Who needs to register?
Under South Dakota statute, a person is engaged in providing money transmission if the person provides those services to residents of South Dakota, even if such person has no physical presence in South Dakota, and such person is required to obtain a money transmitter license. Money transmission is defined as the engagement in the business of the sale or issuance of money payment instruments or stored value of receiving money or monetary value for transmission to a location within or outside the United States by any means, including wire, facsimile or electronic transfer.
Who needs to register?
South Dakota Division of Banking
What are the money transmitter license requirements?
To apply as a money transmitter in the state of South Dakota requires the following fees and documentation:
- Certificate of good standing in the state of its incorporation
- History of any criminal conviction or material litigation of the applicant
- Description of activities conducted by the applicant and a history of operations
- A description of the business activities in which the applicant seeks to be engaged in South Dakota
- A complete copy of AML/BSA compliance policies and procedures
- A list of proposed authorized delegates in South Dakota, including full name of the authorized delegate, a contact person, physical address, and phone number
- A sample of the authorized delegate contract(s) that will be used by the licensee, if applicable
- A sample of the form of payment instrument(s) to be used by the licensee or authorized delegates
- A list of locations at which the applicant and its authorized delegates propose to conduct the licensed activities in South Dakota
- List of the clearing banks on which the applicant’s payment instruments will be drawn or through which these payment instruments will be payable, including the name, address, phone number and account number for each clearing bank
- Application fee of $500 and a filing fee of $25
- License fee of $1,000
- Minimum net worth of not less than $100,000
What are the general bonding requirements?
General bonding requirements in the state of South Dakota are determined at the Commissioner’s discretion, but range from $100,000 – $500,000.