Pennsylvania Money Transmitter License Overview
Money Transmitter License in Pennsylvania
Whether you’re planning to start your money services business or expand your current money transmission business in Pennsylvania, you will have to apply for a money transmitter license.
According to NMLS, a company is required to acquire this license if they intend to transmit money by means of a transmittal instrument for a fee or other consideration with or on behalf of an individual. A transmittal instrument is defined as any check, draft, money order, personal money order, debit card, stored value card, electronic transfer, or other method for the payment of money or transmittal of credit, other than a merchandise gift certificate or instrument with a similar purpose sold in the regular course of business by a vendor of personal property or services in a closed loop system or hybrid closed loop system.
PA Money Transmitter License Regulator
The state regulator, the Pennsylvania Department of Banking and Securities is responsible for the issuance of a Money Transmitter License.
Details pertaining to the money transmission application process in Pennsylvania, such as the application form, laws, regulations, and other resources can be accessed here.
In an effort to streamline the licensing process, DoBS now uses the NMLS system for money transmitter license applications. All licensed money transmitters are listed in the NMLS Consumer Access Database.
PA Money Transmitter License Application Fees
The licensing application fee is US$ 5,000.
You might also need to hire a dedicated compliance officer through your licensing application process. This might cost you somewhere between US$ 70,000 to US$ 100,000 per year.
PA Money Transmitter Net Worth and Surety Bond
According to DoBS, the minimum required tangible net worth is US$ 500,000, and a surety bond in the amount of $1,000,000 or premiums of $25,000.
Money Transmitter Cost for Pennsylvania
The process will take an average of 5 to 6 months
Applying for a Money Transmitter License in Pennsylvania
- Your business must be registered with FinCEN to qualify for an MTL application in Pennsylvania.
- To understand the requirements needed for this process you will need to visit the websites of the Pennsylvania Department of Banking and Securities and the Nationwide Multistate Licensing System.
- Next, you will have to create an account on the NMLS website since applications can only be submitted electronically on the site.
- Collect all the required documents in preparation for the application process. These could include your business plan, the flow of funds, and financial statements.
- Make your application on the NMLS website and upload all your documents alongside it. Make the requisite fees and wait for five to six months for the application to be approved.
This page was last updated on June 2, 2023.