Who needs to register?
Under Minnesota statute, those who sell or issue payment instruments or engage in the business of receiving money for transmission or transmitting money within the U.S. or to locations abroad by any means, including payment instrument, wire, facsimile, or electronic transfer must obtain a money transmitter license.
Who is the regulator?
Minnesota Department of Financial Institutions
What are the money transmitter license requirements?
Registering as a money transmitter in the state of Minnesota requires the following fees and documentation:
- $4,000 application fee
- Identifying information
- Minimum net worth of $25,000 for businesses with 1 to 3 additional locations; minimum net worth of $50,0000 for business with 4 to 6 locations; must have minimum net worth of $100,000 plus $50,000 per location, not amounting to more than $500,000, for 7 or more locations
- Must show proof of good standing within state of incorporation
- If not incorporated, must show proof of registration to do business within state
- Ten year history of applicant or controlling persons’ history of material litigation, including: 1) whether applicant was a defendant in any lawsuit involving claims of gross negligence, fraud, misrepresentation, mismanagement of funds, conversion, breach of fiduciary duty, breach of conduct, or deceit; 2) whether applicant was ever the subject of inquiry or investigation by the Minnesota Department of Commerce, or censured, suspended, revoked, cancelled or terminated in any state including Minnesota, or by any federal regulatory agency; 3) whether applicant has been found by any civil court to have failed to account to a client or customer for money or property collected on or behalf of the client or customer; 4) whether applicant has been a principal or office of any firm, corporation, partnership, or association which has filed a bankruptcy petition or been declared bankrupt; 5) whether applicant has been charged with, indicted for or convicted of, or entered a plea to any criminal offense (felony, gross misdemeanor or misdemeanor) other than traffic violations, in any state or court; 6) whether applicant has been notified by the Commissioner of Revenue of delinquent taxes which are currently owed to the State of Minnesota
- Description of activities conducted by applicant and history of operations
- Description of activities sought in the state
- List and contact information of proposed authorized delegates in Minnesota
- Sample of authorized delegate contract
- Sample payment instrument
- List of Minnesota locations
- Name, address and account numbers for clearing banks or banks where payment instruments will be drawn or will be payable
- Location of books and records
- Certificate of incorporation and date and state of incorporation
- Description of corporate structure and organization chart
- Documentation of name, business and residence address, and employment history over the past five years of all executive officers, officers or managers in charge of application activities, copy of criminal history verification obtained from local law enforcement or government agency (ten years prior, at most ninety days old) and authorization to release information form
What are the general bonding requirements?
General bonding requirements vary depending on the number of locations. For three or less locations, businesses must have a $25,000 surety bond. Businesses with four to six locations must have a $50,000 bond, while businesses with seven or more locations must have an additional $50,000 for each location, not amounting to more than $250,000.