Massachusetts

Who needs to register?

Under Massachusetts statute, all persons who engage or are financially interested in the business of receiving deposits of money for the purpose of transmitting the same or equivalents thereof to foreign countries must obtain a license from the Massachusetts Office of Consumer Affairs and Business Regulation.

Massachusetts exempts the following from licensing requirements: banks chartered by the Commonwealth; banks charted by the federal government or another state of the United States who are authorized to do banking business in the Commonwealth; persons doing business under sections thirty-eight to forty-three, inclusive, of chapter one hundred and sixty-seven; express companies having contracts with transportation companies for the operation of an express service upon the lines of such companies, express companies doing an international express business, global transportation companies, or telegraph companies.

 

Who is the regulator?

Massachusetts Office of Consumer Affairs and  Business Regulation

 

What are the money transmitter license requirements?

To apply as a money transmitter in the state of Massachusetts requires the following fees and documentation:

  • $,1,000 annual license fee
  • $300 investigation fee
  • Completed Massachusetts Foreign Transmittal Agency License Application, Uniform Money Service Business (“UMSB”) Form, UMSB bio statement and consent form, and UMSB branch/agent office form
  • Must appoint on-site manager for all location where foreign transmittal agency conducts business with Massachusetts customers; must be listed as a qualified individual
  • Include a bio statement for any individual who owns 25% or more of the business (a “control person”)
  • Resident/registered agents are not required for agencies that maintain a licensed office in Massachusetts
  • Business plan describing all financial products and services the applicant intends to offer in Massachusetts.  The plan should include, but is not limited to: a flow-of-funds chart and explanation; list of countries that the applicant intends to remit to; description of the settlement process, reconciliation process, and reimbursement process; a complete list of correspondents used in the deliverance of clients’ deposits to foreign countries, types of payments that will be accepted; explanation of how the applicant will ensure agent oversight; training programs implemented; description of targeted customer base; copy of anti-money laundering and compliance policies; copy of most recent independent review; proposed fee schedule and sample receipt for Massachusetts ops; corporate charter/articles of incorporation/articles of organization and operating agreement or partnership or agreement; ND authorization to do business in Massachusetts
  • Completed W-9 form

What are the general bonding requirements?

Bonding requirements for the state of Massachusetts include the greater of $50,000, or a sum equal to twice the average weekly amount of money or equivalents thereof transmitted to foreign countries by the licensee, as determined by the Commissioner of Banks.  The Commissioner may increase the bond amount at any time to an amount shown by examination to be necessary.

 

Additional resources:

Massachusetts Money Transmitter Laws

 

 

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.

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