Licensing Authority in charge of issuing a Vermont Money Transmitter License (VTMTL) is the Department of Financial Regulation.
What are the requirements to apply for a Vermont Money Transmitter License?
Following documents are needed for obtaining a Vermont Money Transmitter License:
- Vermont Secretary of State Registration
- The credit report for control persons
- FBI Criminal Background Check for MU2 Individual
- Authorized Agents (Delegates) locations
- Resident/ Registered Agent Details
- Primary Contact Employees
- Non-primary Contact employees
- Bank Account details
- List of Direct Owners/ Executive Officers/ Indirect Owners
- Qualifying individual
- Credit Report
- Certificate of Authority/ Good standing
- Trust Account authorization
- Credit Report explanations for any MU2 individual does not or has not resided in the US for at least 5 years
- Audited financial statements in GAAP prepared by a CPA, dated within 90 days of your fiscal year-end for the last two years. The financial statement should show a net worth of $100,000 at all times. If the applicant is a start-up company, only an initial statement of the condition is required.
- Business Plan
- AML/ BSA Policy with an independent review
- Document samples
- Management Chart and Organisational Chart showing ownership percentage
- Company Formation documents
- Tax- Certification for Company
- Registration with FinCEN as a Money Services Business
- Surety bonds
The documentation required will vary from applicant to applicant. Moreover, some special requirements could apply. It means that only persons located in Vermont can act as an authorized delegate on behalf of a Vermont licensed Money Servicer. To engage in money transmission, an authorized delegate that does not have a location in Vermont must either (1) qualify for one of the exclusions outlined in 8 V.S.A. § 2501 or (2) obtain a Vermont Money Transmitter license in its name.
What is the process for obtaining a Vermont Money Transmitter License?
To apply for a VTMTL, 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.
The application has to be made to the Department of Financial Regulation in Vermont. 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. Decisions on licenses are normally made within 60 days.
How much does it cost to obtain a Vermont Money Transmitter License?
Several costs will apply when obtaining a VTMTL: registration fee of $500, application fee $1000 and a license fee of $25 for each authorized delegate location. Additional costs are FBI Criminal Background Check ($36.25 per person), Credit report Fee for each individual ($15). 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. Annual Renewal Fee cost $500, while the license fee is $25 for each authorized delegate location (not to exceed $3500 in total).
Net worth should be at least $100,000 by GAAP, while Surety Bond should be $100,000 initially plus $10,000 per additional location (maximum $500,000 furnished by a surety company authorized to conduct business in Vermont). Legal Fees vary between $8,000 and $12,000.
The license is issued for one year and expires on 31 December. Licenses must be renewed before the 1st of December.
Empire Global has a team of experienced professionals who will assist you through the entire process of the Vermont 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 Vermont Money Transmitter License.