Who needs to register?
Under Alaska statute, money transmitters may undergo a different application process in Alaska if already registered in a state that adopts the Model Code. Paperwork must be filed as proof of such registration and fees will still apply.
Otherwise, any person engaged in the business of money transmission, or who advertises, solicits, or holds out to be a provider of money transmission must obtain a money transmitter license with the state.
Who is the regulator?
Alaska Department of Commerce, Community, and Economic Development
What are the money transmitter license requirements?
In Alaska, registration requirements differ depending on whether the money transmitter provides general or corporate services. Regardless of type, registering as a money transmitter in Alaska requires the following fees and documentation:
- $500 application fee + $100 for each additional location
- $500 license fee + $50 for each additional location
- License history in other states
- List of delegates conducting activities in Alaska (including contact information and Alaskan business license number)
- Sample of an authorized delegate contract
- Description of money transmission services to be provided
- Proof of FinCEN registration
- History of criminal convictions or material litigation within last 10 years of application. History of those with ownership interest in application.
- Sample of payment instrument
- Names and addresses of banks through which payment instruments and stored value will be paid. Description of the source of money and credit to be used by applicant to provide money services.
- Documents establishing minimum net worth of $25,000
- List of type and amount of permissible investments, no less than the aggregate face amount of all outstanding payment instruments and stored value issued or sold by licensee in the US
- Information concerning bankruptcy receivership affecting applicant
- Information for those responsible for licensed activities
- Documentation indicating place and date of applicant’s registration and qualifications to do business in Alaska
- Audited financial data
- State regulator questionnaire
General money transmitter
Registering as a general money transmitter requires the following additional documentation:
- Information for each principle as provided in the Model Code for the last 10 years
- Documentation indicating the place and date of registration and qualifications to do business in Alaska
- Ownership or supervisory individual information and history for the past 10 years
- Financial data
Corporate money transmitter
Registering as a corporate money transmitter requires the following additional documentation:
- Corporate information as provided in the Model Code for the last 5 years
- Contact information of each officer, key shareholder, and officer or manager in charge of licensed activities (including employment history, convictions, and litigation).
- Audited financial statements for preceding two years of corporate, subsidiary, or international parent company.
- Copies of SEC filings
What are the general bonding requirements?
Bonding requirements for Alaskan money transmitters include:
- $25,000 surety bond, Letter of Credit, or similar security
- $5,000 for each additional location, not exceeding an additional $125,000
- Department may increase security to a maximum of $500,000 if the financial condition of the licensee so requires
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.