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
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.