, authorities can freeze funds, revoke licenses, and launch civil and criminal proceedings.
- In Asia, regulators can shut down businesses and impose bans on future operations for unauthorized payment activities.
Even if you are based in one country and your clients or partners are in another, both jurisdictions’ laws may apply. A single transaction can trigger investigations in multiple countries.
How It Can Destroy Your Business Overnight
Beyond fines and criminal penalties, unlicensed payment activity can trigger cascading consequences that shut your business down almost instantly:
- Bank account freezes: Financial institutions routinely freeze accounts that show signs of unlicensed money transmission. Once flagged, it’s extremely difficult to regain access or open new accounts.
- Regulatory investigations: A single complaint or suspicious activity report can lead to audits, subpoenas, and investigations.
- Civil lawsuits: Patients can sue if funds are lost or misused. Hospitals can sue if they don’t receive payment.
- Reputational collapse: Once you’re associated with mishandled money, trust disappears — and with it, your referrals, partners, and clients.
- Partnership terminations: Hospitals and insurers will not work with facilitators or agencies under investigation for financial violations.
Many medical tourism businesses that fail don’t do so because of poor marketing or service — they collapse because of financial compliance problems they didn’t even know they had.
“We Didn’t Know” Is Not a Defense
A common misconception is that ignorance of the law offers protection. It doesn’t. Regulators worldwide apply the principle of “willful blindness” — if you should have known your actions required a license, they will treat you as if you did know.
If your business model involves accepting patient money and sending it to a hospital, you cannot claim ignorance. Even if you call the payment a “deposit,” a “coordination fee,” or anything else, regulators focus on the substance, not the label.
The Ripple Effect on Hospitals and Clinics
Hospitals and clinics aren’t immune from these risks either. If they knowingly accept funds collected through an unlicensed facilitator or intermediary, they may face liability under “aiding and abetting” or “benefiting from illegal activity” laws.
Even if no charges are filed, hospitals risk:
- Investigations by regulators or banks
- Civil suits from patients or partners
- Damage to reputation and loss of trust
- Termination of relationships with insurers and partners
Hospitals increasingly refuse to accept funds that don’t come through regulated channels — and facilitators that can’t meet those standards risk being cut out of partnerships entirely.
Protecting Your Business Before It’s Too Late
The solution is simple but urgent: stop handling patient funds directly unless you are fully licensed to do so. Instead, align your business with regulated payment systems designed for cross-border healthcare.
By removing direct payment handling from your operations, you eliminate the single biggest legal risk in medical tourism. You also increase patient confidence, strengthen your partnerships, and protect your business from the enforcement wave sweeping across global financial services.
Why Better by MTA Is the Only Sensible Solution
If your business accepts patient funds today, it’s not a question of if regulators will act — it’s a question of when. The safest and smartest way to protect your business, your reputation, and your future is to use a solution designed specifically for this industry.
That’s exactly what Better by MTA was built to do. Developed in partnership with Mastercard, Better by MTA is the first global payment platform created for medical tourism. It eliminates the risks associated with unlicensed payment handling and ensures every transaction is compliant, secure, and transparent.
Hospitals receive funds directly and safely, without exposure to legal risk. Facilitators remain focused on patient care and coordination without stepping into regulated financial territory. Patients gain confidence knowing their money is protected by one of the world’s most trusted payment networks.
Better by MTA isn’t just a tool — it’s a shield. It protects you from legal risk, builds trust with patients and partners, and positions your business as a leader in a fast-evolving industry. If you’re serious about growth and sustainability, there is no safer choice.
Visit https://better.medicaltourism.com today to learn how Better by MTA can help you stay compliant, secure your payments, and safeguard the future of your business.
