What are the requirements for my proposed responsible individual?
- Hold W-2 status with the licensee
- Be knowledgeable of the laws and rules implementing the act
- The proposed responsible individual must be a citizen of the United States or provide documentation that they have obtained legal immigration status to work in the United States.
What financial documents should I provide?
- Current financial statements are required (Balance Sheet, Income Statement, and Statement of cash flows) as of the most recent quarter end for the business.
- Most recent financial statements are required for the past 2 years Audited, if available or unaudited if a newly formed business
- If a newly formed business, also upload documentation supporting your method and source of capitalization (where the funding for your business comes from)
- If you are a wholly owned subsidiary of another corporation, you may upload the parents consolidated audited financial statements of the current year and prior two years, or the parents form 10K reports filed with the US Securities & Exchange Commission for the prior three years in lieu of financial statements.
- Tangible net worth is calculated at $10,000 for every $1,000,000 of total company-wide money transmission and payment instrument dollar volume over the previous twelve months. Minimum $10,000, Maximum $3,000,000.
- Virtual Currency minimum TNW if storing on behalf of others (wallet) is $100,000.
What is required in my BSA/AML Risk Assessment?
- A risk assessment is required that specifically evaluating all risk areas of the applicant including products, services, customers, entities, volume and geographic locations. Includes steps the company will take to mitigate the risks and the risk rating for the policy. See an example here: www.csbs.org/bsa-aml-self-assessment-tool and here: www.dfi.wa.gov/sites/default/files/developing-risk-assessment-guidance.pdf
When is a third party background check required?
- A third party background check is required if you have not lived in the United States continuously for the last 5 years. It must contain, at minimum: A comprehensive credit report/history, civil court and bankruptcy, court records for the past 5 years including a search of the court data in the country(ies), states, towns, where the individual resided, worked and in contiguous areas, criminal records for the past 5 years, including felonies, misdemeanors and violations including a search of court data in the country(ies) states, towns, where the individual resided and worked and in contiguous areas.
What are the requirements for my authorized delegates?
- A person accepting consumers' funds for transmission through an exempt or excluded entity under RCW 19.230.020 is not an authorized delegate but is a money transmitter and must be licensed under the act.
- Any person you designate to provide money services on your behalf is an authorized delegate, regardless of whether that person would be exempt or excluded from the application of chapter 19.230 RCW if they provided money services on their own behalf.
- Your authorized delegates must be physically located in the state of Washington unless you have received prior approval from the director to designate an authorized delegate physically located outside of the state of Washington.
- A written contract between you and an authorized delegate must be uploaded into NMLS
What if I don’t have a bank account?
- All MT applicants and licensees are expected to hold business bank account for conducting money transmission. Under certain conditions DFI will issue a money transmitter license without proof of a business bank account. For more information please contact us at cslicensing@dfi.wa.gov or (360) 902-8703.
What are the surety bonding requirements?
- Each money transmitter licensee shall maintain a surety bond in an amount based on the previous year's money transmission dollar volume; and the previous year's payment instrument dollar volume. The minimum surety bond must be at least ten thousand dollars, and not to exceed five hundred fifty thousand dollars.
What happens if a company fails to submit a complete application?
- Your application cannot be processed without all of the required materials and may be abandoned. Please review the MT new application checklist prior to submitting your application.
How do I know if my company needs a license?
- Please review the definition of money transmission.
- If the company is seeking an exclusion from the Act, please include the company’s exclusion argument. Please see RCW 19.230.020 for exclusions from the Act.
How do I surrender my Money Transmitter license?
My company was not formed in the United States, may I apply for the Money Transmission license?
- No. If your company was formed in a foreign country you must create a US subsidiary to apply for the money transmitter license.
When does my money transmitter license expire?
- Money Transmitter licenses are perpetual.
- You will need to complete your annual assessment and other requirements in order to maintain the current license status.
- The NMLS system fee needs to be paid in the NMLS system each year between 11/1 and 12/31 to maintain your account with the NMLS system