Who needs to register?
Under West Virginia statute, those engaging in the business of currency exchange, transmission or transportation of money, must obtain a money transmitter license. A person is considered to be engaging in business in West Virginia if he or she operates a web site, inside or outside the state, to transmit money by electronic means.
Money transmission is defined as the business of selling or issuing checks or receiving currency or the payment of money by any means for the purpose of transmitting, either prior to or after receipt, that currency, payment of money or its equivalent by wire, facsimile or other electronic means. Transmission may be issued through the use of a financial institution, financial intermediary, the federal reserve system, or other funds transfer network. It also includes the transmission of funds through the issuance and sale of stored value cards which are intended for general acceptance and used in commercial or consumer transactions.
Who is the regulator?
West Virginia Division of Financial Services
What is required for a money transmitter license?
Registering as a money transmitter in West Virginia requires the following fees and documentation:
- Fingerprint and release forms for chief executive officers, managing partners, trustee, 10% shareholders, or other persons controlling the conduct and affairs of applicant, except if the applicant is traded on a SEC registered exchange or if it is a subsidiary of a parent traded on a SEC registered exchange
- Business registration documentation in West Virginia
- Identifying information, including a Federal Tax ID
- Copy of certificate of authority from West Virginia Secretary of State or irrevocable consent to service form
- Physical address of official books and records
- Description of online or automated mediums used for money transmission activity
- Contact information for a licensing contact, compliance contact, consumer complaint contact, examination contact and internal auditor
- List of states where applicant or affiliate currently conducts money transmission and a description of the relationship with the affiliate
- Number of currency transaction reports and suspicious activity reports for most recently completed calendar year
- List of principal officers and title held, list of all directors, partners, members and 10% owners
- Disclosure of any pending civil or criminal proceedings against applicant or principals for the past ten years, including any convictions, no contests or pleas to lesser charges involving theft, fraud, dishonest dealings or moral turpitude
- Disclosure of any bankruptcy, receivership or similar proceedings
- Disclosure of agency denials, revocations or suspensions of applicant’s license or administrative actions, fines or penalties related to the same
- Disclosure of any delinquency in taxes, fines or fees to any taxing authority or agency in West Virginia
- If a subsidiary, provide organization chart, contact info and the state and date of incorporation of parent
- Notarized Principal Information Form for each sole proprietor, officer, director, partner, member, manager and 10% equity owner
- Copy of articles of incorporation or articles of organization or partnership agreement
- Copy of West Virginia business registration form for current period
- Product and/or services offered and channels through which they are provided
- List of West Virginia locations
- Merchant and delegate information
- Proof of registration with IRS as a money service business
- Current business plan regarding money transmission
- Name, address, and contact name for each clearing and depository financial institution utilized
- Internal audit program relating to money transmission
- Audited financial statements: most recent annual balance sheet, income statement and opinion and management letters from accounting firm, and a month-end financial statement bearing a date that is within ninety days of filing application
- License application fee of $1,000, plus $20 for each additional location
- Minimum net worth of $50,000 plus $25,000 per location up to a maximum of $1,000,000.
What are the general bonding requirements?
Money transmitters must provide a $300,000 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.