MSB License Regulation in Texas

Regulator of MSB license in Texas

Texas Department of Banking.

Documents required for application:

• Legal name, residential and business addresses of the applicant and principals
• Taxpayer identification number or other identifying information
• Complete set of fingerprints for criminal background check
• Proof of familiarity and compliance with state and federal laws
• Proof of not failing to file required reports or accepting money from illegal activities
• Application fee of $2,500
• Minimum net worth requirement: $100,000 for four or fewer locations; $500,000 for five or more locations

Cost Involved

• Application fee of $2,500
• Surety bond of $300,000 or 1% of the license holder’s total yearly dollar volume of money transmission business, up to $2,000,000
• Net worth increase to meet bonding requirements if security exceeds $1,000,000

Process of application

• Checklist Review: Review the Texas money transmitter license checklist available on the NMLS website.
• Read Regulations: Familiarize yourself with the regulations for money transmitters in Texas, including Supervisory Memorandums and enforcement orders.
• Application Forms: Access the application forms for money transmitter licenses on the NMLS website or the main money services business section.
• Read FAQ: Read the official Frequently Asked Questions (FAQ) section to understand the application process.
• Net Worth Requirement: Ensure your net worth meets the minimum requirement of at least $500,000.
• Surety Bond: Obtain a surety bond between $300,000 and $2 million to fulfill bonding requirements.
• Application Fee: Pay the $10,000 application fee for first-time applicants.
• Submit Application: Complete the application forms and submit them along with all required documents.
• Wait for Approval: Await approval, which typically takes time for processing.