Tennessee Money Transmitter License Overview
Who Needs a Money Transmitter License in Tennessee?
Any entity that engages in the business of money transmission and provides such services to Tennessee residents, unless certain exemptions apply, must be licensed pursuant to the Tennessee Money Transmitter Act(“TMTA”). The TMTA defines “money transmission” in Tennessee Code Annotated (“TCA”) Section 45-7-203(10) as follows:
“The sale or issuance of payment instruments or engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means, including, but not limited to, payment instrument, wire, facsimile or electronic transfer.”
Who Is the Financial Regulator?
The financial regulator in the state of Tennessee is the Tennessee Department of Financial Institutions.
Activities Authorized by the Tennessee MTL
This license authorizes the following activities…
- Electronic money transmitting;
- Issuing traveler’s checks;
- Selling traveler’s checks;
- Issuing money orders;
- Bill paying;
- Issuing and/or selling drafts;
- Transporting Currency;
- Issuing prepaid access/stored value;
- Selling prepaid access/stored value;
- Foreign currency dealing or exchanging; and,
- Other – money services
What Is the Minimum Net Worth for TN Money Transmitter License?
If you’re seeking a Tennessee money transmitter license, the minimum required net worth is US$ 100,000.
TN Money Transmitter License Surety Bonding
For Tennessee money transmitter license application, surety bonding of US$ 50,000 or premiums of $1,250 is required.
Tennessee Money Transmitter License Costs and Estimated Time
The whole process will take approximately five to six months.
How Can You Apply for a Money Transmitter License in Tennessee?
To apply for a money transmitter license in Tennessee, you have to go through the following steps:
- Register your business with the Financial Crimes Enforcement Network. Your MSB needs to be registered with FINCEN to be eligible to apply for the Money Transmitter License.
- Next, start your application with the NMLS licensing system. You will need to create an account on the Nationwide Multistate Licensing System and read through the requirements for the license.
- Collect all the required documents such as flow of funds documents and your business plan and upload them alongside your application on NMLS.
- Pay the requisite fees and wait for around five to six months for approval.
This page was last updated on August 29, 2022.