Acquiring an MSB license in the United States is an essential step for operating financial services on the world's largest monetary services market. The primary regulatory authority overseeing this process is the Financial Crimes Enforcement Network. However, it is crucial to recognize that each state has its specific requirements for obtaining an MSB license in the U.S. Below, we will outline some of the regulatory nuances in each state where obtaining an MSB license is feasible in America.

Obtaining an MSB license in the States

Businesses and individuals engaged in the transfer or conversion of monetary funds are required to apply for an MSB license in the United States. Below you will find the key regulatory provisions for financial activities in the USA for each state.

Alabama

Entities functioning as money transmission service providers are mandated to submit an application to the local Securities Commission in order to secure an MSB license in the state of Alabama. This application must include comprehensive details about the business owner, each company stakeholder, and the directors.

Additionally, obtaining the MSB license in Alabama requires the payment of a registration fee amounting to $250 USD. Upon submission of the application, firms are subject to scrutiny by the regulatory authority.

Alaska

Money transfer providers are required to submit information about obtaining an MSB license in Alaska to the state's Department of Commerce, Community, and Economic Development. This application typically includes personal and financial details of the owner and any company shareholders. As in other states, the application process involves a background check and the requirement to maintain a minimum net worth of $25,000 USD.

Arizona

You must apply to the Department of Financial Institutions if you want to operate as a money transfer service in Arizona and get an MSB license. This application should include the owner's financial and personal details as well as the organizational structure and operational operations of the firm. In the state of Arizona, $1,500 USD is required as a licensing fee in order to obtain a payment license. Furthermore, a minimum net worth threshold of $100,000 USD is established. In addition, holders of licenses must keep up a surety bond of at least $25,000.

Arkansas

Applicants seeking to obtain an MSB license in Arkansas submit their application to the local Securities Department. The application must encompass information regarding:

  1. Location of business;
  2. Field of activity;
  3. Owner and shareholders.

Business verification and a license fee payment of 1,500 USD are mandatory. Additionally, a minimum net asset value of 250,000 USD and a security deposit of no less than 50,000 USD are required.

California

Money service providers seeking to procure an MSB permit in California must engage with the California Department of Business Oversight. Petitioners are required to file personal details of the business owners and shareholders, provide corporate documentation, and delineate the planned operational activities. Additionally, a licensing fee of $5,000 must be paid. Money service providers operating in California must obtain a surety bond of at least $250,000, along with maintaining capital reserves, which are contingent upon the scope of their business activities.

Colorado

Individuals wishing to acquire an MSB license in Colorado are required to submit their applications to the Department of Regulatory Agencies. The application must adhere to detailed specifications laid out for licensure.

  1. Name of the applicant;
  2. Details regarding the enterprise;
  3. Data concerning legal infractions and civil cases;
  4. Overview of the business operations;
  5. Comprehensive financial records.

New license applicants must undergo state examination, as well as pay a licensing fee of $7,500 USD. The minimum authorized capital amounts to $50,000 USD. Companies must also provide a security deposit of no less than $250,000 USD.

Connecticut

Obtaining an MSB license in Connecticut occurs through the Department of Banking. Applicants provide information regarding business ownership and location, as well as financial data. Those intending to conduct financial activities within the United States are also subject to regulatory scrutiny. Following application submission, a licensing fee of $2,500 must be paid. The minimum net worth requirement stands at $500,000, with a guarantee of no less than $300,000 also mandated.

Delaware

The Office of the State Bank Commissioner is accepting applications for MSB licensure in Delaware. The application discloses details regarding the enterprise's name and address, its proprietors, and registration information. Applicants are required to remit a licensing fee of $230. Money transfer providers must possess net assets of no less than $100,000 and a security deposit of $25,000.

Florida

In Florida, requests for authorization to transfer funds are submitted to the Office of Financial Regulation. Candidates must present firm documents in addition to thorough information on the owners and shareholders. In order to receive more corporate activity data and verification, they must additionally submit a questionnaire. The application must be filed with $375 in license costs paid. In addition, candidates must provide a minimum capital of $100,000 as well as a $50,000 security deposit.

Georgia

The Department of Banking and Finance receives applications from money transfer companies seeking an MSB license in Georgia. The application demands disclosure of the location and operations of the firm, financial records, and details about the owners and directors. In addition, a $2,000 license fee and an additional $2,250 for the verification of regulatory data are needed. In Georgia, applicants are required to have a $50,000 minimum surety bond.

Hawaii

The authority overseeing the issuance of MSB permits in Hawaii is the Department of Commerce and Consumer Affairs. Those looking to acquire such permits must furnish comprehensive details regarding company ownership, business site, enrollment, financial records for both the business and personal accounts, and submit a questionnaire for data authentication. Following the submission of an application for an MSB license in Hawaii, applicants are required to remit a licensing fee of $2,000. The minimum required net assets should total $1,000. Additionally, a security bond of $1,000 is obligatory.

Idaho

Financial institutions must submit requests for an MSB permit in Idaho to the Department of Finance. The submission necessitates comprehensive particulars regarding the enterprise, proprietors, monetary status, and designated operational venues. Scrutiny after submission is indispensable for license acquisition, alongside a payment of $100. Money service providers in this jurisdiction are obliged to uphold a baseline equity of $50,000 and a surety bond not below $10,000.

Illinois

Individuals furnish details to secure an MSB permit in Illinois to the nearby Department of Financial and Professional Regulation. Papers for acquiring a money transmission permit in the Illinois region entail particulars concerning the enterprise, its proprietor, operations, and fiscal standing. Following this, a submission charge of $100 must be remitted for processing the application. The requisite amount of total holdings should be $35,000, while the minimum collateral deposit must reach $100,000.

Indiana

In this jurisdiction, inquiries are directed to the Department of Financial Institutions. In order to obtain a money transmission license in Indiana, information regarding the owners and directors of the enterprise is required. Additionally, the application must include details concerning:

  1. Financial details;
  2. Address and location of the enterprise.

The regulatory investigation constitutes an integral part of the licensing process. A fee of 1,000 USD is levied for the submission of an application. The minimum authorized capital amounts to 100,000 USD, with a guarantee deposit ranging from 10,000 USD to 300,000 USD.

Iowa

Entities providing money transfer services in this jurisdiction are required to submit all requisite documentation to the local Banking Division. The application for obtaining a Money Service Business license in Iowa must entail comprehensive details regarding:

  1. Owner, shareholders or directors of the business;
  2. Location of business and field of activity.

When submitting an application, it is requisite to undergo scrutiny conducted by the regulatory body, along with remitting a licensing fee amounting to 1,000 USD. The net asset value must not fall below 100,000 USD, while a collateral deposit of at least 50,000 USD is mandated.

Kansas

Entities engaged in business activities as financial services providers in Kansas must file formal requests with the State Bank Commissioner's Office to secure Money Services Business license. The formal request necessitates in-depth information regarding the entity and its owner. The licensing fee is as determined by the Commissioner. Moreover, a minimum required capital of $250,000 and a financial surety of $200,000 are mandatory.

Kentucky

Entities seeking Money Services Business authorization in Kentucky must file the requisite documentation with the Monetary Authority. The formal request encompasses information on the company's operational headquarters, past financial performance records, and details about the proprietors of the firm. A licensing application processing charge of USD 500 must be remitted after submission. A financial guarantee and minimum net worth requirement of USD 500,000 have been established.

Louisiana

The Office of Financial Institutions sets the requirements needed to receive an MSB license in Louisiana. Candidates must submit comprehensive information about the company, including its address, planned operations, and owners. There is a $3,000 application fee and a $100,000 minimum statutory capital requirement. Please be aware that a $25,000 guarantee deposit is needed.

Maine

Entrepreneurs seeking to obtain an MSB license in the state of Maine submit their licensure application to the Bureau of Consumer Credit Protection. The application requires the provision of information regarding:

  1. All business owners;
  2. Financial situation; and
  3. Business.

The licensing fee amounts to 500 USD. Financial service providers are required to contribute a minimum statutory capital and a security deposit of 100,000 USD each.

Maryland

Applicants for an MSB license in Maryland submit their documents to the local Department of Labor. The enterprise must furnish detailed information regarding its location, operations, finances, as well as its owners or shareholders. Following the application submission, a licensing fee of $1,000 USD must be remitted. Both the minimum authorized capital and the security deposit stand at $150,000 USD each.

Massachusetts

The Department of Consumer Affairs and Business Regulation receives applications from entrepreneurs looking to license MSBs in Massachusetts. In addition to providing comprehensive company data and financial records, applicants also need to outline their operational operations and submit to regulatory inspection. There is a license cost that varies annually. Furthermore, a security deposit of at least $50,000 is required; this jurisdiction does not have any minimum capital requirements.

Michigan

Financial service providers in Michigan that wish to receive an MSB license must apply to the Department of Licensing and Regulatory Affairs. During the application process, you will need to provide financial records, a description of the company's intended operations, and information about its owners. Entrepreneurs must maintain a minimum asset net worth of $100,000 and pay a $600 charge. They also need to provide collateral with a minimum value of $500,000.

Minnesota

The Department of Commerce receives the application for a Minnesota MSB license. To do this, financial data and details on the business owners, including their criminal background, must be submitted. The licensing cost is four thousand dollars. Money service providers are required to have a minimum of $25,000 in capital and a minimum of $25,000 in surety.

Mississippi

The Department of Banking and Consumer Finance is in charge of licensing in this state. In order to get an MSB license in Mississippi, applicants must submit an application for data verification, as well as details about the company's location and owners and shareholders. Once all required paperwork has been submitted, a $50 license fee has to be paid. Both the security deposit and the minimum authorized capital are $25,000.

Missouri

The Division of Finance scrutinizes documents submitted by entrepreneurs seeking to obtain an MSB license in Missouri. Applicants are required to furnish information regarding company ownership and stakeholders, as well as details concerning the business's location. Integral to the process is an investigation conducted by the regulatory body. Additionally, money service providers must remit a licensing fee amounting to 50 USD and possess a security deposit of 100,000 USD.

Montana

You cannot obtain an MSB license here.

Nebraska

In this jurisdiction, the MSB license is managed by the Department of Banking and Finance. Applicants must provide information about the owner, business participants, its location, and submit an application for investigation. Afterward, the licensing fee ($1,000) must be paid, and the minimum net asset value must be $50,000. Additionally, a surety bond of no less than $100,000 is required.

Nevada

In Nevada, financial service providers seeking an MSB license must apply through the Department of Business and Industry. The application process entails providing business details, citizenship information for all owners and shareholders, and submitting to an investigation and background check. Additionally, there's a $375 license fee and a minimum capital requirement of $100,000. Furthermore, a $10,000 surety bond is mandatory for licensure.

New Hampshire

Please note that entrepreneurs submit an application for obtaining an MSB license in New Hampshire to the Banking Department. The application details include information about all owners and members of the business. The licensing fee is $500, with a statutory capital requirement of $1,000,000. Additionally, a security deposit of no less than $100,000 is required.

New Jersey

The New Jersey Department of Banking and Insurance is adjudicating applications from individuals endeavoring to secure Money Services Business license. Applicants furnish comprehensive details regarding the enterprise, company proprietors, and contemplated operations. The regulatory body meticulously scrutinizes the information prior to granting or denying the petition. The licensing fee stands at $700 USD. The minimum required capital and security deposit must be $100,000 USD each.

New Mexico

The New Mexico Regulatory Authority accepts submissions for MSB licenses within the state. Financial institutions file a submission for a background check in addition to providing financial statements and details regarding the enterprise and its proprietors. There is a $150 licensing fee and a $100,000 minimum statutory capital threshold. Furthermore, a $10,000 surety bond needs to be posted.

New York

In this state, entrepreneurs submit applications to the Department of Financial Services. Applicants provide information about the enterprise, its activities, and owners in order to obtain an MSB license in New York. The licensing fee is $3,000. Although the minimum net capital is not specified, a surety bond of not less than $500,000 is required.

North Carolina

There are currently no regulations or requirements in place to obtain an MSB license.

North Dakota

Applications for licensure in this jurisdiction are made to the Department of Labor and Human Rights. Applying for an MSB license in North Dakota requires applicants to provide comprehensive information about the business, its owners, its location, and proof of its financial history. There is a $1,000 license fee and a $100,000 minimum allowed capital. Furthermore, a $100,000 minimum surety bond is needed.

Ohio

Providers of financial services transmit information about their intention to obtain an MSB license in Ohio to the Department of Commerce. The licensing procedure entails the submission of necessary documents, investigation, and verification of the criminal history of business owners. Applicants must pay a state fee, as well as possess a minimum statutory capital of $500,000 and a security deposit of $300,000.

Oklahoma

In Oklahoma, those seeking to obtain an MSB license in America submit documents to the Banking Department. To formalize the request, information about the business activity, company location, and its owners is required. The licensing fee amounts to 3,000 USD, with a minimum net worth of assets set at 275,000 USD. Obtaining an MSB license in Oklahoma necessitates providing a collateral deposit of no less than 50,000 USD.

Oregon

In Oregon, businesses planning to operate as Money Services Businesses undergo a rigorous application process overseen by the Division of Financial Regulation. This process involves providing extensive documentation about the company, including ownership details and financial history. A non-negotiable licensing fee of $1,000 is required, along with demonstrating a minimum net worth of $100,000. Furthermore, MSBs must secure a surety bond of at least $25,000 to ensure compliance with regulations.

Pennsylvania

Within this jurisdiction, money transmission service providers must submit licensure applications to the Department of Banking and Securities. To secure Money Services Business license in Pennsylvania, details concerning each principal, the operational location, and the enterprise's functionalities are mandated. Subsequently, the regulatory body executes verification of documentation. The licensure fee stands at $1,000, with a minimum requirement of net worth established at $500,000. Additionally, a surety bond of no less than $1,000,000 is necessitated.

Rhode Island

Applicants seeking to obtain an MSB license in Rhode Island must submit applications to the Department of Business Regulation. This entails conducting an investigation and fingerprinting the company owners, as well as providing detailed information about the enterprise, its location, and shareholders. The licensing fee is $180, with a minimum net worth requirement of $50,000. Additionally, a security deposit of $50,000 is required.

South Carolina

There are currently no regulations or requirements in place to obtain an MSB license.

South Dakota

In South Dakota, individuals desiring to obtain an MSB license in the United States submit licensing applications to the Department of Labor and Regulation. Applicants furnish detailed information regarding the business and its proprietors, the company's location, financial history, and initiate a request for investigation. To secure an MSB license in South Dakota, a licensing fee of $1,000 and a minimum capital requirement of $100,000 are mandated. Additionally, a collateral deposit of no less than $100,000 is requisite.

Tennessee

The Tennessee Department of Financial Institutions is reviewing applications for Money Services Business licenses from entrepreneurs. Applicants must provide detailed information about their business, including owners and shareholders, as well as comprehensive financial documents. The licensing fee is $250 USD, with a minimum net worth requirement of $100,000 USD. Additionally, a security deposit of at least $50,000 USD is required.

Texas

Applications from business proprietors intending to secure Money Services Business license in Texas are reviewed by the regulatory authority. Financial service providers provide comprehensive disclosures about the business, its proprietors, and investors, undergoing due diligence of their background checks. The application fee stands at $2,500 USD, with a minimum net worth requirement of $100,000 USD; and a performance bond of no less than $300,000 USD.

Utah

Providers of financial services in Utah submit applications for licensing to the Department of Financial Institutions. Applicants undergo scrutiny and furnish detailed information regarding the business and operations of the company. The licensing fee amounts to $100, with a minimum capital requirement of $1,000,000. Applicants must also possess a security deposit of no less than $50,000.

Vermont

In Vermont, the authority overseeing the approval of licenses for financial services is the Department of Financial Regulation. Those looking to operate as Money Service Businesses need to submit a formal application and undergo a rigorous screening process. This process involves disclosing the company's headquarters, planned financial operations, financial statements, and ownership structure. There's an initial license fee of $1,000, along with a requirement to maintain a collateral deposit of at least $100,000 and meet a minimum net worth of $100,000.

Virginia

In Virginia, those seeking Money Services Business license face a thorough review by the State Corporation Commission. They must provide detailed information about their company's operations, finances, and ownership. To qualify, a minimum net worth of $200,000 is required, along with a $1,000 licensing fee. Additionally, money transmitters must maintain a $25,000 surety bond.

Washington

Entities seeking to procure an MSB license in Washington must submit all requisite documentation to the Department of Financial Institutions. Applicants are subject to vetting and data validation processes, in addition to furnishing comprehensive details regarding the enterprise and its stakeholders. The licensing fee stands at $1,000, with a minimum net worth requirement of $10,000 for every $1 million of the volume transmitted. A security deposit of no less than $10,000 is mandatory.

West Virginia

Those who want to apply for a West Virginia MSB license must submit the required paperwork to the Division of Financial Institutions. Candidates submit corporate details, such as its address and operations, and are subject to the necessary examination. There is a $1,000 USD license charge and a $50,000 USD minimum net worth requirement. A $300,000 USD security deposit is required.

Wisconsin

Those who want to apply for a license to transfer money in Wisconsin can do so through the Department of Financial Institutions. The paperwork needed is the same as it is for the states mentioned above. The payment of an obligatory 300 USD charge and a minimum 10,000 USD security deposit are two of the main criteria.

Wyoming

Financial service providers apply to the Division of Banking for an MSB license in Wyoming. Applicants provide information on the ownership, management, and structure of the company. After that, the authorities who issue permits do out inspections. There is a 1,500 USD charge and a 25,000 USD minimum net worth requirement. Furthermore, a minimum guarantee deposit of $10,000 USD is required.

Conclusion

Each state sets forth its requirements regarding the information to be included in the application, minimum statutory capital, and the amount of the surety bond. There are three states in the country where obtaining a US MSB license is not possible: Montana, North Carolina, and South Carolina. To learn more about this topic, you can contact us and request a consultation on obtaining an MSB license in the United States of America.