Connecticut Money Transmitter License Overview
Do I Need a Money Transmitter License in Connecticut?
Money transmission activities are regulated in Connecticut and every money transfer business operating in the state is required by law to obtain a license.
According to Sec. 36a-597 of the Connecticut General Statute, “No person shall engage in the business of money transmission in this state, or advertise or solicit such services, without a main office license issued by the commissioner as provided in sections 36a-595 to 36a-612, inclusive, except as an authorized delegate of a person that has been issued a license by the commissioner and in accordance with section 36a-607.”
As per the Connecticut General Statute, a person/company is engaged in money transfer business if the person/business:
- Has a place of business located in this state,
- receives money or monetary value in this state or from a person located in this state,
- transmits money or monetary value from a location in this state or to a person located in this state,
- issues stored value or payment instruments that are sold in this state, or
- sells stored value or payment instruments in this state.
Thus, all money services businesses in Connecticut are required to obtain a license for their money transfer services.
Who Is the Money Transmitter License Regulator in Connecticut?
All money transmission licensing activities are overlooked and regulated by the Connecticut Department of Banking.
Are There Any Pre-Requisite Requirements for Applying for a Money Transmitter License in Connecticut?
If you are looking to get your money transfer business licensed in Connecticut, you will have to make sure that you meet the following requirements:
- Tangible net worth – Depending on your business activities, the minimum tangible net worth you would need to demonstrate ranges from $100,000 to $1,000,000.
- Surety bond – Depending on the transactional volume, the bond requirement varies between $300,000 to $1,000,000.
- Financial statement – You are required to submit audited financial statements that prove your net worth, and they should not be more than 12 months old.
What Is the Money Transmitter License Cost in Connecticut?
A complete breakdown of costs when applying for a money transmitter license in Connecticut can be found in the PDF below. The PDF below also includes our professional charges for creating a compliance manual, helping you get a bank account, authoring a business plan, setting up a flow of funds structure, transaction set, custody of funds, and much more.
What Documents Are Required to Apply for a Money Transmitter License in Connecticut?
Just like in other states in the US, when applying for a money transmitter license in Connecticut, you will be required to submit a host of documents. While you can find the complete list of documents required for a money transmitter license application here, the following are the major documents required by the regulator:
- Audited financial statements
- Credit report
- Bank account information
- Business Plan
- AML/BSA Policy
- Authorised Delegate locations
- Other trade name (if any)
- Company formation documents
- Certificate of Good standing
- Flow of Funds
- Organizational Chart
- Registered Agents
What Are the Steps to Obtain a Money Transmitter License in Connecticut?
In order to obtain a money transmitter license in Connecticut, you should follow these steps:
- Register your business with FinCEN.
- Create an account with NMLS for application filing
- Read through the Connecticut General Statute and visit the regulator’s website to make sure you do not miss out on anything.
- Gather and submit all required documents along with your application.
- Pay all the associated costs.
- Wait for approval from the Connecticut Department of Banking. The usual wait time is somewhere between 6 to 8 months.
This page was last updated on September 21, 2022.