The Full Maryland Money Transmitter License Guide [2020]

Published: Apr 27, 2020
maryland money transmitter license

 

If you want to start a money transmission business in Maryland, you have to undergo an administrative procedure with state authorities. You need to obtain a Maryland money transmitter license, so that you can launch your operations. 

The licensing authority is the Maryland Department of Labor. It determines the criteria that money transmission applicants. The process is handled via the website of the Nationwide Multistate Licensing System and Registry (NMLS).

In the guide below, you can find the essential steps that you need to take, so that you can start your money transmission company in the state. 

Meet the Maryland Money Transmitter License Requirements

The Department of Labor has established the requirements that money transmitters have to satisfy. The legal framework for such professionals is set in the Maryland Money Transmission Act

Business Documents 

In order to launch a business in Maryland, you have to register your business entity in the state. You can do so via the Maryland Business Express portal. The formation documents have to be submitted with your application. 

You also have to provide the following: 

  • Trade name (if applicable) 
  • Business plan
  • Organizational chart
  • Management chart
  • Resident/Registered Agent information
  • Disclosure questions
  • Qualifying individual information and resume 
  • Certificate of Authority/Good Standing Certificate
  • FinCEN registration confirmation number
  • Your Anti-Money Laundering (AML) / Bank Secrecy Act (BSA) / The Office of Foreign Asset Control (OFAC) policies
  • Policies and procedures documents
  • Trust account authorization

You can examine the full list of requirements on the NMLS website. The same licensing process under the Maryland Money Transmission Act applies to money transmitters who want to work with virtual currencies. 

Provide a Surety Bond 

All applicants have to obtain a surety bond. It serves as an extra layer of protection for your customers. The bond guarantees you will follow the law in your operations as a money transmitter.

The required Maryland money transmitter bond amount is $150,000. 

The bonding process entails that you cover a small fraction of this amount. It is referred to as the premium. The factors that determine it include your personal credit score, business finances, and fixed and liquid assets. The rates that you can expect if your finances are stable are between 0.5% and 5%.

Want to check the exact cost of your Maryland money transmitter bond? Fill in the short form below! 

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Criminal Background Check

Direct and indirect owners, qualifying individuals, and executive officers have to undergo an FBI criminal background check

Credit Report and Financial Statements

You have to authorize a credit report for all individuals in a position of control in your company. The business credit report is also required. 

You also need to provide an unconsolidated audited financial statement prepared by a Certified Public Accountant. It should contain a Balance Sheet, Income Statement and Statement of Cash Flows. The statement should showcase that you meet the requirement for a net worth of at least $150,000, plus an additional net worth of $10,000 for each additional location or authorized delegate, up to a maximum of $500,000. 

Complete the Maryland Money Transmitter License Application

maryland money transmitter licenseOnce you’ve gathered all the paperwork, you should submit your full application package online via the NMLS website. 

Within 5 business days of the electronic submission of your application through the NMLS, you have to send a part of the documents to the Department. You have to use its mailing address:

Maryland Commissioner of Financial Regulation 

Attn: Licensing Unit 

500 N Calvert Street, Suite 402 

Baltimore, Maryland 21202

License and Registration Fees

The fees that you have to cover for your licensing are as follows:

  • $2,000 initial license fee
  • $1,000 investigation fee
  • $100 NMLS processing fee 

In addition, the credit report fee is $15 per person, while the FBI criminal background check fee is $36.25 per person.

 

Do you need more details about obtaining your Maryland money transmitter license and bonding? 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.