Who needs to register?
Under North Dakota statute, anyone who engages in the business of the sale or issuance of payment instruments, stored value, or of receiving money or monetary value for transmission to a location within or outside the United States by any and all means, including wire, facsimile, or electronic transfer, is engaged in the business of “money transmission” and must obtain a license from the Department of Financial Institutions. “Money transmission” also includes bill payment services not limited to the right to receive payment of any claim for another.
Who is the regulator?
North Dakota Department of Financial Institutions
What are the money transmitter license requirements?
To apply as a money transmitter in the state of North Dakota requires the following fees and documentation:
- Net worth of $100,000
- $,1,000 initial license fee plus a $500 application fee and $10/location (maximum $5,000 location fee)
- Background information (name, address)
- Convictions and material litigation from the last five years
- Description of money services previously provided and what the business seeks within the state
- List of proposed authorized delegates/locations in the state
- List of other state licenses and any disciplinary action
- Sample form contract, payment instrument (if applicable)
- Contact of any bank through which applicant’s payment instruments/stored value will be paid
Corporate money transmitters
If registering as a corporation, the applicant must provide all of the above, as well as:
- Date/State/Country of formation
- Certificate of good standing
- Organization structure
- Manager information for previous five years
- Convictions/litigation involving officers in the last five years; company and officers/key shareholders
- Contact information and five year employment history of managers in charge of the business and any key shareholders
- Most recent SEC report, if public
- Audited financial statements of parent: balance sheet, statement of income/loss, statement of changes in shareholder equity, statement of changes in financial position, plus the same for two years prior if available
- NOTE: If a wholly-owned subsidiary, consolidated financials for current and previous two years or $10,000
Individual money transmitters
If registering as an individual, the applicant must provide all of the above, as well as:
- Residence address, personal financial statement, and employment history over the last five years plus the employment history of whoever will be in charge of the money service business
- Place/date of applicant’s registration/qualification to do business in North Dakota
- Five year criminal history of anyone who has had an ownership interest
- Audited balance sheet, statement of income or loss, and statement of changes in financial position for the current year and the preceding two years
What are the general bonding requirements?
Bonding requirements for the state of North Dakota range from $100,000-$500,00. The Commissioner determines the actual bond required of each licensee.
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.