MSB License Regulation in North Dakota

Regulator of MSB license in North Dakota

North Dakota Department of Financial Institutions Consumer Division

Documents required for application:

General Money Transmitter:

• Proof of net worth of $100,000.
• Initial license fee of $1,000, application fee of $500, and $10 per location fee (up to $5,000).
• Background information including name and address.
• Details of any convictions or material litigation from the last five years.
• Description of previous money services provided and intended services in North Dakota.
• List of proposed authorized delegates and their locations.
• Disclosure of other state licenses and any disciplinary actions.
• Sample contract form and payment instrument if applicable.
• Bank contact information for payment instrument processing.

Corporate Money Transmitter:

• All documents required for general money transmitters.
• Formation details including date, state, and country.
• Certificate of good standing.
• Organizational structure information.
• Manager details for the past five years.
• Disclosures of convictions and litigation involving officers in the past five years.
• Contact information and five-year employment history of managers and key shareholders.
• Most recent SEC report if public.
• Audited financial statements of the parent company for the current and previous two years.

Individual Money Transmitter:

• All documents required for general money transmitters.
• Residence address, personal financial statement, and employment history for the last five years, including those of the person in charge of the money service business.
• Place and date of applicant’s registration or qualification to do business in North Dakota.
• Five-year criminal history of any owner.
• Audited financial statements for the current year and the preceding two years.

Cost Involved

• Application fee: $500
• Initial license fee: $1,000
• Additional $10 per location, up to $5,000
• Bonding requirements vary from $100,000 to $500,000, determined by the Commissioner.

Process of application

• Meet Basic Requirements: Ensure your company is registered with FINCEN and meets the minimum net worth requirement of $100,000.
• Create NMLS Account: Set up an account on the Nationwide Multistate Licensing System (NMLS).
• Gather Required Documents: Collect all necessary documents listed for your type of money transmitter (general, corporate, or individual).
• Complete Application: Fill out the application form on NMLS and upload all required documents.
• Pay Fees: Pay the application fee, initial license fee, and any additional fees for multiple locations.
• Wait for Approval: The application process typically takes about 3 months for approval.