New York Money Transmitter License Compliance

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New York Money Transmitter License Compliance

New York has very specific rules and requirements for money transmitter licenses (MTLs). This license is critical to specific monetary operations, and if you need this type of license, you want a New York money transmitter license compliance specialist on your side. Please contact our expert team at Bates Group LLC, for more information about our compliance services. 

Obtain Your License

If you conduct monetary transactions worth more than $1,000 per day that involve currency dealing, exchanges, traveler’s checks, check cashing, money orders, or other types of transfers, you likely need a money transmitter license to conduct business lawfully in New York. Our team can assess whether you need a license and whether you meet the criteria to obtain a license. We can then assist with every step of the application process, including addressing any potential obstacles you might face during the process. The first step to being in compliance with New York money transmitter regulations is to successfully obtain the license you need to operate. 

Maintain a Compliance Program

As part of your MTL application, you must demonstrate that you have a program in place for compliance with the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws on the federal and state levels. After you obtain your license, you must maintain this program and continually ensure that your policies lead to compliance at all levels of operations. Such a program can involve:

  • Having a chief compliance and security officer
  • Record keeping and reporting requirements
  • Transaction engines and monitoring systems
  • Customer information programs and Know Your Customer (KYC) systems
  • Cybersecurity protections

Each company should have its own compliance program tailored specifically to its operations and transactions, as well as risk factors for noncompliance. Our specialists work with money transmitters in New York and across the country to help them develop, enhance, and maintain effective compliance programs to protect their money transmitter licenses and prevent noncompliance penalties and other concerns. 

Pass State Examinations

Part of maintaining your MTL is to undergo state examinations regarding your compliance with federal and state regulations, as well as the soundness and safety of your operations for consumers. The state examiners assign each licensee a score from “1” to “5,” with 5 being unsatisfactory. Companies that receive 4s or 5s may face fines and/or the suspension or revocation of their licenses. For this reason, it is important to be ready to score well on state examinations. 

Overall, the state will examine the following areas:

  • Financial condition of the company
  • Internal controls and auditing
  • Risk management
  • Regulatory and legal compliance
  • Technology and systems

Bates Group LLC, knows how important these examinations are to every licensee, and so we offer mock state examinations to identify potential issues before the DFS does and puts your license in jeopardy. 

Consult with Our New York Money Transmitter License Compliance Specialists

New York regulations regarding MTLs are strict and are only becoming stricter. If you need assistance from a New York money transmitter license compliance expert, Bates Group LLC, can help. Please contact us directly for a consultation.

AML & Compliance Services
Development and enhancement of risk-based Compliance Programs
AML & Consumer
Protection Reviews
Consumer Protection Reviews
State Licensing
Money Transmitter License Acquisition and Maintenance
Other Services
Additional Customized Support

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