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.
This page was last updated on September 21, 2022.