Colorado

Who needs to register?

Under Colorado statute, businesses receiving money for transmission or transmitting money must obtain a money transmitter license in Colorado.

 

Who is the regulator?

Colorado Division of Banking and Colorado State Banking Board

 

What are the money transmitter license requirements?

To apply as a money transmitter requires the following documents and fees:

  • Interagency Biographical and Financial Report for firm and principal shareholders, directors, and executive officers, including: 1) employment record for last 5 years; 2) education and professional credentials; 3) business and banking affiliates; 4) legal and related matters; 5) financial statements; 6) contingent liabilities; 7) market securities, notes receivable, real estate, proprietary interests, other assets, notes payable, and other liabilities
  • Fingerprint cards for anyone with responsibility for licensed activities
  • History of operations
  • Sample agent contract and form of payment instrument
  • Name and address of clearing bank(s) on which payment instruments will be payable
  • Flow chart of money movements from customer to final beneficiary or recipient
  • Organizational structure and chart
  • Most recent audited financial statements, and if available, previous 2 years annual statements; if subsidiary, provide statements for parent company
  • Copy of any SEC filings
  • Certificate of good standing from state of incorporation
  • List of states that company is licensed in and address of business
  • List of locations where licenses were denied or revoked
  • Documents detailing any bankruptcy proceedings
  • Minimum net worth equal to outstanding payments
  • License fees vary depending on time of registration. Firms registering from January 1 to June 30 pay $7,600; firms registering from August 1 to December 31 pay $3,750.

 

What are the general bonding requirements?

California money transmitters must have a $1,000,000 in a surety bond or securities. The banking board can raise or reduce this number on a discretionary basis.  Securities used in lieu of a surety bond must be rated the highest grades by nationally recognized ratings organizations.

 

Additional resources:

Colorado Money Transmitter 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.