The Complete Ohio Money Transmitter License Guide [2020]

Published: Apr 10, 2020
ohio money transmitter license

 

Do you want to launch a money transmitting business in Ohio? Your first step is to obtain an Ohio money transmitter license, which allows you to operate legally in the state. 

The licensing process is rigorous and is set by the Ohio Division of Financial Institutions. It is the authority that oversees the operations of money transmitters in the state. However, you have to complete the actual procedure via the Nationwide Multistate Licensing System and Registry (NMLS). 

In the sections below, you can find out the essential steps that you need to take to obtain your licensing. 

Meet the Ohio Money Transmitter License Requirements

The Division of Financial Institutions determines the criteria that you have to satisfy, so that you’re granted an Ohio money transmitter license. The full list of requirements is available in the NMLS application checklist.

Business Documents 

Your first step is to register your business entity with the Ohio Secretary of State. You have to provide the formation documents together with your application.

The rest of the documents that you need to include are:

  • Trade name (if applicable) 
  • Business plan
  • Organizational chart
  • Management chart
  • Resident/Registered Agent information
  • Primary contact employees information
  • Non-primary contact employees information
  • Disclosure questions
  • Control Person (MU2) attestation 
  • Certificate of Authority/Good Standing Certificate
  • FinCEN registration confirmation number
  • Your Anti-Money Laundering (AML) / Bank Secrecy Act (BSA) policy
  • Company staffing and internal policies
  • Flow of funds structure
  • Verification of experience of your compliance officer 

If you’re planning to work with virtual currency, you have to submit a third-party security audit of all relevant computer and information systems. 

Provide a Surety Bond 

Money transmitters in Ohio have to post a surety bond as a part of the licensing process. The Ohio money transmitter bond ensures your legal compliance and thus protects the interests of your customers. More specifically, it guarantees you will follow Chapter 1315 of the Ohio Revised Code.  

The bond amount is set at $300,000 for all applicants. You need to supply it in the official bond form.

You have to cover a small fraction of the required amount in order to get bonded. The exact price depends on the strength of your personal and business finances. The main factors that affect the bond cost include your personal credit score, company finances, and any fixed and liquid assets you have. If they are in good shape, you can expect rates between 0.5% and 5%.

Want to see the exact cost of your Ohio money transmitter bond? Complete the short form below! 

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Criminal Background Check

The FBI criminal background check is obligatory for all applicants. Direct and indirect owners, as well as executive officers, have to also undergo state background checks from the Ohio Attorney General’s Bureau of Criminal Investigation (BCI) as well. 

Financial Statements

You need to provide your audited financial statement. It has to illustrate a company net worth of $500,000. In addition, you have to offer a capital plan on how you will keep the minimum net worth in the next 2 years.

Complete the Ohio Money Transmitter License Application

ohio money transmitter licenseYou have to submit your complete application package online via the NMLS website. 

Some of the documents have to be sent to the Division. For them, use this mailing address:

Ohio Division of Financial Institutions 

Money Transmitters 

77 South High Street 21st Floor 

Columbus, OH 43215

License and Registration Fees

The application fee that you have to cover is $5,000, plus $30 NMLS processing fee. 

The FBI criminal background check fee costs $36.25 per person. 

 

Do you have more questions about obtaining your Ohio money transmitter license and bonding? You can reach us at 877.514.5146.

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John Williams

John Williams

John Williams is currently the Director of Sales for Lance Surety. Since joining the company in 2011, he has served in various roles throughout the organization, working his way up to now managing our team of licensed agents. As a licensed property & casualty agent, John has become extremely knowledgeable in all facets of the surety industry, including commercial, court and contract bonds. Under his leadership, John’s team has helped thousands of businesses throughout the country meet their license and bonding requirements.