Who needs to register?
Under Virginia statute, those who are selling money orders or engaging in the business of money transmission, whether or not they are physically located in Virginia, must obtain a money transmitter license. Money transmission is defined as receiving money or monetary value for transmission by wire, facsimile, electronic means or other means or selling or issuing stored value.
Who is the regulator?
Virginia Bureau of Financial Institutions
What are the money transmitter license requirements?
To apply as a money transmitter in Virginia, the applicant must fill out a form including:
- FinCEN registration
- Organizational chart
- Financial Documents: Audited financial report (if startup, audited startup balance sheet and pro-forma balance sheet and income statement for one year of Virginia business); most recent in-house month-end balance sheet and year-to-date income statement
- Business Plan: mode of operation; description of company, products, services, target market, marketing strategy, management team; staffing and internal organization policies systems and procedures; how money will be transferred and copies of all agreements with banks and 3P vendors; compliance with Patriot Act and AML laws; compliance officer
- Copy of most recent AML/BSA compliance review
- Sample payment instrument + sample receipt
- Projected month sales volume ($) for first two years
- Fee schedule for Virginia
- Personal Financial Report and Disclosure Statement for each director, senior officer, member, trustee, partner, and 10% equity owner and limited financial report for outside directors
- Spouse must cosign if assets/liabilities jointly held
- Must attach separate financial statement for any business that makes up 25% or more of financial worth
- Financial Information: Assets and liabilities; contingent liabilities; statement of income; marketable securities; real estate owned; business interests; other assets; notes payable to banks; other notes payable; mortgages payable; other debts and liabilities;
- Personal Information: date and place of birth and citizenship; residence and length of time at residence; SSN; Marital Status and spouse’s name; trade names; civic, professional, social, or other organizations; resume
- List all bank, savings institution, or any other financial institution deposit or loan relationships you have had in the past five years
- History: ten years civil judgments; litigation/judgments involving fraud or dishonesty; convictions/no contests to felonies; convictions/no contests to misdemeanors involving theft, fraud, dishonesty; bankruptcy/receivership history (individual and companies where applicant holds 25%); refusals, suspensions, or revocations of licenses to engage in business by state/federal agency; discharges or requested resignations; history as senior officer or director of institution that went through closing, reorganization, merger as result of state/federal supervision and personal tenure consequences; formal/informal investigations/admin proceedings
- Employment and Business Affiliation Disclosure form for same people
- Authorization forms for reference from bank/depository institution with which the applicants or critical individuals have had deposit accounts for at least one year
- Application fee of $1,000
- Minimum net worth, determined by the Commissioner, ranging from $200,000 to $1,000,000
- $1,000 application fee
What are the general bonding requirements?
Bonds are determined by the Commissioner, but range from $25,000 to $1,000,000.
Virginia Money Order Sellers and Money Transmitters Code
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.