South Dakota Money Transmitter License Overview
Who Regulates the Money Transmitter License in South Dakota?
The regulator that governs the money transmitter license in South Dakota is the South Dakota Division of Banking.
The Nationwide Mortgage Licensing System handles all new license applications, fee submissions, and all other related matters. You can find application instructions and other details on this page which also provides a checklist for new license applicants.
The checklist fully explains the whole application process for money services businesses operating in South Dakota and includes the following:
- General Information
- License Fees
- Requirements that will be completed in NMLS
- Requirements/Documents that will be Uploaded in NMLS
- Requirements that will be submitted outside of NMLS
Who Is Required to Have a License in South Dakota?
According to South Dakota Codified Law, this license is required for entities involved in money transmission. Money transmission is defined as the sale or issuance of payment instruments or stored value or of receiving money or monetary value for transmission to a location within or outside the United States by any means,including wire, facsimile or electronic transfer. A licensee may conduct business in South Dakota at one or more locations, or through one or more authorized delegates, or both, under a single license.
The following activities require a license in South Dakota:
- Bill Paying
- Electronic Money Transmitting
- Issuing and or Selling Drafts
- Issuing Money Orders
- Issuing Prepaid Access/ Stored Value
- Issuing Traveler’s Checks
- Selling Money Orders
- Selling Prepaid Access/ Stored Value
- Selling Traveler’s Checks
- Transporting Currency
- Virtual Currency exchanging and trading service
South Dakota MTL Surety Bond and Net Worth
You will also be required to submit a surety bond in order to qualify for a license in this state. The surety bond should be in the amount of $100,000 or premiums of $2,500. You will also need to have a minimum tangible net worth of $100,000.
South Dakota Money Transmitter License Cost and Time
The whole process takes an estimated three months to complete.
How to Obtain a MTL in South Dakota?
- A key prerequisite of applying for the South Dakota Money Transmitter License is that your money services business will have to be registered with the Financial Crimes Enforcement Network (FINCEN).
- Next, you will need to visit the South Dakota Division of Banking and NMLS websites and read through what is required of you to be eligible for the MTL in SD.
- Create an account with the Nationwide Multistate Licensing System. You will have to upload all the required documents such as financial statements and bank account details alongside your application.
- Pay all the requisite fees and submit your application
- Wait for approximately 3 months for your license application to be approved.
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This page was last updated on July 26, 2023.
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