Delaware

Who needs to register?

Under Delaware statute, any check, draft, money order, personal money order or other instrument for the transmission or payment of money is considered a transmission, and any entities selling, issuing or engaging in the activity must obtain a money transmitter license.

 

Who is the regulator?

Delaware Office of the State Bank Commissioner

 

What are the money transmitter license requirements?

Registering as a transmitter in the state of Delaware requires the following fees and documentation:

  • Date, city, county, and state of incorporation
  • If widely held, resolution authorizing company’s purpose
  • Biographical information, resumes, and financial statements for Principal, Senior Officer, and all directors
  • List of stockholders with information and number of shares held; separate list of beneficial stockholders
  • Current balance sheet and income statement, and for parent company if applicable
  • Proof of registration with Delaware Division of Corporations
  • Proof of federal registration as MSB
  • Proof of service of process in Delaware
  • Criminal Actions and photocopies of legal documents
  • Disclosure of any suspensions or revocations of licenses or any disciplinary action
  • Description of activities the licensee will engage in: strategic business plan and any business other than money transmission at a location
  • List of states in which business has MSB and contact information of regulatory authority for each of those states
  • 3 letters of reference from businesses currently doing business with applicant (one must be a bank), sent directly to Office, not attached to other documents
  • Minimum net worth of $100,000
  • $172.50 investigation fee + $230 fee for each location to be licensed +$4.60 for each extra agent
  • $1,000 fee if books and records are in Delaware; $500 if books and records are outside Delaware

 

What are the general bonding requirements?

Bonding requirements for Delaware money transmitters include:

  • $25,000 surety bond or irrevocable Letter of Credit
  • $5,000 for each additional location, not to exceed $250,000
  • Expiration of bond cannot be earlier than license expiration

 

Additional resources:

Delaware Sales 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.