Indiana Money Transmitter License: Full Guide [2020]

Published: Jun 2, 2020
indiana money transmitter

 

Money transmitters in Indiana need to undergo an administrative procedure before launching operations in the state. If you wish to start such a business, you have to obtain an Indiana money transmitter license. 

In order to get licensed, you have to meet the requirements set by the state Department of Financial Institutions. These criteria ensure that you are a suitable candidate to conduct money transmission services. The actual process is handled through the Nationwide Multistate Licensing System and Registry (NMLS).

You can find out the exact steps you have to take for your licensing in the sections below.

Meet the Indiana Money Transmitter License Requirements

The Department of Financial Institutions regulates the financial industry in the state. It determines the criteria that money transmission businesses need to fulfill in accordance with the Indiana Code, Title 28, Article 8, Chapter 4. The requirements are explained below. 

Business Documents 

Before you can apply for an Indiana money transmitter license, you have to register your business entity in the state. You can file your registration via the InBiz portal. The formation documents need to go along with your license application.

There is a list of other documents that you have to provide. It includes the following:

  • Trade name (if applicable) 
  • Business plan
  • Organizational chart
  • Management chart
  • Resident/Registered Agent information
  • Primary employees information
  • Qualifying individual information
  • Control person attestation
  • Disclosure questions
  • Certificate of Authority/Good Standing Certificate
  • FinCEN registration confirmation number
  • Your Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) policies
  • Authorized agents location
  • Company owned locations and branches
  • Document samples
  • Company staffing and internal policies
  • Flow of funds structure
  • Verification of experience 
  • $300,000 errors and omissions insurance policy 

You can review the details about the requirements in the NMLS application checklist.

Provide a Surety Bond 

All applicants for a license have to obtain an Indiana money transmitter bond. It serves as a protection mechanism that guards the interests of your customers. The bond guarantees your legal compliance. 

The bond amount that you have to provide is $300,000. You need to complete the official bond form, but the submission is online via the NMLS. 

The bonding process entails that you cover a small fraction of the required amount. This is your premium. Factors such as your personal credit score and business finances shape the exact cost that you have to pay. If your financial profile is stable, the rates you can get are between 0.5% and 5%.

Want to check the exact price of your Indiana money transmitter bond? Complete the short form below! 

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Criminal Background Check

Persons in position of control have to authorize an FBI criminal background check. This applies to direct and indirect owners, executive officers and qualifying individuals. 

Financial Statements

You have to showcase your audited financial statement prepared by a third party Certified Public Accountant. It should contain a balance sheet, income statement, and statement of cash flows. Your financial statement should illustrate that you meet the net worth requirement of $600,000

Complete the Indiana Money Transmitter License Application

indiana money transmitterOnce you’ve compiled all the necessary paperwork, you can apply online via the NMLS website. 

Some documents have to be sent to the Department. You have to use the following address:

Indiana Department of Financial Institutions 

Consumer Credit Division 

30 South Meridian, Suite 300 

Indianapolis, IN 46204

License and Registration Fees

The applicable fees that you have to cover include:

  • $1,000 application fee
  • $36.25 FBI criminal background check fee per person

 

Do you have more questions about the Indiana money transmitter license and bonding process? You can reach us at 877.514.5146

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Robin Kix

Robin Kix

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation and construction industries. Robin and her team work together to create a positive customer service experience at the time of every policy renewal, whether that be finding the best pricing or offering additional assistance.