The Alabama Money Transmitter License guide (Faisal Khan LLC, July 2026) covers licensing under the Alabama Monetary Transmission Act, Ala. Code §§ 8-7A-1 to -27, issued by the Alabama Securities Commission.
The standout number is net worth: Alabama requires just $25,000 on a GAAP basis, with intangibles counted — the lowest net worth requirement in the country, and a gap that has widened rather than narrowed as other states adopt the Money Transmission Modernization Act's $100,000 tangible net worth floor. Alabama also waives items most states require: no FBI criminal background check, no credit report authorisation, and no fingerprinting through NMLS for owners, officers or qualifying individuals. Start-ups get a further concession — only an attested financial statement is required, not an audited one.
What the guide covers:
- Fees: $0 application fee, a $1,000 licence registration fee, and a $120 NMLS processing fee — $1,120 all-in
- Bond: a $100,000 minimum or the statutory formula if greater, with the Commission able to raise it to $5,000,000
- Crypto: covered explicitly from day one under the "monetary value" definition in § 8-7A-2(8), with no separate licence
- Filing traps: the Statement of Prior Money Transmission Activity and five Company References are emailed directly to the ASC, not filed through NMLS
- Renewal: due 15 March, expiring 31 March, with a 20-day cure window at $100 per day before liability for unlicensed transmission attaches
- SAR threshold: the federal MSB figure of $2,000, not $5,000, with quarterly UAAR agent reporting required even with no changes