Who needs to register?
Under Pennsylvania statute, persons engaging in the business of transmitting money for a fee must obtain a money transmitter license.
Who is the regulator?
Pennsylvania Department of Banking and Securities
What are the money transmitter license requirements?
To apply for a license in the state of Pennsylvania requires the following fees and documentation:
- Financial Statements: balance sheet, statement of income and expense, retained earnings, and change in financial condition along with notes to each statement for the last three years, audited by a Certified Public Accountant
- Must provide the same statements for any affiliated business on a consolidated AND unconsolidated basis
- Interim financial statement for current year within ninety days of application
- Internal audit plan, policies, procedures and schedule for all compliance issues including, but not limited to, PATRIOT ACT/Bank Secrecy Act, anti-money laundering, information technology, and disaster recovery
- Business plan/strategic plan
- Organizational chart (corporate structure chart)
- Organizational documents such as incorporation documents or partnership agreements
- History of equity transactions including additions and withdrawals
- Documents concerning rights to software, if any
- Complete and detailed resumes on all current officers and directors and any proposed new officers and directors
- Plans of potential investors and/or purchasers, if any
- Plans for managing future growth including financing, hiring, management/internal controls, and risk management
- Bank references
- Insurance references
- Operating budget
- Management contracts
- Employee manuals
- Retail agent manuals
- Operating policies and procedures
- Listing of loans to employees and officers including terms and security
- Aged list of delinquent agents
- Proof of registration as a Money Service Business (MSB)
- Original copy of executed bond or deposit agreement
- External audit reports for past three years
- Chart depicting the flow of money for each transaction type
- Name, “D/B/A” name (if applicable), and Federal ID number
- Articles of Incorporation or operating agreement and bylaws and Certificate of Authority to do business in Pennsylvania
- Email address, website, and a list of businesses offered on website
- Description of how money transmitter business will be conducted via the internet
- Proof from telephone service provider verifying all telephone numbers are designated in the company’s name
- Contact information for persons responsible for: licensing and application, annual report, examinations and violations, legal counsel, independent CPA, consumer complaints, and billing
- Corporations: List full name, corporate title, social security number, business and residence address, business, residence, and cell telephone number of, and amount of investment and/or number of shares owned by each officer, director, designated managers, or any shareholder owning 10% or more of all outstanding capital stock
- If not a corporation, indicate capital investment
- Each above person must complete a criminal history request and submit a $10 fee
- List of other business entities in which an equity or creditor interest is held
- List any and all other business entities in which at least a 10% equity or creditor interest is held by an officer, director, or owner of the proposed money transmitter licensee and the dollar amount or percent ownership of the holdings and whether funds are or will be interchanged between licensee and owner
- Name, address, and phone number for all depositories in Pennsylvania where funds from sale of transmittal instruments are deposited
- Name, address, and phone number of all current agents and subagents in Pennsylvania and any business or trade they operate including whether bonded and at what amount
- Duplicate of all forms of transmittal instruments or sample copies of contracts and forms consumers sign to evidence money transmitter agreement
- Schedule detailing all fees charged in connection with services
- List of all states in which applicant operates as a money transmitter including amount of bond or security pledge and the amount of escrow or deposit liability exposure as of the date of attached financial statements
- Name, address, contact person and information of all clearing or paying banks
- Disclosure of any director, officer, office manager, owner, etc. who has been subject to arrests, charges, convictions, guilty pleas, no contest pleas, or diversionary sentences to any criminal offense
- National fingerprint cards and criminal record checks of every proprietor, office manager, partner, corporate officer
- Five year employment history of each individual
- Must designate a Pennsylvania agent for service of process (give residential address)
- Affidavit signed by notary
- Minimum net worth requirement of $500,000
- Investigation costs are borne by the licensee
- License fee of $2,000
- Application fee of $500
What are the general bonding requirements?
General bonding requirements in Pennsylvania include a $1,000,000 bond.