Money Transmitter License Massachusetts MA - Faisal Khan and Company

Money Transmitter License Massachusetts

Massachusetts Money Transmitter License – Introduction and Step by Step Guide

Getting a money transmitter license in Massachusetts, much like the rest of the states, involves a whole lot of hard work, investment, and meticulous planning. The whole process can take anywhere between one month to 6 months if you want to be approved on your first try.

And that is just the pre-application process.

Let’s take a look at what is involved in the whole process of applying for an MA money transmitter license.

Who is the State Regulator for Massachusetts?

The Consumer Affairs & Business Regulation: Division of Banks is responsible for the supervision and management of all licensees and related matters in the industry.

Who Processes New MTL Applications in Massachusetts?

The Nationwide Multistate Licensing System & Registry (NMLS) manages all license applications through its online portal.

Who Needs a Money Transmitter License in MA?

Similar to other state definitions, Massachusetts also classifies anyone who receives or transmits money to or from an MA resident as a money transmitter. If you or your business is selling or issuing checks and/or money orders, you are required to get a license.

Massachusetts Division of Banks Licensee List

The MA DoB provides a complete list of all businesses licensed to operate in the state. This list can be downloaded here.

Massachusetts Money Transmitter License Checklist and Other Resources

Some important resources for information about the MTL in Mass. are:

Step by Step Guide to Getting a Massachusetts Money Transmitter License

How to Get a Money Transmitter License in MA

  1. Register with NMLS

    All MA money transmitter applications are processed online and you will have to create an account for your business before you proceed. Simply go to the website and follow instructions.

  2. Follow the checklist

    Use the checklist to gather and complete all the necessary documents that are required for the application.

  3. Complete MU1 form and other documents

    Download and complete the Company Form
    (MU1). You can find filing instructions here.

  4. Money transmitter license fee for MA

    1. License fee: $1,000 per license
    2. Investigation fee: $300 per license
    3. Credit report fee: $15 per control person(s)
    4. FBI criminal background check: $36.25 per owner(s) or control person(s)

  5. Surety bond for Mass. MTL application

    A surety bond of $50,000 will need to be submitted electronically with your application. Keep in mind, this is only the bond for the initial license. After approval, you will need to submit an amount equal to twice the average weekly funds deposited with the licensee by Massachusetts consumers for remittance to foreign countries.

  6. Submit your application

    Make sure everything is complete before you hit submit. If your application is rejected because you forgot to attach an important document, you will have to go through the whole process again which includes the fees.

  7. Wait to be approved

    You could get your approval for a money transmitter license in 4 months if you are lucky. The usual wait time is six to eight months.

The whole process for applying for a license can be quite daunting and complicated especially if you are a new business. Perhaps the most prohibitive part of licensing is the expense – it is simply money that a fledgling business cannot afford. This is why many new businesses choose to go the route of quietly offering services without getting a license.

Remember, this is illegal and you should NEVER operate without a license. We have a simpler, more realistic and legal way to help you get money transmitter license coverage for Massachusetts.

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