Who needs to register?
Under Arizona statute, the following must obtain a money transmitter license in Arizona, whether they are located or doing business in the state:
- Those selling or issuing payment instruments;
- Transmitting money;
- Advertising, soliciting, engaging in or holding itself out as being in the business of receiving money for the further transmission of money;
- Receiving money for obligors, with the purpose of paying or receiving money for the purpose of paying the obligor’s bills, invoices, or accounts
Those who knowingly transmit money into Arizona or make payments in Arizona without disclosing the identity of each person on whose behalf money was transmitted or payment was made must register for engaging in business transmission activity.
If additional business locations are located under control of a licensee, rather than authorized delegates, a separate “branch license” must be obtained.
Who is the regulator?
Arizona Department of Financial Institutions
What are the money transmitter license requirements?
To apply as a money transmitter requires the following fees and documents:
- Copies of articles of incorporation; a list of all trade names or fictitious names used by the applicant and other information concerning the corporate status of the company; company information; intended places of transactions within Arizona; list of authorized delegates; statement of history for each executive officer, director, and controlling person. (Note: not required if publicly traded with assets greater than $400 million.)
- Identification statement for each branch manager or person responsible including general information, employment history, residential addresses for preceding 15 years, SSN, and any non-traffic criminal convictions.
- Identification of any account in any financial institution used for the business
- Financial statement and balance sheet audited by an independent accountant
- Disclosure of any convictions or material litigation
- List of proposed authorized delegates and their locations
- Documents proving a net worth of at least $100,000 + $50,000 for each additional location or delegate (Note: maximum required net worth is $500,000. However, if the business conducts more than $500,000 in transactions that involve transmitting money in an amount of $1,000 or more during preceding year, an additional net worth shall be maintained not less than 10% of total such transactions conducted in the state up to $500,000.)
- Fingerprint cards, $25 each
- Copy of FinCEN registration
- Copy of operations policies and procedures
- Copy of compliance manual and biographical and consent form of compliance officer
- Copy of risk assessment
- Copy of independent review
- Ownership flowchart and personal financials for 15% owners
- Certificate of good standing
- Foreign authority to do business in Arizona
- List of licenses held, refused, or revoked in other states
- $1,500 application fee plus $25 for each branch office and authorized delegated to a maximum of $4,500
- $500 application fee for a branch office
What are the general bonding requirements?
Bonding requirements for Arizona vary depending on the number of delegates and locations of money transmitter sites. Cash or cash alternatives may be used in lieu of bond.
Transmitters with 5 or less delegates and locations: $25,000 bond
Transmitters with 6 – 20 delegates and locations: $100,000 bond
Transmitters with 21 – 200 delegates and locations: $5,000 extra for every delegate or location, not to exceed $250,000
Transmitters with more than 201 or more delegates ad locations: $5,000 extra for every delegate or location, not to exceed $500,000