In New York, there is no business related to money transmitting operation without a license. Such a license is issued by the New York Department of Financial Services. It is very hard to get a Money Transmitter license in New York. The process requires a lot of paperwork as well as professional and business qualifications on a high level.
What are the requirements for a New York Money Transmitter License?
Everyone who wants to apply for a Money Transmitter license in New York has to prepare a long list of required documents. From 2017, the procedure is conducted via the Nationwide Multistate Licensing System and Registry (NMLS), but the New York Department of Financial Services is still the license issuing body. New York Money Transmitter License (NYMTL) application process is starting with Company Form (MU1). According to NMLS, license requirements for money transmitters are found primarily in Article 13-B of the New York Banking Law (BL) and the regulations thereunder.
Important documents required for application are:
- Credit Report for persons
- Audited financial statements of the last two years (in GAAP)
- Agent Locations
- Bank Account details which will be used for the business
- Information about a Chief compliance officer
- Anti- Money laundering program
- Organizational Documents such as Company registration
- Business Plan with details of Marketing strategies/Products/Target markets
- Certificate of Authority/Good standing
- Samples of documents and forms which will be used by the business for customers
- The flow of Funds Structure
- Management chart and Organizational chart showing ownership percentage
- Permissible investments maintained by company and affidavit to maintain permissible investments
- Information regarding control persons residing in foreign jurisdictions
- FinCEN registration, confirming registration as a Money Services Business
- New York state requires applicants to obtain a surety bond before they can get licensed.
The required documentation will vary from applicant to applicant and you may need to provide extra documents for each control person.
What is the process of obtaining the Money Transmitter license in New York?
All required documents must be uploaded to the Document Uploads section of the Company Form (MU1) in NMLS. It is recommended to follow Document Upload Descriptions and Examples. Certain documents have to be mailed. Signatures are needed at all required places as well as fingerprints for Control Individuals and Compliance Officer. The Application will then be processed by the New York Department of Financial Services. No time limit is provided for processing. The state may reject your application if you have not met certain prerequisites before submission.
How much does it cost to obtain a New York Money Transmitters License?
The New York money transmitter license cost is $3,000, which is the amount of the application fee. The credit report for control persons is $15 per each control person. Uniform Authorized Agent Reporting Annual Processing Fee (UAAR Fee): An annual fee of $0.25 for each active authorized agent/delegate location reported through NMLS is invoiced on November 1st. There is no fee for the first 100 active agents reported (Companies with 100 agents or less are not subject to the UAAR Processing Fee). Cap on UAAR Fee at $25,000. Bonding requirements for a New York Money Transmitter License are determined by the superintendent, the minimum requirement is $500,000. The annual license fee has to be paid every year as determined by the regulator. Uniform Authorized Agent Reporting Annual procedure must be completed. Legal fees vary between $80,000-$120,000 (All NY Licenses).
Empire Global has a team of experienced professionals who will assist you through the entire process of the New York Money Transmitter License application including assistance in the preparation of documents, submission of application and responding to any queries from the New York Department of Financial Services. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a New York Money Transmitter License.