Who needs to register?
Under New Hampshire statute, any person that engages in selling or issuing payment instruments or stored value, or receiving money or monetary value for transmission to another location, must obtain a money transmitter license. The law specifies that a “payment instrument” is any electronic or written check, draft, money order, traveler’s check, or other electronic or written instrument or order for the transmission or payment of money or monetary value, sold or issued to one or more persons, whether or not negotiable. The term does not include a credit card voucher, letter of credit, or instrument that is redeemable by the issuer in goods or services.
Who is the regulator?
New Hampshire Banking Department
What are the money transmitter license requirements?
To apply as a money transmitter in the state of New Hampshire requires the following fees and documentation:
- $500 application fee for each principal office, and $25 for each authorized delegate, not amounting to more than $5,000
- Net worth of its average daily outstanding money transmissions of the prior year or $1,000,000, whichever is the smaller amount
- Must appoint a New Hampshire agent
- Proof of trade name registration
- Articles of incorporation, bylaws, partnership or LP agreement, articles of organization and management agreements
- Audited financial statement from most recent fiscal years, including : balance sheet, income statement, statement of changes in owners’ equity, and cash flow statement. If company is older than 6 months, interim balance sheet is also required
- Additional statement of net worth and calculation that reflects the most recent year’s daily average transactions
- Copy of most recent federal business income tax returns (1120, 1120-S, K-1s)
- Names and tax IDs of owners, officers, directors, members, partners, trustees, beneficiaries, indirect owners, indicate percent ownership
- Individual disclosure form, criminal history record information authorization form, and finger print card for all above individuals and the application contact person and a $55.25 check fee
- Organizational chart demonstrating ownership of company
- Sample contracts and agreements
- Tax ID number of business
- List of all authorized delegates in the state
- Copy of FinCEN registration
- List of principals and their social security numbers
- Principal licensing contact person, consumer complaint person, legal contact person
- Physical location of the official books
- State in which applicant is a licensed money transmitter
- Date of fiscal year’s end
- Indication of whether applicant is controlled by, or do they control, any entity engaged in the business of money transmission
- Criminal disclosures, including felony charges, convictions, guilty pleas, no contests, misdemeanor charges, convictions, guilty please, no contests involving financial services/related business, fraud, false statements or omissions, theft or any wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or conspiracy to commit these offenses
- Regulatory Disclosure indicating whether applicant or affiliate has ever: been found to be involved in a violation of financial services-related regulations or statutes; made false misstatement or omission or been dishonest, unfair, or unethical; had authorization to do business denied, suspended, revoked, or restricted; had an order entered against it; had registration or license denied, suspended, or revoked; had attorney, accountant, state or federal contractor authorization revoked; been involved in a current proceeding
- Civil Judicial Disclosure, including: financial services-related enjoinment in the past ten years against applicant or control affiliate; whether applicant has ever been found to be involved in a violation of financial services-related statutes or regulations; whether applicant ever settled any financial services-related civil actions; whether applicant is involved in any current actions
- Financial disclosure, indicating whether applicant has ever been involved in: bankruptcy; denial, payout, or revocation by bonding company; unsatisfied judgments or liens
- Most recent tax returns for individuals, partnerships, LLCs, and corporations with twenty or fewer shareholders.
What are the general bonding requirements?
General bonding requirements include a $100,000 surety bond.
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.