New York

Who needs to register?

Under New York statute, those engaging in the business of selling or issuing checks, or receiving money for transmission or transmitting money, must obtain a money transmitter license.

 

Who is the regulator?

New York Department of Financial Services

 

What are the money transmitter license requirements?

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

  • Applicant’s name, address, federal Taxpayer Identification Number, date and place of incorporation.
  • Information regarding history of applicant and business
  • Information regarding principal officers, directors, and 10% equity security owners
  • Information regarding operations, including the jurisdictions in which the applicant proposes to operate, the mode of operation for conducting transmissions, and a written submission of the applicant’s general procedures for entering into agency contracts to engage in money transmission in New York
  • An alphabetical listing of agents in New York, showing full names and addresses and assigned identification number
  • A specimen copy of the proposed agency contract between the applicant and its agents
  • Information disclosing any legal proceedings, criminal or civil, brought against the applicant, director, principal officer, or 10% equity security officer
  • Information regarding financial statements for two fiscal years of operation before application
  • Projection for the two years of operation in New York, including quarterly receipts and the expected number of transmissions, a pro forma balance sheet and profit and loss statement of retained earnings
  • Documentation of an anti-money laundering program that complies with federal anti-money laundering laws
  • Fingerprints for every applicable partner, officer, director, stockholder and owner of an applicant for all individuals not currently employed by a licensee
  • Background investigation reports
  • FinCEN registration, confirming registration as a Money Services Business

 

What are the general bonding requirements?

Bonding requirements in the state of New York are determined by the superintendent, but do not exceed $500,000.

 

Additional resources:

Transmitters of Money 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.