MSB License Regulation in Iowa

Regulator of MSB license in Iowa

Iowa Division of Banking

Documents required for application:

• • Application denials, administrative/enforcement actions history, and Certificate of Resolution designating authorized signatories are required.
  • Principal Officers, directors, partners, members, and individuals owning at least 10% equity interest must provide a comprehensive 10-year employment history, including details of any litigation, administrative actions, or criminal history, along with residence history.
  • A Certificate of Good Standing from the state of incorporation, along with Articles of Incorporation/Organization/Partnership Agreement, is necessary.
  • Submit application fee.
  • The Iowa Money Services Information Form must detail past and intended money service businesses in Iowa, list authorized delegates and locations, provide banking information for payment instruments, disclose the source of funds and credit, describe the organizational structure, and report any criminal convictions, litigation, or adverse financial health.
  • Additionally, a sample contract for delegates and payment instrument form is required.
  • A net worth of $100,000 plus $10,000 per location (up to $500,000 maximum) is mandatory, along with audited financial statements for the most recent year, and unaudited or audited unconsolidated financial statements for the current fiscal year and two previous years.
  • A copy of the most recent SEC report, or the parent company’s if a wholly owned subsidiary, must be provided.
  • Authorization to Release Information forms are required, and non-law enforcement record check requests, along with a $15 fee for each director, officer, partner, or member of an LLC, must be submitted. This requirement does not apply to publicly traded corporations.

Cost Involved

• Applicants must submit an application affidavit and pay a $1,000 application fee plus an additional $500 for the Superintendent of Banking, and $10 per location
• A tangible total worth of at least $100,000 is required.
• A surety bond equivalent to $300,000 or a premium of $7,500 is required.

Process of application

Register with FinCEN: Begin by registering your money services business with FinCEN.

Familiarize with Iowa Regulations: Thoroughly review Iowa’s rules and regulations related to money transfer to ensure compliance.

Create NMLS Account: Head to the NMLS website and set up your account.

Gather Required Documents: Compile all necessary documents needed for your money transmitter license application.

File Application via NMLS: Initiate the application process by submitting your documents through the NMLS platform.

Payment of Fees: Complete the payment of relevant fees during the license application procedure.

Await Decision: Once you’ve submitted your application, patiently wait for approval from the regulatory authority.