Alabama Money Transmitter Laws

Who needs to register?

Under Alabama statute, all entities selling, issuing, dispensing money, or receiving money as an agent, must obtain a money transmitter license in the state.

 

Who is the regulator?

Alabama Securities Commission

 

What are the money transmitter license requirements?

Registering as a general money transmitter in Alabama requires the following fees and documentation:

  • Background information: state of incorporation, location of principal office, director, officer, and member information
  • Location of all offices and agencies
  • $250 investigative fee
  • $250 licensing fee + $5 for each additional location within state, not amounting to more than $500.
  • Most recent audited financial statements, proving a net worth exceeding $5,000
  • History of money transfer business within Alabama and other states
  • Documents detailing officers’, managing partners’, and principals’ experience with operating money transmitters
  • Details of other business activities
  • Complete list of Alabama business activities, clients, and periods of operation within Alabama
  • Disciplinary history for last 10 years
  • Documents outlining procedures for receiving money, confirming receipt, safeguarding money, and transmitting money to its designated location
  • Name and address of any separate bank account used for deposit and transmission
  • List of five business references

 

What are the general bonding requirements?

Bonding requirements for Alabama money transmitters include:

  • $10,000 surety bond
  • $5,000 for each additional location, office, or agency within Alabama
  • Up to a maximum of $50,0000
  • The Commission may at any time increase bond requirements if it believes it is necessary to protect the public, but it still may not exceed $50,000.

 

Additional resources:

Alabama Sale of Checks 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.

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