MSB License Regulation in Virginia

Regulator of MSB license in Virginia

Virginia Bureau of Financial Institutions

Documents required for application:

• FinCEN Registration: Proof of registration with the Financial Crimes Enforcement Network.
• Organizational Chart: A visual representation of the company’s structure, including parent and subsidiary details.
• Financial Documents: Audited financial reports, including balance sheets and income statements. For startups, audited startup balance sheets and pro-forma financial statements are required.
• Business Plan: Detailed plan outlining the company’s mode of operation, target market, marketing strategy, staffing policies, compliance measures, and agreements with banks and vendors.
• AML/BSA Compliance Review: Copy of the most recent Anti-Money Laundering/Bank Secrecy Act compliance review.
• Sample Payment Instrument and Receipt: Samples of payment instruments and receipts used by the company.
• Projected Sales Volume: Projected monthly sales volume for the first two years of operation.
• Personal Financial Reports: Disclosure of personal financial information for directors, officers, members, trustees, partners, and equity owners.
• Employment and Business Affiliation Disclosure Form: Disclosure of employment and business affiliations for relevant individuals.
• Authorization Forms: Authorization forms for reference from banks or financial institutions where the applicant or key individuals have held accounts.
• Other Personal Information: Details such as date and place of birth, citizenship, residence history, social security number, marital status, and organizational affiliations.

Cost Involved

• Application Fee: $1,000
• Minimum Net Worth: Determined by the Commissioner, ranging from $200,000 to $1,000,000.
• General Bonding Requirements:
• Bonds are determined by the Commissioner, ranging from $25,000 to $1,000,000.

Process of application

• Register with FINCEN: Ensure registration with the Financial Crimes Enforcement Network.
• Create an NMLS Account: Register on the Nationwide Multistate Licensing System website for electronic application submission.
• Review Requirements: Familiarize yourself with the application requirements outlined by both NMLS and the Virginia Bureau of Financial Institutions.
• Prepare Documents: Gather and prepare all required documents as specified in the application checklist.
• Complete Application: Fill in the application form with accurate information and attach all necessary documents.
• Pay Fees: Submit the application fee along with the completed application.
• Wait for Approval: Await approval, which typically takes approximately 3 months.