MSB License Regulation in Washington

Regulator of MSB license in Washington

Washington State Department of Financial Institutions (DFI)

Money transmitter license applications: Nationwide Multistate Licensing System & Registry (NMLS).

Documents required for application:

• Applicant Information:
• Legal name, business addresses, and residential address of the applicant.
• Copy of applicant’s MSB letter of Acknowledgement from the US Treasury Department.
• Compliance Documentation:
• Copy of AML program and most recent independent review.
• List of countries involved in money transmission.
• State References and History:
• State money transmissions status.
• Regulatory investigations and enforcement actions.
• Disciplinary history and complaints.
• Authorized Delegate Information:
• List of delegates and sample contracts.
• Previous twelve months of money transmission receipts.
• Individual Background Forms and Credit Reports:
• Personal and employment history.
• Criminal background and financial history.
• Financial Statements:
• Balance sheets and profit/loss statements.
• Audited financial statements.
• Business Model and Operations:
• Description of business model and services.
• Method of tracking Washington business.
• Contact Information and Legal Status:
• Registered agent and compliance officer details.
• Legal status and identification information.
• Ownership and Personnel Details:
• Information on executive officers and shareholders.

Cost Involved

• License Fees:
• WA Application Fee: $1,000
• NMLS Processing Fee: $100
• Credit Report for Control Person: $15 per person
• Criminal Background Check: $36.26 per person
• Surety Bond:
• Minimum bonding requirement: $10,000.
• Minimum Net Worth:
• Tangible net worth: $10,000.
• Cryptocurrency transmitter: $100,000.

Process of application

• Register with US Treasury Department:
• Obtain MSB letter of Acknowledgement.
• Obtain Business License:
• Obtain a business license from Washington State Department of Revenue.
• Register Company:
• Register business with Washington Office of the Secretary of State if not a sole proprietorship.
• Check Department of Revenue Registration:
• Determine if registration with Department of Revenue is necessary.
• Document Gathering:
• Complete and gather all necessary documents for the application.
• Payment of Fees:
• Pay license fees, processing fees, and background check fees.
• Meet Net Worth and Bonding Requirements:
• Ensure minimum net worth and obtain required surety bond.
• Submit Application:
• Review application for completeness and accuracy before submission.
• Await Decision:
• Wait for approval, which may take 5 to 7 months.