Kentucky Money Transmitter Laws

Kentucky Money Transmitter License Laws and Requirements

 

Who needs to register for a Kentucky Money Transmitter License?

Under Kentucky statute, those engaged in the business of receiving money or monetary value to transmit, deliver, or instruct to be transmitted or delivered, money or monetary value to a resident of Kentucky, must obtain a Kentucky money transmitting license.

Money transmitting activities include, but are not limited to, advertising those services, provides those services with or without compensation, solicits to provide those services, or holds itself out as providing those services to or from this state, even if the person has no physical presence in this state.

 

Who is the regulator?

Kentucky Department of Financial Institutions.

 

What are the Kentucky money transmitter license requirements?

To register as a money transmitter in the state of Kentucky requires the following fees and documentation:

  • Identifying information, contact person, business structure, channel MSB will be conducted through, federal tax ID, Kentucky corporation number
  • Name and address of financial institution where payment instruments will be made through
  • Authorization for verification
  • Identifying and contact info for contact/compliance person
  • One-line dollar figure that represents total volume of MT that were transferred in Kentucky over the past 12 months
  • List of owners and % ownership, other interests owned by each SH, parent companies, affiliates, and subsidiaries of applicant
  • Identify “responsible individual” with principal managerial authority; 5 year employment history and individual background form
  • List of Agents in Kentucky and contact information
    – separated by type of location (outlet, agent, sub, affiliate)
    – Include Vehicle Identification Number
  • Sample contract for agents and method of screening for criminal activity
  • Sample payment instrument
  • History and descriptions of all locations of money transmissions business
  • Copy of written procedures that will be provided by applicant to agents
  • Registration of business with Kentucky Sec. of State and Dept. of Rev., and any other licenses that may be necessary (documents not required)
  • Certificate of Authority to do business in the state
  • Articles of Incorporation
  • Certificate of good standing from state/country of incorporation
  • FinCEN registration letter from US Dept. of Treasury
  • Location of records
  • Info of registered process agent if outside of the state; process agent must be located in the state of Kentucky
  • If applicant has never been licensed to engage in MSB in any jurisdiction, must provide a list of any licenses app has in any other state and the contact information for contact person at regulatory entity; identify each state where they have ever held a money services license
  • Current financial statement, including BS and profit & loss statement as of the most recent quarter end (or, if wholly owned, current and previous two annual SEC reports)
  • Copy of most recent audited statement, plus two previous years if available
  • Method and source of capitalization and credit used
  • List of permissible investments + % ownership
  • Name, address, phone # of clearing bank used
  • Bankruptcy, reorganization and receivership history
  • Discipline History: regulatory investigations, admin actions, enforcement actions — current and over the last 10 years
  • Present and past (10 years) criminal history
  • Provide your method for tracking Kentucky business separately from business conducted in other states. This is for the purpose of annual reporting and calculating surety and net worth requirements
  • Application Fees:
    – 3/31–9/30: $250 application fee + $500 license fee
    – After 9/30: $500 app fee + $500 license fee
  • Financial Schedules: Cash & Savings; CODs; stocks, bonds & marketable assets; accounts, loans & notes receivable; prepaid
  • Expenses; real estate & buildings; Accounts payable; accrued taxes; net worth or SH equity;

 

What are the general bonding requirements for a Kentucky money transmitter license?

Kentucky money transmitters must have a surety bond requirement of $500,000 to $5 million as determined by the commissioner.

 

Additional resources:

Kentucky Money Transmitter Act

 

 

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.