Who needs to register?
Under Alabama statute, all entities selling, issuing, dispensing money, or receiving money as an agent, must obtain a money transmitter license in the state.
Who is the regulator?
Alabama Securities Commission
What are the money transmitter license requirements?
Registering as a general money transmitter in Alabama requires the following fees and documentation:
- Background information: state of incorporation, location of principal office, director, officer, and member information
- Location of all offices and agencies
- $250 investigative fee
- $250 licensing fee + $5 for each additional location within state, not amounting to more than $500.
- Most recent audited financial statements, proving a net worth exceeding $5,000
- History of money transfer business within Alabama and other states
- Documents detailing officers’, managing partners’, and principals’ experience with operating money transmitters
- Details of other business activities
- Complete list of Alabama business activities, clients, and periods of operation within Alabama
- Disciplinary history for last 10 years
- Documents outlining procedures for receiving money, confirming receipt, safeguarding money, and transmitting money to its designated location
- Name and address of any separate bank account used for deposit and transmission
- List of five business references
What are the general bonding requirements?
Bonding requirements for Alabama money transmitters include:
- $10,000 surety bond
- $5,000 for each additional location, office, or agency within Alabama
- Up to a maximum of $50,0000
- The Commission may at any time increase bond requirements if it believes it is necessary to protect the public, but it still may not exceed $50,000.
Alabama Sale of Checks Act
Disclaimer: Information provided by Shipkevich, PLLC and any of its affiliated web pages is for general educational purposes only, and should not be taken as legal advice.