New York Money Transmitter License Guide

In the state of New York, entities engaged in the business of receiving money for transmission – as well as entities selling/issuing checks or money orders – are required to hold a Money Transmitter License.

All NY Money Transmitter licenses are supervised and issued by the New York State Department of Financial Services (DFS) . The license application process is handled by the Nationwide Mortgage Licensing System (NMLS)

All applicable forms can be found online on the New York NMLS page .

The NY Money Transmitter license application checklist is available here

• Company Form (MU1): In NMLS, the MU1 form serves as the license application. The following requirements must be submitted through NMLS.

• Financial Statements: Submit your two most recent audited financial statements. The statements must be prepared by a Certified Public Accountant and dated within 90 days of the end of the fiscal year. If not available, you may submit an unaudited statement with an explanation.

• Authorized Agents (Delegates) Locations: Once your license is approved, use the NMLS Uniform Authorized Agent Reporting functionality to submit a list of agents authorized to conduct money transmission business on your behalf.

• Other Trade Name: If applicable, list any names (other than your legal name) that you are using. Applicants who operate under a different name are required to submit documentation stating that the business is authorized to conduct business under this name.

• Resident/Registered Agent: List all entities that will receive service of legal process on the company’s behalf.

• Primary Contact Employees: Enter information regarding your primary company contact and primary consumer complaint contact.

• Non-Primary Contact Employees: Applicants must list a non-primary contact for the areas of accounting, licensing, consumer complaint (public/regulator), legal, and pre-exam contact.

• Approval and Designation: Submit the company’s FinCEN Registration Confirmation Number and filing date.

• Bank Account: Complete the bank account information under this section. Identify bank(s) the applicant will use for money transmission purposes, as well as the bank(s) that will extend credit to the applicant.

• Disclosure Questions: A document and detailed explanation must be provided for each “yes” answer in this section.

• AML/BSA Policy: Submit an Anti-Money Laundering (AML)/Bank Secrecy Act (MSA) Policy. In New York, licensees must have an independent review of their BSA-AML program.

• Business Plan: Provide detailed information on your business plan including the areas of target markets, products, marketing strategies, operating structures, and fee schedule. Note that a Pro Forma Financial Statement is required of all applicants.

• Certificate of Authority/Good Standing: Submit the relevant state-issued and approved document.

• Agent and Correspondent Policies: Provide a written detailed description of the general procedures by which the applicant intends to enter into agency contracts in order to engage in money transmission.

• Document Samples: Submit copies of customer, operating, and agency agreements, as well as samples of receipts, travelers checks, money orders, or other instruments.

• Flow of Funds Structure: Upload a step-by-step description of each type of transaction or services to be conducted.

• Formation Documents: Upload a state-certified copy of the applicable documentation, including all subsequent amendments:

  • Corporation: Articles of incorporation, bylaws, shareholder agreement, IRS Form 2553, corporate resolution

  • Not-for-Profit Corporation: Documents requested of a corporation, proof of not-for-profit status

  • LLCs: Articles of organization, operating agreement, IRS Form 2553 (or 8832), LLC resolution (if not in Operating Agreement)

  • Limited (Liability) Partnership: Certificate of limited (liability) partnership, partnership agreement

  • General Partnership: partnership agreement

  • Sole Proprietor: Documents for sole proprietors are requested by the department ona case-by-case basis.

  • Unincorporated Association: bylaws or constitution

  • Trust (Statutory): Certificate of trust, governing instrument

• Management Chart: Provide a chart that shows all directors, officers, and managers. Individual names and titles must be included. Note that applicants must also indicate all front office business units, as well as back office reporting for compliance, internal audit, and IT infrastructure.

• Organizational Chart Description: Upload a chart/description which includes the ownership percentage of direct/indirect owners, subsidiaries/affiliates of the applicant, and all owners with more than 10% of ownership.

• Permissible Investment Affidavit: Submit an affidavit stating that you comply with Section 651 of the Banking Law.

• Chief Compliance Officer: The Chief Compliance Officer must have at least 3 years of relevant experience and demonstrate current training to directly related topics. The Compliance Officer must be also be listed under the Direct Owner/Executive Officers section.

Note: All individuals listed in the Direct Owner/Executive Officers section are required to complete an Individual form (MU2).

• Individual MU2 Form Requirements:

• Legal Name/Status Documentation: A copy of the passport or driver’s license is required of each individual in a position of control.

• Control Person (MU2) Attestation: Once completed, the MU2 (Individual) form must be attested by the relevant control person.

• Personal Financial Statement: A personal financial statement is required of direct owners with more than 10% ownership, executive officers (including the Chief Compliance Officer), and indirect owners.

• Authority to Release Information: The Authority to Release Information form must be submitted by all control individuals.

• Credit Report: A credit report must be authorized by all control persons, including the Chief Compliance Officer. Before a license request can be filed, individuals must complete an Identity Verification Process (IDV) and an individual attestation.

• Requirements Submitted Outside of NMLS: The following documentation must be mailed directly to the New York Department of Financial Services:

• Restricted Words: The State of New York prohibits the use of certain names without the approval of the Superintendent of Banks. Further information – as well as the list of prohibited names – can be found on the Department’s webpage .

• Branch Locations: If you intend to use branch locations, you will be required to provide the name and phone number of the contact person, as well as the location’s address.

• Fingerprints for Control Individuals: All individuals in control (officer, director, stockholder, and owner of the applicant) must submit fingerprints following the Fingerprinting Instructions provided by DFS.

Information Regarding Control Persons Residing in Foreign Jurisdictions: An investigation background report must be filed if any of the people in control do not currently live in the United States, or have not resided in the country for the past 5 years.

Applicants for a New York Money Transmitter license must provide a surety bond. The bond amount must be at least $500,000 and needs to be issued by an authorized surety company. The bond must be both uploaded in NMLS and mailed directly to the NY Department of Financial Services.

All fees are non-refundable and non-transferable.

• NY Application Fee: $3,000

• Credit Report for Control Persons: $15 per control person

• Uniform Authorized Agent Reporting Annual Processing Fee: $0.25 for each authorized active agent/delegate location. The fee is applicable for companies with 100 agents or more.

Submit your license application – along with the surety bond and all applicable fees – online via NMLS . All agency specific documentation, along with the surety bond, must be mailed directly to the Department of Financial Services.

Mailing Address: New York Department of Financial Services
Licensed Financial Services – Application Unit
One State Street
New York, NY 10004-1511

Should you have questions regarding licensing requirements, contact the Department at (212) 709-5507.

For information or assistance with NMLS, contact the NMLS call center at (855) 665-7123.