In general, money transmitting involves sending money within the United States or to another country on behalf of someone else for a fee. It is classified as a type of money service business (MSB). The specific definition of a money transmitter varies by state, as do the licensing requirements. Every state requires licensing of money transmitters except for Montana, which requires that they go through the state’s business registration process. Money transmitters that operate in multiple states will need to be licensed in each of them.
Accordingly, under Delaware statute, any check, draft, money order, personal money order, or other instruments for the transmission or payment of money is considered a transmission, and any entity selling, issuing, or engaging in the activity must obtain a money transmitter license.
What are the regulatory requirements for obtaining a Delaware Money Transmitter License?
- Generally, a Money transmitter license requirements vary state by state but usually include registration with the Financial Crimes Enforcement Network (FinCEN), background checks, application fees, security (the surety bond), maintenance of permissible investments, minimum net worth, business plan, and a compliance program.
- Hence, Tetra Consultants’ team of experts has enlisted the statutory requirements to have complied in order to attain a Delaware Money transmitter license.
Anti-Money Laundering (AML) Compliance Program
- It is mandatory for all money services businesses to develop, implement, and maintain an effective AML program with the purpose of preventing and deterring money laundering and the financing of terrorist activities.
- The AML program must include the necessary policies and internal controls to ensure compliance with the verification of the customer’s identity, filing of reports, creation and maintenance of records, and response to law enforcement requests.
- Tetra Consultants will provide extensive support with the development of compliance programs and policies best suitable to your business model and needs.
Minimum net worth
- To apply for a Delaware Money Transmitter License, you must have a minimum net worth of US$100,000
Documents required for a Delaware Money Transmitter License
Registering as a transmitter in the state of Delaware requires the following documentation:
- Board Resolution authorizing this company’s purpose
- List of principal or senior officers’ full names, titles, residence addresses, business addresses, dates of birth, Social Security numbers, and occupations and their resumes and financial statements
- List Directors of the Corporation including full names, titles, residence addresses, business addresses, dates of birth, Social Security numbers and occupations, and their resumes and financial statements
- List of all stockholders of the corporation including full names, residence addresses, business addresses, dates of birth, Social Security numbers, and number of shares held
- Current balance sheet and income statement
- Financial statement of the parent company
- Proof of registration with the Delaware Division of Corporations
- Information about designated individual
- Letters of business reference (at least 3)
- Proof of registration with FinCEN as a Money Services Business
- Surety bonds
Bonding requirements for Delaware money transmitters include:
- US$25,000 surety bond or irrevocable Letter of Credit
- US$5,000 for each additional location, not to exceed US$250,000
- Expiration of the bond cannot be earlier than the license expiration
The other requirements pertaining to the maintenance of the list of agents, reporting, and maintaining of records to apply for such a license keep on changing from state to state. Hence, we recommend you get in touch with Tetra Consultants wherein we will evaluate your business and provide further guidance on such requirements.
Steps to acquire Money Transmitter License in Delaware
- Tetra Consultants’ team of licensing experts is well-versed in the licensing requirements of a money transmitter license and the process to acquire the same.
- The timeline and steps to obtain such a license depend on the services you need from Tetra Consultants. If required our team will assist from the very start of entity formation in the country till the final step of securing the license and maintenance of such a license.
- Tetra Consultants advises you to read through this guide to fully understand the steps prevalent during the process of acquisition of the Delaware Money Transmitter License.
Step 1: Application for a federal money transmitter license
- Tetra Consultants will assist you in preparing the documents required for the application for a USA MSB License. Documents required include the FinCEN Form 107, business volume estimate, information about the ownership and control of the money services business, and a list of agents that will be authorized to sell or distribute MSB services.
- Once the required documents have been consolidated, Tetra Consultants will register your institution as a money services business with the Department of the Treasury through the BSA e-filing system.
Step 2: Implementation of Anti-Money Laundering (AML) Program
- All money services businesses are required to develop and implement an AML program within 90 days after the business has been established.
- Tetra Consultants will assist in providing the necessary legal expertise to implement an AML program that complies with Federal Regulations.
Step 3: Procurement of a Delaware Money Transmitter License
- Most money services businesses that provide money transmitter or money transfer services in the US will be required to obtain a money transmitter license from the state they want to operate in and the regulations for money transmitters differs based on the state your money services business operates in.
- Generally, a Delaware money transmitter license will require a license application form, an AML compliance program, financial statements, a business plan, a surety bond, a background check, and a minimum capital amount.
- Once the above requirements are fulfilled, Tetra Consultants will proceed to apply for an MSB license in Delaware through the local regulatory body which is the Delaware Office of the State Bank Commissioner.
- Tetra Consultants will assist you in procuring the Delaware money transmitter license for your business.
- In addition, Tetra Consultants can also assist with attaining other offshore financial licenses depending on your long-term business goals. We can assist you in obtaining a specific license or authorization from your selected jurisdiction, in order to lawfully operate financial businesses.
- Contact us to find out more about how to secure a USA MSB License to conduct Money Services Businesses, as well as the incorporation process to register company in Delaware, USA. Our team of experts will revert within the next 24 hours.