Who needs to register?
Under Colorado statute, businesses receiving money for transmission or transmitting money must obtain a money transmitter license in Colorado.
Who is the regulator?
Colorado Division of Banking and Colorado State Banking Board
What are the money transmitter license requirements?
To apply as a money transmitter requires the following documents and fees:
- Interagency Biographical and Financial Report for firm and principal shareholders, directors, and executive officers, including: 1) employment record for last 5 years; 2) education and professional credentials; 3) business and banking affiliates; 4) legal and related matters; 5) financial statements; 6) contingent liabilities; 7) market securities, notes receivable, real estate, proprietary interests, other assets, notes payable, and other liabilities
- Fingerprint cards for anyone with responsibility for licensed activities
- History of operations
- Sample agent contract and form of payment instrument
- Name and address of clearing bank(s) on which payment instruments will be payable
- Flow chart of money movements from customer to final beneficiary or recipient
- Organizational structure and chart
- Most recent audited financial statements, and if available, previous 2 years annual statements; if subsidiary, provide statements for parent company
- Copy of any SEC filings
- Certificate of good standing from state of incorporation
- List of states that company is licensed in and address of business
- List of locations where licenses were denied or revoked
- Documents detailing any bankruptcy proceedings
- Minimum net worth equal to outstanding payments
- License fees vary depending on time of registration. Firms registering from January 1 to June 30 pay $7,600; firms registering from August 1 to December 31 pay $3,750.
What are the general bonding requirements?
California money transmitters must have a $1,000,000 in a surety bond or securities. The banking board can raise or reduce this number on a discretionary basis. Securities used in lieu of a surety bond must be rated the highest grades by nationally recognized ratings organizations.