MSB License Regulation in Indiana

Regulator of MSB license in Indiana

Indiana Department of Financial Institutions

Documents required for application:

• Documentation detailing the number of Indiana locations, proposed delegates, and a sample delegate contract.
• Identification details of officers, directors, members, and entities/persons with 10% or more ownership, including history of litigation or convictions within the past 5 years, and 5-year employment history.
• Three references, including one from a financial institution, attesting to the applicant’s financial responsibility, character, and fitness.
• Business plan description, operational history, and planned activities within the state.
• List of branch locations.
• Sample payment instrument format.
• Names and addresses of clearing banks.
• List of other states where the applicant operates as a money transmitter, along with licensing details and contact information.
• Insurance policy covering loss due to criminal or dishonest acts, meeting the required security deposit amount.
• Audited financial statements for the current year and previous two years for all business entities, including balance sheet, income statement, shareholder equity changes, and financial position changes.
• If applicable, provide the parent company’s current financial statements or 10K for the past three years, unaudited financial statements, and the most recent peer review letter received by the CPA.
• For non-corporate entities, submit identification information and financial statements of the person responsible for money transmission activities.

Cost Involved

• Minimum tangible net worth of $600,000.
• Submit a surety bond of $300,000 or a premium in the amount of $7,500

Process of application

To complete the application submission process for a money transmitter license in Indiana, follow these steps:

Company Form (MU1) Submission: Complete and submit the Company Form (MU1) via the NMLS platform, serving as the application for the license.

Financial Statements: Upload audited financial statements for the most recent fiscal year and the two-year period preceding the application.

Also, upload certified unaudited financial statements for the most recent fiscal quarter if not included in the audited statements.

Authorized Agents (Delegates) Locations: Utilize the NMLS Uniform Authorized Agent Reporting (UAAR) functionality to report authorized agents. Upload a list of agents authorized to conduct money services businesses in Indiana quarterly through UAAR.

Other Trade Name: If operating under a different name than the legal entity, list the trade name in the Other Trade Names section of the MU1 form.

Resident/Registered Agent: List the registered agent under the Resident/Registered Agent section of the MU1 form, ensuring consistency with Indiana Secretary of State records.

Primary Contact Employees: Enter primary company and consumer complaint contacts in the Contact Employees section of the MU1 form.

Approvals and Designations: Enter the company’s FinCEN Registration Confirmation Number and Filing Date in the appropriate section of the MU1 form.

Bank Account Information: Complete the Bank Account Information section of the MU1 form.

Disclosure Questions: Provide detailed explanations and document uploads for any “Yes” responses to disclosure questions on the MU1 form.

Qualifying Individual: Designate a qualified individual with two years of verifiable money transmission experience in the Qualifying Individual section of the MU1 form.

Control Person Attestation: Complete the Individual Form (MU2) and ensure attestation by the applicable control person before submitting with the MU1 form.

Credit Report: Authorize a credit report through NMLS for individuals in control positions.

FBI Criminal Background Check: Authorize an FBI criminal background check for relevant individuals through NMLS.

Electronic Surety Bond: Provide an Electronic Surety Bond through the NMLS process, meeting the required amount.

Additional Requirements: Submit additional documents such as crime insurance policy, third-party authorization, location lists, non-financial external audits, internal control external audits, and certificates of authority/good standing.

AML/BSA Policy: Upload an AML/BSA Policy, including independent review.