To be an Agent (also known as an Authorized Delegate) of a Principal License Holder (PLH), i.e., the entity holding the necessary money transmitter licenses, please be aware of what is and is not allowed under the Agent program. While the actual nuances would only be made clear once a sponsoring PLH is assigned to you, the broader understanding can be gauged from the US Money Transmitter License Summary table: https://fkpost.com/USMTLSummary
Our professional referral fee for brokering such an arrangement, whether it is a one-state Agent relationship, a few states, or nationwide, is as follows:
- A one-time application fee (non-refundable) of US$ 3,500
- One-time professional referral fee of US$ 18,000 (success-based approach). US$ 8,000 when you sign the referral agreement and US$ 10,000 when you sign up with the solution provider.
If you sign up with the solution provider, the referral fees are due to us. The referral fee is fully refunded if you don’t sign up with a solution provider. The one-time application fee is non-refundable.
The solution provider that has the necessary licenses would typically be looking at the following term sheet arrangement (please remember these are proposed and multistate fees):
- One-time Fees: US$ 18,000 (for the Principal License Holder) [not counting any legal opinion that may be required and you would have to pay for, and does not include any increase in surety bonding price]
- Monthly Program Cost of being sponsored as an Agent: Between US$ 1,500 to US$ 7,500 (regardless of the number and value of transactions). The mean average is US$ 2,500
- Per Transaction Cost: $0.50 + 0.45% of the value processed [proposed]
- Online Only. There are no physical locations. Physical locations cost extra and vary from state to state.
- Minimum guaranteed monthly income [proposed]: US$ 7,500 (to the Principal License Holder) – in addition to the monthly sponsorship charge. You can always negotiate this; sometimes, you might get a complete waiver or a two to three months ramp-up period. Remember, by being an authorized delegate, you get money transmitter license coverage, whilst the PLH gets a minimum income from your business.
- We’d like to point out that SWIFT charges according to actuals.
Document requirement for becoming an Authorized Agent / Delegate in the United States for an MSB:
https://faisalkhan.com/solutions/licensing/money-transmitter-license-mtl/authorized-agent-required-documentation/
(this is in addition to the due diligence).
Banking, licensing, compliance, and processing services are included in this. To become an Agent, you must have a compliance officer and a compliance program.
Offer from Solution Provider is suitable for 7/Seven Calendar Days from today and is mandated if Due Diligence, etc., is completed in 21 days for closure and signing of the contract. This means you get started right away after signing.
Please let us know if you want to proceed, and we will prepare a commercial referral agreement. If you have any questions or comments, please do not hesitate to reach out. Happy to help.
I am looking forward to hearing from you.
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This page was last updated on October 12, 2023.
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