MSB License Regulation in New York

Regulator of MSB license in New York  

New York is the Department of Financial Services

Documents required for application:

• Applicant Information:

Provide applicant’s name, address, federal Taxpayer Identification Number (TIN), and date and place of incorporation.

• Business History Information:

Submit information regarding the history of the applicant and the business.

Principal Officers and Directors Information:

Furnish details of principal officers, directors, and 10% equity security owners.

• Operational Details:

Provide information on operations, including proposed jurisdictions, mode of operation, and general procedures for engaging in money transmission in New York.

• Agent Listing:

Include an alphabetical listing of agents in New York, showing full names, addresses, and assigned identification numbers.

• Agency Contract Specimen:

Submit a specimen copy of the proposed agency contract between the applicant and its agents.

• Legal Proceedings Disclosure:

Disclose any legal proceedings, criminal or civil, brought against the applicant, directors, principal officers, or 10% equity security officers.

Financial Statements:

Provide financial statements for two fiscal years of operation before the application.

• Financial Projections:

Include projections for the two years of operation in New York, quarterly receipts, expected number of transmissions, pro forma balance sheet, and profit and loss statement.

• Anti-Money Laundering Program Documentation:

Submit documentation of an anti-money laundering program compliant with federal laws.

• Fingerprints and Background Reports:

Provide fingerprints and background investigation reports for applicable partners, officers, directors, stockholders, and owners.

• FinCEN Registration:

Include confirmation of registration as a Money Services Business from the Financial Crimes Enforcement Network (FinCEN).

Cost Involved

Non-refundable Fee: $3,000 payable to the order of the Superintendent of Financial Services.

General Bonding Requirements for New York Money Transmitter License:

Bonding requirements are determined by the superintendent, with a minimum requirement of $500,000.

The superintendent may consider factors such as the licensee’s financial condition, number of locations, controls on agents, and potential exposure of purchasers and holders of New York instruments in determining the bond amount.

Modification or dispensation of security requirements may be granted if the licensee meets specified criteria related to business conduct, financial condition, and insurance of New York instruments.

Process of application

• Ensure registration as a Money Services Business with FinCEN.
• Pay the non-refundable fee of $3,000 to the Superintendent of Financial Services.
• Gather all required documentation as listed above.
• Obtain the application form from the Superintendent of Financial Services.
• Fill out the application form accurately and comprehensively.
• Compile all required documents and submit the completed application to the Superintendent of Financial Services.
• Arrange for fingerprinting and background checks for applicable individuals not currently employed by a licensee.
• Await the review and approval of the application by the Superintendent of Financial Services.
• Arrange for bonding as per the requirements determined by the superintendent.
• Upon approval, ensure compliance with all regulatory requirements and obligations outlined by the Superintendent of Financial Services.
• Once the license is issued, commence money transmitter operations in New York in accordance with the approved terms and conditions.