Skip to content

Money Transmitters


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:

  • authorized delegates of a licensee who have a contract with a licensee
  • the U.S. government
  • the U.S. Postal Service
  • the state or any political subdivision
  • banks
  • credit unions
  • savings associations
  • bank holding companies

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. 

Requirements:


View the Minnesota Money Transmitter License Description 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.

Renewal - Transition Checklist:


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.

Changes to the License:

Questions about the license requirements should be directed to 651-539-1600.

Information on Updates to Money Transmitter Regulations

 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.

Provisions Included in Section 53B.27

  • Requirement of a clear, concise, and conspicuous consumer fraud warning to be included on all transmittal forms used by consumers to send money to an individual.
  • Authorized ability as recommended by the Commerce Department in consultation with licensed money transmitters to set maximum transaction amounts for money transmissions to countries with high incidence of schemes to defraud consumers.
  • Money Transmitters must provide the sender verification of the physical location where the money transfer was received and the name of the person who received the money transfer upon request by the sender.
  • Prohibition on the receipt of the money transmission at a physical location that is not the physical location selected by the sender without prior authorization.
    Establishment of a no-transmit list of individuals who are prohibited from making or receiving money transmissions

Update on  Section 53B.27 to Ensure Compliance

  • To ensure compliance with the requirements mandated by statute, Money Transmitters should consider providing a means by which senders or their authorized delegates:
  1. may request to be notified by the Money Transmitter if a person has attempted to receive their money transmission at a physical location other than the one they have selected, and
  2. may request that the Money Transmitter provide verification of the location where the money transfer was received and the name of the person who received the money transfer.
  • 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.

View a list of licensed companies