Who needs to register?
Under D.C. statute, those who conduct business at a location within the U.S. or to locations abroad or through an authorized delegate operating at a location in D.C. must have a business location in the District. Those who engage in the sale or issuance of payment instruments or engage in the business of receiving money for transmission or transmit money must obtain a money transmitter license in the District.
Who is the regulator?
Washington D.C. Department of Insurance, Securities and Banking
What are the money transmitter license requirements?
Registering as a money transmitter in D.C. requires the following fees and documentation:
- Must have a business location in D.C.
- Certified resident agent
- Location of books and records
- List of other similar licenses
- Description of money transmitting activity
- FinCEN registration number
- Whether applicant owes $100 or more for violations of the Litter Control Administrative Act, the Illegal Dumping Enforcement Act, the Civil Infractions Act, past due taxes, past due DC Water and Sewer Authority Services fee, or past due traffic tickets
- List of conviction for crimes involving moral turpitude, fraud, misrepresentation, deceit, or misuse of funds
- Civil actions in the last 10 years
- Whether applicant was refused coverage under fidelity or surety bond
- Bankruptcy proceedings
- Any administrative actions or discipline
- Financial statements
- Tax Registration certificate
- Material litigation involving officers or owners of 10% of equity 5 years preceding application
- Proposed authorized delegates, locations and contract
- Sample transmittal instruments
- History of operations and description of activities
- Name and address of clearing bank or banks
- SEC filings
- $100,000 net worth plus $50,000 for each additional location, not amounting more than $500,000
- $500 application fee +$25 for each location in D.C. not to exceed a maximum of $2,500
- If an investigation is conducted, the fee is $60 an hour per person plus travel time and reasonably incurred costs
Note: Waivers may be obtained by application to waive certain license requirements, or to waive permissible investments.
Bonding requirements for D.C. money transmitters include:
- $50,000 surety bond
- $10,000 additional surety bond for each location, not to exceed a maximum of $250,000
- Money transmitters may request substitutions to surety bond that will be reviewed by the Department.
- In lieu of the security device, the licensee may deposit with the Superintendent, or with such banks in the District of Columbia as the licensee may designate and the Superintendent may approve cash, interest-bearing stocks and bonds, notes, debentures or other obligations:
- (A) of the US;
- (B) Of any agency or instrumentality of the US;
- (C) Guaranteed by the US;
- (D) Of the District of Columbia; or
- (E) Guaranteed by the D.C., in an aggregate amount, based upon the lower of principle amount or market value of note less than the amount of the security device or portion thereof.
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.