MSB License Regulation in New Jersey

Regulator of MSB license in New Jersey

Department of Banking and Insurance of the State of New Jersey

Documents required for application:

• Personal Information:

Furnish personal information for each key shareholder with 25% or more of stock, executive officer, partner, owner, and each officer or manager to be in charge of the applicant’s licensed activities in New Jersey.

• Audited Financial Statements:

Submit audited financial statements for the most recent year, and if available, for the two previous years demonstrating a minimum net worth.

• SEC Filings:

Provide relevant Securities and Exchange Commission (SEC) filings.

• Electronic Fingerprint Processing:

Complete electronic fingerprint processing as required.

• Clearing Bank Confirmation:

 Obtain a letter from the clearing bank confirming that the applicant’s payment instruments will be drawn and through which payments will be payable.

• Sample Delegate Contract:

Include a sample delegate contract.

• Sample Payment Instrument:

Provide a sample payment instrument.

• Corporate Structure:

Present documentation detailing the corporate structure of the applicant.

• Business Activities and History:

Outline business activities and provide a history of operation.

• Books and Records:

Submit relevant books and records.

• Instructions for Authorized Delegates:

Include instructions for authorized delegates.

Cost Involved

• License Fee:

$700 license fee.

• Net Worth Requirement:

For foreign money transmitters: $50,000 net worth, plus an additional $10,000 per location, not exceeding $400,000.

For domestic money transmitters: $100,000 net worth, plus an additional $25,000 per location, not exceeding $1,000,000.

• General Bonding Requirements in New Jersey:

Bonding requirements in New Jersey vary between $100,000 and $1,000,000, determined on a case-by-case basis.

Process of application

• Gather Required Documentation:

Collect personal information for the applicant, executive officers, partners, owners, and other relevant individuals.

Obtain audited financial statements and securities and exchange filings.

Prepare banking information, details on the flow of funds, business activities, and corporate structure.

• Complete Application Form:

Obtain the application form from the Department of Banking and Insurance, New Jersey.

Fill out the application form accurately and completely.

• Submit Application and Documentation:

Compile all required documentation as outlined in the application checklist.

Submit the completed application form along with the necessary documentation to the Department of Banking and Insurance, New Jersey.

• Schedule Live Scan Fingerprinting:

Effective July 1, 2019, schedule a Live Scan fingerprinting appointment.

Ensure all key individuals associated with the application undergo the Live Scan fingerprinting process.

• Attend Live Scan Appointment:

Attend the scheduled Live Scan appointment with all required individuals.

Complete the fingerprinting process as per the instructions provided during the appointment.

• Pay Application Fee:

Pay the required application fee as specified by the Department of Banking and Insurance, New Jersey.

Ensure timely payment to avoid delays in processing your application.

• Await Review and Approval:

Allow the Department of Banking and Insurance, New Jersey, to review your application and documentation.

Be prepared for any additional requests or clarifications that may arise during the review process.

• Receive License Decision:

Await the decision on your money transmitter license application.

Upon approval, comply with any additional requirements or conditions specified by the regulatory authority.