Who needs to register?
Under Iowa statute, a person must register as a money transmitter if that person sels payment instruments to one or more persons or issues payment instruments which are sold to one or more person; conducts the business of receiving money or monetary value for transmission; or conducts the business of receiving money for obligors for the purpose of paying obligors’ bills, invoices, or accounts.
Who is the regulator?
State of Iowa Division of Banking
What are the money transmitter license requirements?
To apply as a money transmitter in Iowa requires the following fees and documents:
- Any denials of application for license
- History of administrative/enforcement actions
- Certificate of Resolution stating who can sign documents
- Notified biographical/authority sheet
- 10 year employment history, litigation/administrative/criminal history, and residences of principal officers, directors, partners, members, and people owning 10% equity interest
- Certificate of good standing from state of incorporation
- Articles of incorporation/organization/partnership agreement
- Application affidavit
- $1,000 application license plus $500 for Superintendent of Banking plus $10/location
- Iowa Money Services Information Form, which includes: description of past and intended money service businesses in Iowa, list of authorized delegates and locations, name and address of any bank through which payment instruments will be paid, source of money and credit used to provide money services, description of organizational structure, and criminal convictions/material litigation/adverse financial health information
- Sample contract for delegates and a sample form of payment instrument
- Net worth of $100,000 plus $10,000/location (maximum of $500,000)
- Audited financial statements for most recent year, plus two before that if available
- Unconsolidated financial statement for current fiscal year, plus two before that if available (audited or unaudited)
- Copy of most recent SEC report, or parent’s if wholly owned subsidiary
- Authorization to release information form
- Non-law enforcement record check request for every director, officer, partner, or member of LLC plus $15 for each; not necessary for publicly trade corporations
What are the general bonding requirements?
General bonding requirements for money transmitters in Iowa include:
- $50,000 surety bond, letter of credit, or other similar security
- $10,000 for each addition location, up to a maximum of $300,000