Which of the following best defines "money service businesses" (MSBs)?

The correct definition of "money service businesses" (MSBs) is provided in the option that describes non-bank entities offering currency exchange and money transfer services. MSBs play a crucial role in the financial ecosystem by facilitating the movement of funds across borders and within domestic markets. They include businesses such as money transmitters, currency exchange offices, and check cashers.

Unlike traditional financial institutions or banks, MSBs are typically not focused primarily on investment services or providing loans. Instead, they cater to consumers who need to exchange money or transfer funds quickly, often serving populations that may not have access to conventional banking services. This characteristic distinguishes MSBs as essential players, especially in regions with a high demand for remittance and cash services.

Furthermore, MSBs are subject to regulatory oversight to combat money laundering and ensure compliance with anti-terrorism financing laws, which highlights their importance in maintaining the integrity of the financial system. Thus, the definition that emphasizes their role as non-bank entities engaging in currency exchange and money transfer encapsulates what MSBs are and what function they serve within the broader financial landscape.