Who needs to register?
Under Nevada statute, a person must obtain a money transmitter license if such person is engaged in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits.
“Check” is defined as any draft, money order or instrument used for the transmission or payment of money. It does not include traveler’s checks.
Who is the regulator?
Nevada Division of Financial Institutions
What are the money transmitter license requirements?
To apply as a money transmitter requires the following fees, documents, and qualifications:
- Applicant must be 21 and a U.S. citizen or lawfully able to work in the U.S.
- Money received for the purpose of transmission must be remitted to licensee or deposited with a bank or credit union authorized to do business in the state the third business day after receipt
- $375 application fee, $300 fee to commissioner
- $300 annual assessment for examination costs
- Identifying information
- Name, age, percent ownership, and address if a partnership or association
- State and date of incorporation
- List of directors or trustees, home and business addresses or same of parent company
- Name, address, number of shareholders, percent ownership of any individual owning 20% or more
- Refusals, revocations, and suspensions of money transmitter licenses or similar instruments of applicant or business that officer, director, principal stockholder, or other principal was associated with
- Certified financial statement of last fiscal year and identification of funds held in money order account and outstanding money order liabilities (if not in financial statements)
- Proposed Nevada locations and description of any other business at these locations
- Copy of business plan for Nevada operation including sample instruments
- Schedule of locations where licensee’s checks and/or bank statement which, after payment, are returned through banking channels or otherwise for verification, reconciliation or accounting
- Banks where funds received from transmissions will be deposited
- Copy of confirmation of registration with FinCEN as a Money Services Business
- Complete set of fingerprints for anyone required to submit a personal history record and written permission authorizing the sending out of cards for report
What are the general bonding requirements?
Bonding requirements for money transmitters in the state of Nevada include a $10,000 surety bond plus an additional $5,000 bond for each location, not amounting to more than $250,000.
Issuers of Instruments for Transmission or Payment of Money
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.