Who needs to register?
Under Rhode Island statute, any person providing electronic money transfers for a fee or other consideration must register as a money transmitter.
Who is the regulator?
Rhode Island Division of Banking
What are the money transmitter license requirements?
To apply as a money transmitter in the state of Rhode Island requires the following fees and documentation:
- $180 investigation fee
- $360 license fee for each activity
- $25 filing fee
- $50,000 net worth
- $25 to execute power of attorney for each application
- Identifying information
- List of all applicant locations: name, address, telephone number and contact person for each proposed agent location
- Name, residence, date of birth, resume of manager or person designated to operate licensed business
- Employment history indicating five years of experience in business sought, along with the names and addresses of employers, and number, complexity, and types of transactions handled
- For each owner, manager, partner, principal shareholder, officer, or 10% shareholder, provide a completed authorization for background check release form; two FBI fingerprint cards; completed certification of fingerprinting form; signed personal financial statement from www.dbr.ri.gov within sixty day period leading up to filing; $35 fee; if partnership, disclose the percentage ownership of each partner
- Applicant history, including: 1.) denials, refusals, suspensions, revocations, or cancellations of any financial licenses; 2.) enjoinment or restraints of practice in connection with licensed activities; 3.) any adverse actions in connection with licensed activities; 4.) bankruptcy, insolvency, receivership history; 5.) history of any violations of law; and 6.) licenses in other states, names and addresses of licensing authority
- State in which business is organized
- Name and contact information of a Rhode Island attorney (other than any managers or officers) who will accept service of process
- Copies of corporate charter, articles of incorporation, articles of organization, articles of association/partnership agreement, bylaws or operating agreement
- Description of corporate business structure, including identity of any parent or subsidiary
- Copy of resolution authorizing filing of application
- Certificate of Authority (corporation) or Registration (LLC) issued by Rhode Island Secretary of State or certification of good standing issued by Rhode Island
- Limited partnerships must provide Certificate of LP from Rhode Island Secretary of State
- GP must provide Certificate of GP from city or town in which they are registered
- Signed (by applicant) financial statement dating within sixty days of the application showing assets and liabilities
- Prospective balance sheet, and income and expense statement projected for first year of operation
- Rhode Island Business Plan: dated no more than 180 days prior to date of application, including description of primary market area, projected customer base, days and hours of operation, and types of legal services to be offered including special services (i.e., fluency in languages other than English)
- Description of location where the business activities will be conducted under license
- Description of manner in which licensee will promote the convenience and advantage of the Rhode Island community in which it is conducted
- Anti-money laundering compliance program, including: 1.) Policies, procedures, and internal controls including verifying customer ID, filing reports, detecting suspicious activity, creating and retaining records, and responding to law enforcement requests; 2.) Designation of compliance officer to assure proper filing and records, updates to the system, and training; and 3.) Independent review to monitor scope and frequency, commensurate with risk of service provider
What are the general bonding requirements?
General bonding requirements in the state of Rhode Island are $50,000, with $5,000 for each additional location, not amounting to more than $150,000.
Rhode Island Sale of Checks and Electronic Money Transfers
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.