MSB License Regulation in Michigan

Regulator of MSB license in Michigan

Michigan Department of Insurance and Financial Services

Documents required for application:

• Completed Michigan Money Transmitter License Application.
• Organizational flow chart (if not a wholly owned subsidiary).
• Web address through which business will be conducted, along with security and privacy precautions.
• Description of material litigation and criminal convictions in the past ten years.
• Money transmitter policies and procedures to ensure compliance with anti-money laundering and Bank Secrecy Act requirements.
• Confirmation of FinCEN filing.
• Compliance officer and plans for regular independent review and monitoring of authorized delegate compliance.
• Date and location of any bankruptcy or receivership proceedings.
• List of all officers, members of the Board of Directors, executive committee, controlling persons, partners, sole proprietors, shareholders of 20%, members of LLC, and affiliation disclosure.
• Personal or business bankruptcy history.
• Financial service licenses issued by other states.
• Prior experience in consumer financial services business and firms.
• Employment history over the past ten years.
• List of firms, companies, corporations, or other business organizations where the applicant has been a director, officer, employee, partner, owner, or member.
• List of all additional persons with any ownership interest in the applicant company, including company, residence, and percent ownership.
• Michigan Resident Agent for which process is served in Michigan.
• Written business plan outlining the scope of the business, financial arrangements, relationships and agreements, target market, sources of funding and credit, use of authorized delegates and employees, and any other relevant information.
• Contact person.
• Company’s state and date of origin.
• List any license number, type of license, and the name of the regulatory agency issuing the license if licensed in any other state.
• Financial Statement disclosure and tax ID, including fiscal year end (a personally filled out balance sheet).

Cost Involved

• Initial license fee: $2,500 plus $50 for each additional location, not exceeding $3,000.
• Investigation fee: $600.
• Net worth requirement: $100,000 plus $25,000 for each location and delegate, not exceeding $1,000,000.
• Bonding requirements: $500,000 bond plus $10,000 bond for each additional location, not exceeding $1,500,000.

Process of application

• Register your Money Services Business with FINCEN.
• Review the requirements provided by the Michigan Department of Insurance and Financial Services and the Nationwide Multistate Licensing System.
• Gather all necessary documents for the application.
• Create an NMLS account and fill in the application accurately.
• Ensure all documents are complete before submission to avoid delays or rejection.
• Wait for approval, which typically takes around 3 months if the application is completed correctly.