New York has strict requirements for businesses to obtain money transmitter licenses, which is a coveted license for businesses in the state. The process involves applying through the Nationwide Multistate Licensing System and Registry (NMLS), which is a complicated matter with many steps and requirements. All money transmitter licenses are state-specific, and you must meet the requirements in New York, even if your company is licensed in other states.
Successfully obtaining and maintaining a money transmitter license is essential for money transmitters to operate, so it is important to handle the application process properly. To ensure you do not miss any steps, you should seek professional guidance from a money transmitter license and compliance expert at Bates Group.
Requirements for a New York Money Transmitter License
To start the application process, you must complete a main company form that includes many different types of information. You must also submit an individual form for all listed executive officers and direct owners, which must include a credit authorization, identifying documents, personal financial statements, and explanations for any derogatory information on a credit report. Control individuals must also submit fingerprints.
Along with the company and individual forms, organizations must provide:
- The company’s Bank Secrecy Act/Anti-money laundering (BSA/AML) policies and compliance program
- Your business plan
- The certificate of authority for the company
- Formation agreements and documents
- Management charts identifying officers, directors, and managers
- Charts showing ownership stakes of direct and indirect owners, affiliates, and subsidiaries
- Your plan and policies for agent contracts in New York
- Sample documents for agency agreements, operating agreements, and other contracts
- An overview of how your transactions and money services with be structured
- Lists of permissible investments and their respective values
- An affidavit that promises compliance with the New York Banking Laws for permissible investments
Finally, you must submit proof of a surety bond for at least $500,000 obtained by your company.
Your company will need to undergo a state examination of owners and all financial statements of the business. It is important to undergo a mock examination to ensure that your business will pass the examination by the State of New York. Mock examinations can help to prevent delays or even denials of your license, and our team can conduct these for you.
What a Money Transmitter License Allows
A money transmitter license allows money services businesses to complete many types of transactions, such as:
- Selling and issuing money orders and traveler’s checks
- Selling and issuing prepaid and stored value instruments
- Selling and issuing drafts
- Bill paying
- Electronic money transmitting
- Dealing and exchanging foreign currency
In order to obtain and maintain the license, you need to have compliance programs in place.
Seek Professional Assistance with Money Transmitter Licensing in New York
When money transmitter licensing in New York is essential for your business operations, you want to ensure you complete the application process as efficiently and effectively as possible. Bates Group is ready to help, so please contact us today to learn more.
