Persons engaged in the business of money transmission must obtain a license from the Department of Commerce. A licensee may conduct business in Minnesota at one or more locations, or through one or more authorized delegates, or both, under a single license.
Minnesota Statutes, Chapter 53B exempts certain entities from the licensing requirements including, but not limited to:
On October 1, 2013, Minnesota will begin using Nationwide Mortgage Licensing System and Registry (NMLS) as a new way to apply for, renew, and maintain your Money Transmitter license. NMLS streamlines the application process as well as the maintenance of your company’s license by providing a central location for company information and reducing the items you must mail to the Department of Commerce. Effective October 1, 2013, all new applicants must use the NMLS to apply for a Money Transmitter license.
View the Minnesota Money Transmitter License Description (.pdf) to see the prerequisites at a glance and application requirements.
$4,150 initial license application fee. The fee is nonrefundable. New Application Checklist (.pdf)
Net Worth Qualifications - Each licensee engaging in money transmission in three or fewer locations in the state, either directly or through authorized delegates, must have a net worth of at least $25,000. Each licensee engaging in money transmission at more than three locations in the state, but fewer than seven locations, either directly or through authorized delegates, must have a net worth of at least $50,000. Each licensee engaging in money transmission at more than six locations in the state, either directly or through authorized delegates, shall have a net worth of $100,000 and an additional net worth of $50,000 for each location or authorized delegate located in the state in excess of seven, to a maximum of $500,000. Net worth shall be calculated in accordance with generally accepted accounting principles.
Good Standing - Every corporate applicant must be in good standing in the state of its incorporation. All noncorporate applicants shall be registered or qualified to do business in Minnesota.
Surety Bond - Each licensee must provide a surety bond, irrevocable letter of credit, or other similar security device acceptable to the commissioner in the amount of $25,000. If the licensee operates at more than three locations, but less than seven locations, through authorized delegates or otherwise, then the amount of the security device must be increased to $50,000. If the licensee operates at more than six locations, through authorized delegates or otherwise, then the amount of the security device must be increased by $50,000 for each location over six, up to a maximum of $250,000.
Statutory Trust - Each licensee must at all times possess permissible investments having an aggregate market value of not less than the aggregate face amount of all outstanding payment instruments sold by the licensee or reported as sold by an authorized delegate, to the extent the dollar volume exceeds the surety bond.
View the Minnesota Money Transmitter License Company Transition Checklist (.pdf) to see the requirements for renewing your Money Transmitter license for 2014. Transitioning your existing money transmitter license starting October 1, 2013, will complete the renewal for 2014.
Licenses issued under Chapter 53B expire annually on December 31.
$2,650 renewal fee.
Questions about the license requirements should be directed to 651-539-1721.
In 2012, Minnesota Statutes Chapter 53B Section 27 was added to the Money Transmitter Act requiring each Money Transmitter to establish fraud prevention measures, including fraud warnings to consumers and fraud prevention training for agents involved with money transmissions.
The Commerce Department recommends that Money Transmitters retain documentation of senders’ requests, selected physical locations, authorizations and the Money Transmitter’s verifications.
Money Transmitters will not be required by the Commerce Department to comply with the No-Transmit List requirements while the operations of the list are developed and until they are fully implemented. The No-Transmit List requirements are included in Minnesota Statutes, Chapter 53B, section 53B.27, subdivisions 3 and 4. Further guidance is anticipated.