Obtaining a Money Transmitter License in California
The regulating body that is in charge of issuing a California Money Transmitter License is the California Department of Business Oversight (DBO). Nationwide Multistate Licensing System and Registry (NMLS) handles the process of applying for this license.
It is usually a long process to obtain a California Money Transmitter License. Multiple requirements and documents are needed for the application procedure:
· Company form MU1 (this is the main application form)
· Individual form MU2 (this must be completed by individuals in a position of control)
· Anti-Money Laundering (AML) / Bank Secrecy Act (BSA) policies which explain specifically how you will comply with these laws
· A credit report for individuals in positions of control (authorized through NMLS)
· An audited financial statement prepared by a certified public accountant (CPA) in accordance with Generally Accepted Accounting Principles (GAAP)
· A business plan that outlines your products, target market, fee schedule, and more
· Your company’s Certificate of Authority or Certificate of Good Standing
· A Flow of Funds Structure that describes the different types of transactions or services you will conduct, from the beginning to the completion of the transaction
· Document samples of the receipts for transactions and of payment instruments
· A management chart that identifies directors, officers, and managers
· An organizational chart that includes the percentage of ownership of direct and indirect owners, and subsidiaries and affiliates
· A California money transmitter bond
· FDIC 3064–0006 — Inter-agency Biographical and Financial Report Form
· FDIC 3064–0006 — Department of Business Oversight Supplemental Instructions (Rev.05–17) (PDF)
· DBO 2 — Personal Financial Statement (Rev.01–19)
· DBO 3 — Confidential Resume (Rev.01–19)
· DBO 525- Money Transmitter Call Report Form For Licensees That Are ON the NMLS (Rev.04–19) (Excel)
· DBO 550 — Emergency Contact Person Information (Rev.05–17)
· DBO 2110 — Application for a License to Engage in the Money Transmission Business (Rev. 01–19)
· Registration with FinCEN as a Money Services Business
· Surety bonds
Applications should be submitted to the DBO with: signatures at all required places, required an application fee, submission of fingerprints of all responsible persons and all enclosures and financial statements as stated in the form.
Additionally, several fees should be considered: License application Fee of $5,000, a minimum of $250,000 and a maximum of $7,000,000 for a surety bond, legal fees between $35,000 and $100,000, etc. Each year, an applicant should pay an annual license fee.
As a full-service Global Law Firm focused on global I-gaming, Financial Services, Licensing, Asset Management, Securities, International Business & Tax; we value hearing from you, no matter where in the world you are. If you have any question, get in touch with us anytime via email, or visit us at www.empireglobal.partners
E-mail: lion@empireglobal.partners
Legal Disclaimer:
This website, or this blog post and its contents do not create and are not meant to offer any legal advice, and this is not an advertisement or solicitation but merely a legal-minded expression of fact or opinion meant for public consideration, not to be substituted for legal advice.
Full Disclosure — Lionel Iruk, Esq is the principal attorney and manager at Empire Global Partners, PLLC and Iruke Legal, Inc.
Published at Sun, 06 Oct 2019 17:55:36 +0000
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