The Money Transmitter licensing is regulated on a state level and requirements can differ across states. Each state follows its own unique licensing process but the general steps a new license applicant must go through are very similar. The Alabama statute says that every, person, firm, company, or corporation that wants to engage in business or to sell, issue, or receive money, must get a license. The person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless it is licensed. A license for Money Transmitter in Alabama (ABMTL) is issued by Alabama Securities Commission (ASC) under the Alabama Monetary Transmission Act, Code of Alabama 1975, § 8-7a-1.
What are Alabama Money Transmitter license requirements?
The basic requirements which have to be fulfilled by an applicant are as follows:
- Legal name, business address, e-mail address
- Office location
- Criminal record of the applicant within 10 years
- Description of the money transfer business within Alabama and other states
- Details of other business activities previously provided by the applicant
- Name and address of bank account used for deposit and transmission
- Copy of the applicant’s audited financial statements for the most recent fiscal year
- Management Chart and Organizational Chart showing ownership percentage
- Documents detailing officers’, managing partners’, and principals’ experience with operating money transmitters
- Documents outlining procedures for receiving money, confirming receipt, safeguarding money, and transmitting money to its designated location
- You need to obtain a surety bond to protect the public. The minimum bond fee is $100,000 or the average daily outstanding obligations for money received for transmission in Alabama plus 50 percent of the average daily outstanding payment instrument and stored value obligations in Alabama, whichever is greater.
To obtain (and maintain) the license, the State requires an application, a $500 fee, and annual renewals. Additional Licenses required registration with FinCEN as a Money Services Business. Once the required information has been submitted, your application will be reviewed by the state. The State may reject your application if you have not met the requirements. Upon approval, the license will be sent to the address.
License is issued for a period of one year and expires on the 31st of March every year. Application for renewal has to be filed before the 15th of March. The renewal license shall become immediately effective upon the expiration of the current license if the licensee has submitted the renewal fee pursuant to subsection and the required reports pursuant to subsection to the Commission.
If your application is completed correctly and you have provided all the necessary information, you will be issued your money transmitter license shortly. Legal fees vary between $8,000-$12,000.
Empire Global has a team of experienced professionals who will assist you through the entire process of the Alabama Money Transmitter process application, including assistance in the preparation of documents, submission of application, and responding to any queries from the Commission. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for an Alabama Money Transmitter License. Our company offers exclusive crypto money transmitter bond programs, which will allow you to obtain these bonds in any state that requires them.