Alabama Money Transmitter License Overview

Who regulates money transmitter licenses in Alabama?

According to the Alabama Monetary Transmission Act, money transmitters operating in Alabama are required to obtain a money transmitter license with the Alabama Securities Commission.

Who needs a money transmitter license in Alabama?

In Alabama, if you are engaged in any of the following business activities, you are required by law to be licensed as a money transmitter.

• Debt Management/Credit Counseling
• Electronic money transmitting
• Issuing traveler’s checks
• Selling Traveler’s checks
• Issuing money orders
• Selling money orders
• Bill payment
• Issuing and/or selling drafts
• Transporting currency
• Issuing prepaid access/stored value
• Selling prepaid access/stored value
• Foreign currency dealing or exchanging
• Virtual currency exchanging and trading services

Alabama Money Transmitter License: Documents Required

In order to apply for a license in Alabama, you will need to submit the following documents along with your application in NMLS:

• Audited Financial Statements
• Location of Authorized Delegates (if applicable)
• Other trade names (if operating under a different name)
• Registered Agent
• Primary contact employees
• Bank account information
• Credit Report
• Business Plan
• Certificate of Authority/Good Standing Certificate
• Company Staffing & Internal Policies
• Sample contracts for consultants, or any third-party providers, and sample contracts of authorized agents, money transmission contracts.
• Flow of Funds
• Company formation documents
• Organizational Chart
• Surety Bond
• Verification of Experience

There are a host of other documents that you might be required to submit, depending on your case. You can find them here.

Alabama Money Transmitter License Cost

In order to apply for a money transmitter license in Alabama, you need to pay all government-related fees which includes an application fee of $1,000, $10,000 in surety bonds, and a lot more. A breakdown of the state licensing charges along with our professional service charges can be purchased here:

How to Apply for a Money Transmitter License in Alabama?

• First, and foremost, you will have to register your business with FinCEN.
• Then, visit the Alabama Securities Commission and NMLS website, and read through the requirements.
• Next, you will have to upload all the required documents, which include (but are not limited to) the following:
  • Company Form
  • Financial Statements
  • Report authorized agents (if any)
  • Other trade name, if you are using any
  • List the registered agent
  • Provide contact of primary employees
  • Provide FinCEN registration details
  • Provide bank account details
  • Submit a business plan and flow of funds
• Pay all the fees mentioned in the cost table above.
• Prepare a compliance and risk management program as part of your application requirement.
• Submit your application
• Wait for up to 12 months to receive your license.

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This page was last updated on May 30, 2023.

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