Minnesota Money Transmitter Licensing Requirements:


Who needs to be licensed as a money transmitter licensee?

Under Minnesota statute, those who sell or issue payment instruments or engage in the business of receiving money for transmission or transmitting money within the U.S. or to locations abroad by any means, including payment instrument, wire, facsimile, or electronic transfer must obtain a money transmitter license.

Specific license requirements for Minnesota money transmitters.

Registering as a money transmitter in the state of Minnesota requires the following fees and documentation:

• $4,150 application fee
• Identification information
• Minimum net worth of $25,000; for businesses with 3 – 6 additional locations, minimum net worth of $50,0000; for business with 7 or more locations, must have minimum net worth of $100,000 + $50,000 per location, not amounting to more than $500,000
• Must show proof of good standing within state of incorporation
• If not incorporated, must show proof of registration to do business within state
• 10 year history of applicant or controlling persons’ history of material litigation, including: 1) whether applicant was a defendant in any lawsuit involving claims of gross negligence, fraud, misrepresentation, mismanagement of funds, conversion, breach of fiduciary duty, breach of conduct, or deceit; 2) whether applicant was ever the subject of inquiry or investigation by the Minnesota Department of Commerce, or censured, suspended, revoked, cancelled or terminated in any state including Minnesota, or by any federal regulatory agency; 3) whether applicant has been found by any civil court to have failed to account to a client or customer for money or property collected on or behalf of the client or customer; 4) whether applicant has been a principal or office of any firm, corporation, partnership, or association which has filed a bankruptcy petition or been declared bankrupt; 5) whether applicant has been charged with, indicted for or convicted of, or entered a plea to any criminal offense (felony, gross misdemeanor or misdemeanor) other than traffic violations, in any state or court; 6) whether applicant has been notified by the Commissioner of Revenue of delinquent taxes which are currently owned to the State of Minnesota
• Description of activities conducted by applicant and history of operations
• Description of activities sought in the state
• List and contact info of proposed authorized delegates in Minnesota
• Sample of authorized delegate contract
• Sample payment instrument
• List of Minnesota locations
• Name, address and account numbers for clearing banks or banks where payment instruments will be drawn or will be payable
• Location of books and records
• Certificate of incorporation and date and state of incorporation
• Description of corporate structure and organization chart
• Documentation of name, business and residence address, and employment history over the past five years of all executive officers, officers or managers in charge of application activities, copy of criminal history verification obtained from local law enforcement or government agency (10 years prior, at most 90 days old) and authorization to release information form

What are the Minnesota surety bonding requirements?

Bonding requirements for Minnesota money transmitter license include:
Requirements vary depending on the number of locations. For three or less locations, businesses must have a $25,000 surety bond. Businesses with four to six locations must have a $50,000 bond, while businesses with seven or more locations must have an additional $50,000 for each location, not amounting to more than $250,000.


Additional resources: Minnesota Money Transmitters Act