State of California. ALL RIGHTS RESERVED. The full text of the original Washington State post: To: Licensees operating in Washington State as a “Payment Processor” The application process itself is rigorous and some applications will be rejected. The exact amount depends on the dollar volume of money transmission and payment instruments issued by the transmitter in the previous 12 months. Forty-nine US states (sans Montana) regulate (i.e., require licensure for) money transmitters although the laws vary from one state to the other. Do State Money Transmitter Laws Apply to Crypto or Virtual Currencies? © 2020 SHIPKEVICH PLLC. conduct money transmission business in the state of Washington on the Applicant’s behalf. Under Washington statute, those who are receiving money or its equivalent value to transmit, deliver, or instruct to be delivered the money or its equivalent value to another location, inside or outside the U.S., must obtain a money transmitter license. Once the prospective applicant for a new money transmitter license or acquisition of control understands the laws and regulations that govern money transmission in California, it is highly recommended that the applicant arrange for a pre-filing meeting with the Money Transmitter Division … Amazon's list of state licenses can be found here. When it comes to holding funds, the rules vary from state to state, just as many other provisions of the laws do. A surety bond is required of all applicants for a money transmitter license in Washington state. However, any company that offers to exchange, administer, or maintain virtual currencies for sovereign currency may be subject to state regulation and licensing as well as federal regulation. applicability of the state’s money-transmis-sion statute, the upfront costs associated with applying for licenses in numerous states, and a desire to be first to market as justification for the decision. The amount of the bond must be at least $10,000 and can not be more than $550,000. Applications for money transmitters must include the following fees and documentation: General bonding requirements are based on the previous year’s transmission dollar volume, and range from $10,000 to $250,000. It is a collection of Session Laws (enacted by the Legislature, and signed by the Governor, or enacted via the initiative process), arranged by topic, with amendments added and repealed laws … The cost for becoming a licensed money transmitter in all 53 states and territories with individual licensing requirements is … All Money Transmitter and Currency Exchangers must report their authorized delegate additions, deletions, and changes through the NMLS system. ATTORNEY ADVERTISING, Description of money transmitting activity, Whether applicant owes $100 or more for violations of the Litter Control Administrative Act, the Illegal Dumping Enforcement Act, the Civil Infractions Act, past due taxes, past due DC Water and Sewer Authority Services fee, or past due traffic tickets, List of conviction for crimes involving moral turpitude, fraud, misrepresentation, deceit, or misuse of funds, Whether applicant was refused coverage under fidelity or surety bond,  Material litigation involving officers or owners of 10% of equity 5 years preceding application, Proposed authorized delegates, locations and contract, History of operations and description of activities, Name and address of clearing bank or banks, $100,000 net worth plus $50,000 for each additional location, not amounting more than $500,000, $500 application fee +$25 for each location in D.C. not to exceed a maximum of $2,500, If an investigation is conducted, the fee is $60 an hour per person plus travel time and reasonably incurred costs, $10,000 additional surety bond for each location, not to exceed a maximum of $250,000. On April 17, 2017, Washington Governor Jay Inslee signed into law an amendment to section 19.230.020 of Washington's Uniform Money Services Act (the "Act"). The Division of Consumer Services of the Department of Financial Institutions in the State of Washington recently issued an interpretation providing that merchant payment processing constitutes money transmission under the Washington Uniform Money Services Act. (1) A person may not engage in the business of money transmission, or advertise, solicit, or hold itself out as providing money transmission, unless the person is: (a) Licensed as a money transmitter under this chapter; Some states, such as Florida, stipulate a maximum amount of time that a money transmitter may hold funds (10 business days, in Florida's case), while many others do not. eBook | Regulatory Guide To Money Transmission & Payment Laws In The U.S. Regulation. Registering as a money transmitter in D.C. requires the following fees and documentation: Note: Waivers may be obtained by application to waive certain license requirements, or to waive permissible investments. Under D.C. statute, those who conduct business at a location within the U.S. or to locations abroad or through an authorized delegate operating at a location in D.C. must have a business location in the District. Under certain conditions DFI will issue a money transmitter license without proof of a business bank account. Washington D.C. Department of Insurance, Securities and Banking. Money transmission does not include the provision solely of connection services to the internet, telecommunications service, or network access. Every exchange with Washington customers must now operate under the state’s money transmitter laws, which have traditionally applied to businesses like Western Union. ... MSBs must register with the United States Treasury Department within 180 days of the start of operations. Whereas FinCEN’s federal regulators see themselves as money laundering preventers, state regulators see themselves as consumer protectors. The state's Department of Finance issued several "Money Transmitter No-Action and Opinion Letters" addressing problems related to virtual currency and the state's money transmission laws. Washington State Amends Money Transmitter Law to Exclude Payment Processors. Under D.C. statute, those who conduct business at a location within the U.S. or to locations abroad or through an authorized delegate operating at a location in D.C. must have a business location in the District. Please reference the relevant Connecticut Statutes (§§ 36a-595 to 36a-612, inclusive).. Notice to all Debt Adjusters: Consumer Credit Division Director communication with licensed money transmitters and debt adjusters regarding the … On April 17, the state of Washington enacted a new law that, among other things, formally adds virtual currency to its money transmitter law. Under Washington statute, those who are receiving money or its equivalent value to transmit, deliver, or instruct to be delivered the money or its equivalent value to another location, inside or outside the U.S., must obtain a money transmitter license. A key element to a successful application submission is submitting the correct fees. • Many states say “Yes” – Coinbase is licensed in: • Alabama, Arkansas, Delaware, Georgia, Idaho, Iowa, Kansas, Maine, Mississippi, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, Puerto Rico, Washington… Money transmitters with multiple licenses must, consequently, deal with different legal approaches to their services and observe diverse compliance requirements which, if breached, may lead to the imposition of pecuniary sanctions. Washington, D.C. Money Transmitter Regulators Association Harrisburg, PA May 2016. Money transmitter applicants must maintain a business bank account for conducting money transmission. (d) A person who in the regular course of business chooses to accept from a customer the currency of a country other than the United States in order to complete the sale of a good or service other than currency exchange, that may include cash back to the customer, and does not otherwise trade in currencies or transmit money for compensation or gain. However, several states have used money transmissions laws to regulate the exchange of virtual currency. Code r. 830-X-7-.01 DC MONEY TRANSMITTER LICENSE This document includes instructions for a company ... compliance with applicable District and Federal laws and regulations. 04.19.17. © 2020 SHIPKEVICH PLLC. The result is that Company A has now fallen under various state laws regulating money transmitters and must comply with licensing requirements where applicable. 50-STATE SURVEY: Money Transmitter Licensing Requirements Provided by: Thomas Brown, Lecturer, UC Berkeley Law School and Partner, Paul Hastings LLP-1- State License Statute Published Regulations? In lieu of the security device, the licensee may deposit with the Superintendent, or with such banks in the District of Columbia as the licensee may designate and the Superintendent may approve cash, interest-bearing stocks and bonds, notes, debentures or other obligations: (B) Of any agency or instrumentality of the US; (E) Guaranteed by the D.C., in an aggregate amount, based upon the lower of principle amount or market value of note less than the amount of the security device or portion thereof. Money transmitters may request substitutions to surety bond that will be reviewed by the Department. WASHINGTON MONEY TRANSMITTER LICENSE Who is required to have the Money Transmitter license? (Sale of Checks Act) Ala. Admin. The amendment exempts most third party payment processors from the state's money transmitter licensing requirements. For more information please contact us at cslicensing@dfi.wa.gov or (360) 902-8703. 1 ... within local economies,6 state law generally requires the licensing of companies and individuals 5 Non-public Multi-state MSB Examination Taskforce survey of state money transmitter regulators. Payments for these changes are made through the NMLS system as well. ATTORNEY ADVERTISING, Legal name, business addresses, and residential address of the applicant, Copy of applicant’s MSB letter of Acknowledgement from the US Treasury Department, Copy of AML program and most recent independent review of the program, List of countries the applicant will be transmitting money to and from, State Reference: all state money transmissions and their current status; name of licensee; type of license; license number; and contact info for individual at regulatory entity, Disciplinary History: regulatory investigations, administrative actions, or enforcement actions against applicant; complaints filed against applicant over last five years; material and/or money services business litigation against applicant/control affiliate over last ten years; denials, pay outs; revocations of bonds for the applicant/control affiliate; bankruptcy/receivership against applicant, Authorized Delegate Form: entity name and address; contact employee information; authorization for verification; VIN for mobile facilities; previous twelve months of money transmission receipts; total number of delegates; sample contract for independent authorized delegates and screening methods, Individual Background Forms and Credit Reports: legal and other names; social security number; date and place of birth; employer name; office of employment; residential address and history over last ten years; citizenship; contact information; signed authorization for background check; ten year employment history and indications of financial service-related business; other businesses engaged in and description including positions with money services-related businesses over last five years; convictions of any crimes over last ten years; criminal complaints, accusations, or information; indictments pending; any regulatory/complaint investigations; material litigation related to money services businesses in last ten years; civil litigation over last ten years; bankruptcy/receivership affecting individual, applicant, or other organization controlled; unsatisfied judgments or liens; adverse administrative actions, Financial Statements: balance sheet; profit and loss statement; current financial statement of most recent quarter end; most recent audited financial statement and two years prior if available; method and source of capitalization for new formed business; wholly owned subsidiaries can submit parent statements for current and previous two years or three years of 10Ks; two years of pro forma financial statements, Method of tracking Washington business separately from other states, Business Model: how money is collected, transmitted; records collection and retention; delegate selection; specific products and services under the license, Channel money services business will be conducted through, Identifying information, including IRS Employer ID number (social security number for sole proprietorship), trade names, contact information, Contact Information: registered agent; application contact; compliance officer; physical location of books and records; individual responsible over Washington money services business, Legal Status: Federal tax ID, Washington state unified business ID, state and date of incorporation, fiscal year and stock symbol, must register with Division of Corporations, Ownership and Personnel: include all executive officers, directors, partners, managers, trustees, controlling persons, other individuals exercising managerial authority; full legal name, title/status; percent ownership; SSN/IRS tax #/Employer ID; organization chart if there are any indirect owners; description and contact information of any businesses over which a principal (10%) or controlling (25%) shareholder has control, License fee of $1,000 plus $100 per location up to a maximum of $6,000. eBook | Regulatory Guide To Money Transmission & Payment Laws In The U.S. Your company needs this license if you: Receive money or its equivalent value (equivalent value includes virtual currency) to transmit, deliver, or instruct to be delivered to another location, inside or outside the United States, by any Laws & Agency Rules; Bill Information; Agendas, Schedules, and Calendars; ... Money transmitter delivery, receipts, and refunds. State Money Transmitter Obligations. Money transmitter license required. But that’s only one consonant away from may will happen to PFs who volunteer too quickly for a waiver. The Revised Code of Washington (RCW) is the compilation of all permanent laws now in force. With the passing of Senate Bill 5031, virtual currency operators are placed under the jurisdiction of Washington money transmitter laws. Forty-nine of the fifty American states enact their own version of a Money Transmitters Act. On April 17, the state of Washington enacted a new law that, among other things, formally adds virtual currency to its money transmitter law. The Department is a member of the Money Transmitter Regulators Association (MTRA). A money transmitter is a business entity that provides money transfer services or payment instruments, such as Western Union.The original purpose of state level money transmissions laws was to prevent money laundering and other illegal acts. Money transmission includes the selling, issuing, or acting as an intermediary for open loop stored value devices and payment instruments, but not closed loop stored value devices. money transmitter; and the United States Postal Service (except with respect to the sale of postage or philatelic products). [Edit: This law goes into effect on July 23, 2017.] At the state level, a money transmitter must obtain a license in each state in which it plans to do business, if its regulation requires it. Tennessee’s Money Transmitter License and the required surety bond do not cover the transmission of virtual currency. Once filed, states will not approve all applications for licensure. ALL RIGHTS RESERVED. The state's Department of Finance issued several "Money Transmitter No-Action and Opinion Letters" addressing problems related to virtual currency and the state's money transmission laws. Money Transmitter Licensing Essential Statutes. Licensing Requirements Examination Requirements AL Ala. Code §§ 8-7-1 et seq. STATE LICENSING REGIME Money-transmission laws are rules-based (as opposed to … On April 17, 2017, Washington Governor Jay Inslee signed into law an amendment to section 19.230.020 of Washington’s Uniform Money Services Act (the “Act”). Fees Clarification. Money transmission does not include the provision solely of connection services to the internet, telecommunications service, or network access. Washington Department of Financial Institutions. Those who engage in the sale or issuance of payment instruments or engage in the business of receiving money for transmission or transmit money must obtain a money transmitter license in the District. How To Apply for a Washington Money Transmitter License The company must also file the report even if there are no changes to report. The latest letter was posted July 26, 2016. Those who engage in the sale or issuance of payment instruments or engage in the business of receiving money for transmission or transmit money must obtain a money transmitter license in the District. Bonding requirements for D.C. money transmitters include: 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. Agent adjustments (additions, deletions, and modifications) must be submitted through the UAAR within thirty days of the occurrence of the change. In these situations, transactions which are defined as an exch… It’s certainly the case that state money transmitter rules are in flux. To holding funds, the rules vary from state to state, just many! 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