Texas

Who needs to register?

Under Texas statute, a person may not conduct money transmission for people located in Texas or receive money or monetary value for transmission by any means, including by payment instrument, wire, facsimile, electronic transfer, or ACH debit without obtaining a money transmitter license.

 

Who is the regulator?

Texas Department of Banking

 

What are the money transmitter license requirements?

To apply as a money transmitter in Texas requires the following fees and documentation:

  • The legal name and residential and business address of the applicant and each principal of the applicant
  • The taxpayer identification number, social security number, the driver’s license number, or other identifying information the Commissioner requires
  • Complete set of fingerprints for criminal background investigation
  • Familiarity and compliance with all applicable state and federal laws
  • Proof that applicant has not within the preceding three years failed to file a currency transaction or suspicious activity report, as required by the Bank Secrecy Act, the USA Patriot Act, or Chapter 271, or has not knowingly accepted money for transmission or exchange in which the money was derived from an illegal transaction or activity
  • Commissioner may waive an application requirement or permit the submission of substituted information at his or her discretion
  • Application fee of $2,500
  • A minimum net worth of $100,000 for four or fewer locations; $500,000 for five or more locations
  • Commissioner has discretion to increase the minimum net worth requirement up to $1,000,000

 

What are the general bonding requirements?

General bonding requirements include a $300,000 surety bond or an amount equal to 1% of the license holder’s total yearly dollar volume of money transmission business in the state or the applicant’s projected total volume of business in Texas for the first licensed year. The amount cannot exceed more than $2,000,000. When the amount of the required security exceeds $1,000,000, the applicant or license holder must provide security in the amount of $1,000,000, plus a dollar for dollar increase in the net worth of the applicant or license holder over the amount required by law, not amounting more than $2,000,000.

 

Additional resources:

Texas Money Services 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.