Who needs to register?
Under Kansas statute, those engaged in the business of selling, issuing or delivering payment instruments, checks, drafts, money orders, personal money orders, bills of exchange, evidence of indebtedness or other instruments for the transmission or payment of money, or otherwise engaged in the business of money transmission with a resident of Kansas, must obtain a money transmitting license.
Money transmitting activities include, but are not limited to, transferring funds on behalf of the public by any and all means, including transfers within the US or abroad by wire, check, draft, electronic transfer, or facsimile.
Who is the regulator?
Kansas State Office of the State Bank Commissioner.
What are the money transmitter license requirements?
To register as a money transmitter in the state of Kansas requires the following fees and documentation:
- Identifying information
- Name and contact information for designated person regarding application
- Remittance fee of $100 + $10 per agent
- Additional cost of any on-site examinations or investigations
- Documents detailing organizational structure
- State of incorporation, location of corporation, and Articles of Incorporation
- Filing with the Kansas Secretary of State authorizing the corporation to do business in Kansas
- Identification of the type of money transmission
- Description of business plan, including: the method and types of activities and operations; the proposed location of operations and outlets in Kansas; anticipated growth in volume and in number of transactions at the end of the first two years of operations in Kansas
- List of directors and senior officers, their biographies, and list of shareholders owning more than 10% equity
- Information as to whether applicant or critical people have been refused bond, indicted or convicted
- List of names and business addresses of proposed selling agents of the applicant operating in Kansas
- List of states in which company is currently licensed, including license date, activities, and trade name (if applicable)
- Suspensions, revocations, and denials of license
- Enforcement action history
- Description of procedures to check money transmitter names with names from Office of Foreign Assets Control lists
- If registered as a MSB with the US treasury, provide a copy of acknowledgment letter from IRS-Detroit Computing Center and copy of FinCEN Form 107
- Net worth of $250,000
- Provide an audited (prepared by an independent CPA) financial statement of the applicant, including balance sheet, statement of income, and statement of stockholder’s equity, for the two most recently completed fiscal or calendar years
- The most recent un-audited interim financial statements prepared for the applicant and dated no more than 90 days from the date of application
What are the general bonding requirements?
Kansas money transmitters must have a bonding requirement of $200,000 – $500,000, as determined by the commissioner.
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.