Who needs to register?
Under Vermont statute, those engaging in the business of selling or issuing payment instruments, selling or issuing stored value, or receiving money or monetary value for transmission to a location within or outside the U.S. must obtain a money transmitter license.
Who is the regulator?
Vermont Department of Financial Regulation
What are the money transmitter license requirements?
Registering as a money transmitter in the state of Vermont requires the following fees and documentation:
- Legal name, residential and business address of the applicant
- List of any criminal convictions or material litigation in which the applicant has been involved over the previous 10 year period
- Description of any money services previously provided by the applicant and the money services that the applicant seeks to provide in Vermont
- A list of the applicant’s proposed authorized delegates, the locations in the state where the applicant is, and proposed services
- List of other states in which the applicant is licensed to engage in money transmission or provide other money services, and any information concerning any bankruptcy or receivership proceedings affecting the licensee
- Sample form of contract for authorized delegates, if applicable, and a sample form of payment instrument upon which stored value is recorded
- Name and address of any financial institution through which stored value is recorded if applicable
- Name and address of any financial institution through which the applicant’s payment instruments and stored-value obligations will be paid
- Description of the source of money and credit to be used by the applicant to provide money services
- Any other information the commissioner requires with respect to the applicant
- Minimum net worth of $100,000
- Non-refundable application fee of $1,000
Corporate Money Transmitter Requirements
Additionally, if the applicant is a corporation, limited liability company, partnership or other entity, the applicant must provide:
- The date of the applicant’s incorporation or formation, and state or country of incorporation or formation
- A certificate of good standing from the state or country in which the applicant is incorporated or formed
- A brief description of the structure or organization of the applicant, including any parent or subsidiary of the applicant and whether the parent or subsidiary is publicly traded
- The legal name, any fictitious or trade name, of all business and residential addresses, and the employment in the 10-year period next preceding the submission of the application of each executive officer, manager, director of, or person that has control of, the applicant
- A list of any criminal convictions, material litigation or disciplinary actions in which any executive officer, manager, director of, or individual in control of the applicant has been involved in the 10-year period preceding the submission of the application
- A copy of the applicant’s audited financial statements for the most recent fiscal year and, if available, for the two-year period next preceding the submission of the applicant
- A copy of the applicant’s unconsolidated financial statements for the current year, whether audited or not, and for the two year period preceding submission of application
What are the general bonding requirements?
General bonding requirements in the state of Vermont include a $100,000 surety bond, plus $10,000 for each additional location, not amounting to more than $500,000. The Commissioner has discretion to increase the bond to a maximum of $2,000,000.
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.