New Mexico

Who needs to register?

Under New Mexico statue, those engaging in the business of selling or issuing payment instruments, stored value or receiving money or monetary value for transmission, must obtain a money transmitter license.

 

Who is the regulator?

New Mexico Regulation and Licensing Department

 

What are the money transmitter license requirements?

To apply as a New Mexico money transmitter requires the following fees and documentation:

  • Net worth requirements: 1-4 locations = $100K; 5 or more locations = $500K
  • Legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business; a list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the ten-year period next preceding the submission of the application; a description of any money services previously provided by the applicant and the money services that the applicant seeks to provide in New Mexico; a list of the applicant’s proposed authorized delegates and the locations in New Mexico where the applicant and its authorized delegates propose to engage in money transmission or provide other money services; a list of other states in which the applicant is licensed to engage in money transmission or provide other money services and any license revocations, suspensions or other disciplinary action taken against the applicant in another state; information concerning any bankruptcy or receivership proceedings affecting the applicant; a sample form of contract for authorized delegates, if applicable, and a sample form of payment instrument or instrument upon which stored value is recorded, if applicable; the name and address of any bank through which the applicant’s payment instruments and stored value will be paid; a description of the source of money and credit to be used by the applicant to provide money services; and any other information the director reasonably requires with respect to the applicant.
  • In order to fulfill the purposes of the Uniform Money Services Act, the director may establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities designated by the nationwide mortgage licensing system and registry to collect and maintain records and process transaction fees or other fees related to applicants or other individuals subject to that act.
  • In connection with an application for licensing pursuant to Article 2 of the Uniform Money Services Act, the applicant shall, at a minimum, furnish to the nationwide mortgage licensing system and registry the following information in a form and medium prescribed by the nationwide mortgage licensing system and registry:
    • (1) the applicant’s history and experience; and
    • (2) an authorization for the nationwide mortgage licensing system and registry and the director to obtain:
      • (a) an independent credit report; and
      • (b) information related to any administrative, civil or criminal findings by any governmental jurisdiction.
  • If an applicant is a corporation, limited liability company, partnership or other entity, the applicant shall also provide:
    • (1) the date of the applicant’s incorporation or formation and the state or country of incorporation or formation;
    • (2) if applicable, a certificate of good standing from the state or country in which the applicant is incorporated or formed;
    • (3) a brief description of the structure or organization of the applicant, including any parent or subsidiary of the applicant, and whether any parent or subsidiary is publicly traded;
    • (4) the legal name, any fictitious or trade name, all business and residential addresses and the employment in the ten-year period next preceding the submission of the application of each executive officer, manager, director or person that has control of the applicant;
    • (5) a list of any criminal convictions and material litigation in which any executive officer, manager, director or person in control of the applicant has been involved in the ten-year period next preceding the submission of the application;
    • (6) a copy of the applicant’s audited financial statements for the most recent fiscal year and, if available, for the two-year period next preceding the submission of the application;
    • (7) a copy of the applicant’s unconsolidated financial statements for the current fiscal year, whether audited or not, and, if available, for the two-year period next preceding the submission of the application;
    • (8) if the applicant is publicly traded, a copy of the most recent report filed with the United States securities and exchange commission pursuant to Section 13 of the federal Securities Exchange Act of 1934;
    • (9) if the applicant is a wholly owned subsidiary of:
      • (a) a corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation’s most recent report filed pursuant to Section 13 of the federal Securities Exchange Act of 1934; or
      • (b) a corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation’s domicile outside the United States;
    • (10) if the applicant has a registered agent in New Mexico, the name and address of the applicant’s registered agent in New Mexico; and
    • (11) any other information the director reasonably requires with respect to the applicant.
  • A nonrefundable application fee of two thousand dollars ($2,000) and a nonrefundable license fee of two thousand dollars ($2,000) shall accompany an application for a license pursuant to Article 2 of the Uniform Money Services Act. The application shall also be accompanied by the surety bond or other security required by Section 203 of the Uniform Money Services Act.
  • The director may waive one or more requirements of Subsection C or D of this section or permit an applicant to submit other information in lieu of the required information.
  • As used in this section, “material litigation” means litigation that, according to generally accepted accounting principles, is significant to an applicant’s or a licensee’s financial health and would be required to be disclosed in the applicant’s or licensee’s annual audited financial statements, report to shareholders or similar records.

 

Additional Resources:

New Mexico Business Selling Negotiable Checks, Drafts and Money Orders 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.