The Licensing Authority in charge of the South Dakota Money Transmitter License (SDMTL) is called the South Dakota Department of Labour and Regulation. To apply for an SDMTL, you have to first register with the Nationwide Multistate Licensing System and Registry (NMLS). In NMLS, you will have to first complete a Company Account Request Form and identify a Primary Account Administrator and a Secondary Account Administrator.
What are the requirements to apply for a South Dakota Money Transmitter License?
To obtain a South Dakota Money Transmitter License, the following documents are required:
- Authorized Agents (Delegates) locations
- Resident/ Registered Agent Details
- Bank Account details
- Certificate of Authority/ Good standing
- FBI Criminal background check
- Credit report
- Background investigation
- Information about filings with US SEC/ similar regulator within last 1 year
- Trust account authorization
- Audited financial statements for the last two years and a current financial statement prepared for the licensee, dated no more than 90 days from the date of this application. The financial statement should show a net worth of $100,000 at all times
- List of permissible investments
- Company staffing and internal policies
- Registration to do business in South Dakota
- Business Plan
- AML/ BSA policy with an independent review
- Document samples
- Management Chart and Organisational Chart showing ownership percentage
- Company Formation documents
- Registration with FinCEN as a Money Services Business
- Surety bonds
The documentation required will vary from applicant to applicant.
What is the process for obtaining a South Dakota Money Transmitter License?
The application has to be made to the South Dakota Department of Labour and Regulation by NMLS. Documents have to be uploaded on the NMLS website and certain documents have to be mailed. Important requirements are 1) Signatures at all required places; 2) Required filing fee, and 3) All enclosures and financial statements as stated in the form. No time limit is provided for the processing of the application.
How much does it cost to obtain a South Dakota Money Transmitter License?
The total License fee for NMLS Application costs $1600, while the Renewal Fee is $800. Net worth should not be less than $100,000 by GAAP. Surety Bond should be $ 100,000 furnished by a surety company authorized to conduct business in South Dakota. Director may increase the amount to $500,000. Legal Fees vary between $8,000 and $12,000.
The license is issued for one year and expires on the 31st of December. Forms for renewal are available between 1st November to 31st December.
Empire Global has a team of experienced professionals who will assist you through the entire process of the South Dakota Money Transmitter License application including assistance in the preparation of documents, submission of application and responding to any queries. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a South Dakota Money Transmitter License.