Your Complete New Jersey Money Transmitter License Guide [2020]

Published: Apr 27, 2020
new jersey money transmitter license

 

Money transmitters in New Jersey have to undergo a licensing procedure before they can start their business in the state. You have to obtain a New Jersey money transmitter license as a first step. This ensures your suitability to conduct such professional activities. 

In order to get licensed, you have to satisfy a range of requirements. They are set by the New Jersey Department of Banking and Insurance. It is the licensing authority that oversees the activities of money transmitters in the state. 

In the sections below, you can get acquainted with the licensing procedure, so that you can launch your money transmission business with ease.  

Meet the New Jersey Money Transmitter License Requirements

The operations of money transmitters in the state are regulated by the New Jersey Money Transmitter Act. The Department provides two types of licenses – a regular money transmitter license and a license for receiving and transmitting money outside the U.S., which is referred to as a foreign money transmitter license.  

The requirements that you have to satisfy in both cases are detailed below.  

Business Documents 

Corporations, LLCs, and LLPs have to register their business entity with the New Jersey Department of Treasury. Sole proprietors and general partnerships have to register their trade names with their county’s office. 

The starting point for your registration is the NJ Business Portal. Whichever case is applicable for you, you need to present the formation documents with your application.

The other documents that you have to provide are:

  • Trade name (if applicable)
  • Tax registration with the Department of Revenue 
  • Personal Certification Form for all officers, directors, key shareholders , members, partners, and owners
  • LiveScan fingerprinting for each executive officer, partner, owner and each officer or manager
  • Corporate structure description
  • Business activities description
  • Letters from each clearing bank that your payment instruments will be drawn and/or through which those payments will be payable
  • Sample written authorized delegate agreement
  • Sample payment instrument
  • List of all proposed authorized delegates contracted by you in New Jersey
  • List of the foreign countries to which money is to be transmitted (foreign transmitters) 
  • Copies of all filings made to the Securities and Exchange Commission or with a similar regulator in another country

Provide a Surety Bond 

Applicants have to obtain a surety bond as a part of the licensing. It is an indispensable requirement that guarantees your legal compliance. The bond ensures that your customers are protected in case you transgress from the law. You need to provide it in the official bond form.

The required amounts of the New Jersey money transmitter bond are as follows:

  • $100,000 for a money transmitter license
  • $25,000 for a foreign money transmitter license 

The bonding costs that you have to pay are a fraction of these amounts. They depend on the strength of your finances. The factors that influence your bond price include your credit score, company finances, and fixed and liquid assets. In case these indicators are in good shape, the rates that you can get are between 0.5% and 5%.

Want to see the precise cost of your New Jersey money transmitter bond? Complete the short form below! 

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Financial Statements

You have to provide your unqualified, audited financial statement for the most recent year, as well as for the previous two years, if available. It has to be prepared by a Certified Public Accountant or Public Accountant in good standing. 

The statement should showcase that you meet the minimum net worth requirement. It is $100,000 for a money transmitter, plus an additional $25,000 per agent up to a maximum of $1,000,000. For foreign money transmitters, it is $50,000, plus an additional net worth of $10,000 per location or agent in the state up to a maximum of $400,000. 

Complete the New Jersey Money Transmitter License Application

new jersey money transmitter licenseOnce you’ve ensured you meet all requirements, you have to complete the application form

You have to mail your documents to:

Licensing Services Bureau 

N.J. Dept. of Banking & Insurance 

PO Box 473 

Trenton, NJ 08625

License and Registration Fees

The licensing fee for all types of money transmitters is $700. You have to pay it with a company check or money order payable to the New Jersey Treasurer. 

 

Want to know more about the intricacies of obtaining a New Jersey money transmitter license and bond? You can consult our bonding experts by calling 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.