MONEY TRANSMITTER LICENSING
Telephone No.212.457.9797
Dilendorf law Firm assists clients that accept, hold and/or transmit digital currency and fiat with obtaining and maintaining Money Transmitter Licenses (MTLs) – the state and federal licenses required to operate as a Money Services Business (MSB).
As each U.S. state has separate MTL requirements, our lawyers advise fintech and digital currency businesses on the best MTL strategy and represent the clients throughout the concurrent MTL application procedures.
Telephone No.212.457.9797
Helping Clients Navigate Through MTL Requirements and Challenges
With limited exceptions, any business that accepts and transmits funds, including digital currency, will be considered an MSB and require an MTL in each U.S. state where the business operates. Money transmitters are a part of a broader category of MSBs. So, the terms MTL and MSB are related and often used together.
While registration on the federal level is relatively straightforward, the MSB legislation is not harmonized and almost all 53 states and territories have their own regulations, requirements and exceptions for money transmitter licensure. In addition, New York established a separate license for digital currency businesses, the so-called “BitLicense” – a license required to engage in any “virtual currency business activity”.
MTL requirements vary state-by-state but usually include registration with the Financial Crimes Enforcement Network (FinCEN), background checks, application fees, security (surety bond), maintenance of permissible investments, minimum net worth, business plan and a compliance program. MTL-related costs and processing times may differ significantly from state to state, especially compared to New York and California. The costs may exceed a $1 million, excluding legal fees, and the processing times may take from several months to 1-2 years.
Because of the lack of consistent regulation, companies tackling the U.S. MSB market must develop a comprehensive strategy to get MTLs. When obtaining MTLs, a business may choose to prioritize some states and apply first there but will be prohibited from operating in the states where it does not maintain an MTL.
Guiding Clients Through MTL Application Procedures in Every State
Our lawyers advise and assist clients throughout the MTL application process, including the following steps:
- Developing an MTL strategy nation-wide;
- Submitting applications in each of the 50 states (plus Washington, D.C. and U.S. territories);
- Preparing a business plan, summary of historical and current operations, financial statements, affidavits and other required documentation;
- Acquiring mandatory surety bonds;
- Completing FinCEN registration;
- Accomplishing necessary corporate actions, including local qualification of out-of-state companies, provision of registered agents, drafting/amending corporate governance documents;
- Developing anti-money-laundering (AML) and other compliance programs;
- Representing clients in communications with the federal and state agencies;
- Maintaining and renewing MTLs.
Recourses:
Federal
- 50-State Survey: Money Transmitter Licensing Requirements
- Definition of Money Transmitter (Merchant Payment Processor) – FinCEN
- Enforcement Actions for Failure to Register as a Money Services Business – FinCEN
- FinCEN Guidance, FIN-2019-G001 – FinCEN
- Money Services Business (MSB) Registration – FinCEN
- FAQs: Virtual Currency Business | Department of Financial Services
- Treasury’s Work to Support Money Transmitters
- State of State Money Services Business Regulation & Supervision
New York
California
- Application for a License to Engage in the Money Transmission Business
- State of California Money Transmitter Laws
- State of California – Application for a License to Engage in the Money Transmission Business
- Money – Transmitter | Frequently Asked Questions
Florida
- OFR-560-01 – Application to Register as a Money Services Business
- OFR-560-02 – Location Notification Form
- OFR-560-03 – Declaration of Intent to Engage in Deferred Presentment Transactions
- OFR-560-04 – Money Services Business Quarterly Report Form
- OFR-560-05 – Pledge Agreement
- OFR-560-06 – Money Services Business Surety Bond Form
- OFR-560-07 – Security Device Calculation Form
- Chapter 560, Florida Statutes – Money Services Businesses
- Rule 69V-560, Florida Administrative Code – Money Transmitters
- Form OFR-560-09 – Disciplinary Guidelines for Money Services Businesses
- Security Device Calculation Form
Telephone No.212.457.9797
For more information about our money transmitter licensing services,
For more information about our money transmitter licensing services,
please contact Dilendorf Law Firm by sending an email or calling us at 212.457.9797.