Wisconsin

Who needs to register?

Wisconsin statute requires a person who, as a service for a fee or other consideration, engages in the business as a seller of checks to apply for a license.

The statute defines a “seller of checks” as a person who, as a service or for a fee or other consideration, engages in the business of selling and issuing checks or the receiving of money for transmission or the transmitting of money, including transmitting of money to foreign countries. Further, “check” is defined as any check, draft, money order, traveler’s check, personal money order or other instrument for the transmission or payment of money.

 

Who is the regulator?

Wisconsin Department of Financial Institutions

 

What are the money transmitter license requirements?

  • Net worth of $100,000 plus positive net working capital
  • $500 application fee plus $5 for each additional location, max up to $1,500.
  • $300 nonrefundable fee to the division for investigating the application. If the investigation exceeds $300, the applicant shall, upon demand of the division, pay the excess cost.
  • Identifying information
  • Contact person and identifying information
  • List of states where applicant holds MSB license and license number
  • Location of records relating to seller of checks company
  • Date and state of incorporation, Federal Tax ID and/or Social Security Number
  • List and residences of key officers and the percentage of common stock owned by each, all 10% owners, key members and the membership interest, GP and partnership interest, partners and the ownership interest, and sole proprietors
  • Education and employment history of key officers, members, partners or owners related to seller of checks industry and business
  • Applicant background info, including: 1.) civil forfeitures, cease and desist orders, injunctions, license suspensions, denials, revocations, warnings, reprimands, enforcement actions, probation and limitation by a regulatory agency; 2.) surrenders, resignations, cancellations, denials or professional licenses or other credentials; 3.) derogatory credit over past seven years and denial of credit; and 4.) any suit, claim, or civil action over the last five years, including settlements and favorable judgments
  • Individual background information must be filled out by each key officer, member, partner or owner including: 1.) pending charges or convictions of felonies or misdemeanors; 2.) civil forfeitures, cease and desist orders, injunctions, license suspensions, denials, revocations, warnings, reprimands, enforcement actions, probation and limitation by regulatory agency; 3.) surrenders, resignations, cancellations, denials of professional licenses or other credentials; 4.) involuntary suspensions or terminations of employment; 5.) derogatory credit over past seven years and denial of credit; 6.) any suit, claim, or civil action over the last five years, including settlements and favorable judgments; and 7.) whether individual has ever been a key officer, member, partner, or owner of a company that failed or filed bankruptcy or faced disciplinary actions
  • Financial statement, including: balance sheet and income statement certified by  senior officer or a financially responsible party within 90 days of application; independent public accountant audited financial statement of the most recent fiscal year; personal financial statements for sole proprietors and partners; documentation of cash balances accounting for 20% of total assets
  • List of offices, names and addresses of authorized agents. This is not required if applicant pays a maximum $1,500 fee and files $300,000 maximum security
  • Certificate of Good standing from state of incorporation
  • Sample check, sample receipt, and sample agent authorization
  • Signed and notarized affidavit

 

What are the general bonding requirements?

Money transmitters in Wisconsin must have a surety bond of $10,000 plus an additional $5,000 for each location, not amounting to more than $300,000. The aggregate liability of the surety will not exceed the principal sum of the bond.

 

Additional resources:

Wisconsin Department of Finance Sellers of Checks Law

 

 

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.