Texas is known as a popular business destination in the US. Under the Texas statute, an entity may not conduct money transmission for people located in Texas or receive money or monetary value for transmission by any means, without obtaining a Money Transmitter License. A money services business that conducts money transmission activities as defined by Chapter 151 of the Texas Finance Code is licensed by the Texas Department of Banking. To apply for a Money Services Business license, you must file an application with the Texas Department of Banking.
To apply for a Money Transmission License, you must fill a License Request via NMLS and submit all other forms, schedules, exhibits, and attachments listed in the NMLS TX-DOB Money Transmission License New Application Checklist. According to the Texas Department of Banking, beginning July 17, 2017, new applicants for a Money Transmission License must apply via NMLS a web-based system where companies can maintain a single record which they use to apply for, maintain, and surrender license authorities in one or more states.
What are the requirements for Money Transmitter License in Texas?
In order to apply for the Texas Money Services Business License (MSB), the following documents are required:
- Fulfilling the criteria about financial stability and background check for the controlling shareholders, applicant and responsible applicants
- The financial statement must show a net worth of at least $500,000 for a Money Transmission License
- Extensive background checks on the applicant and its principals
- Detailed Business Plan
- Audited Financial Systems
- Interim financial statement
- Certificate of Good Standing
- Organizational documents such as Company registration
- Certification of Regulatory Compliance
- Among them is posting a Texas money transmitter surety bond. The bond amount should be between $300,000 and $2 million
There are special requirements for virtual currencies such as:
- Compliance with instructions under Texas Department of Banking’s Supervisory Memorandum – 1037 issued on April 3, 2014
- Third-party security audit of their relevant computer systems
Additional license required is registration with FinCEN as a Money Services Business. The documentation required will vary from applicant to applicant.
What is the process of obtaining the Money Transmitter License?
- To apply for a Money Services Business license, you must submit an application with the Texas Department of Banking.
- To apply for a Money Transmission License, you must file a License Request via NMLS
- Application has to be paid to the Texas Department of Banking with signatures at all required places and notarization of signatures
- Required filing fee
- The Application must be fully completed and all of the required information must be provided.
- The Application will then be processed by the Texas Department of Banking. No time limit is provided for processing.
How much does it cost to obtain a Texas Money Transmitter License?
The filing fee is $5,000 for a currency exchange license or $10,000 for a money transmission license. The filing fee is non-refundable. A filing fee must be submitted at the same time you submit your application, otherwise, your application will be returned. Department may charge investigations fees for processing applications that take longer than normal or where an onsite investigation is necessary. Renewal license fee has to be paid every year. Licenses have no expiry date unless revoked. Legal fees vary from $5,000.00 to $10,000.
Empire Global has a team of experienced professionals who will assist you through the entire process of Texas Money Transmitter License application including assistance in the preparation of documents, submission of application and responding to any queries from the State. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a Texas Money Transmitter License.