Persons engaged in the business of money transmission must obtain a license from the Department of Commerce. A licensee may conduct business in Minnesota at one or more locations, or through one or more authorized delegates, or both, under a single license.
Minnesota Statutes, Chapter 53B exempts certain entities from the licensing requirements including, but not limited to:
authorized delegates of a licensee who have a contract with a licensee
the U.S. government
the U.S. Postal Service
the state or any political subdivision
bank holding companies
Net Worth Qualifications - Each licensee engaging in money transmission in three or fewer locations in the state, either directly or through authorized delegates, must have a net worth of at least $25,000. Each licensee engaging in money transmission at more than three locations in the state, but fewer than seven locations, either directly or through authorized delegates, must have a net worth of at least $50,000. Each licensee engaging in money transmission at more than six locations in the state, either directly or through authorized delegates, shall have a net worth of $100,000 and an additional net worth of $50,000 for each location or authorized delegate located in the state in excess of seven, to a maximum of $500,000. Net worth shall be calculated in accordance with generally accepted accounting principles.
Good Standing - Every corporate applicant must be in good standing in the state of its incorporation. All noncorporate applicants shall be registered or qualified to do business in Minnesota.
Surety Bond - Each licensee must provide a surety bond, irrevocable letter of credit, or other similar security device acceptable to the commissioner in the amount of $25,000. If the licensee operates at more than three locations, but less than seven locations, through authorized delegates or otherwise, then the amount of the security device must be increased to $50,000. If the licensee operates at more than six locations, through authorized delegates or otherwise, then the amount of the security device must be increased by $50,000 for each location over six, up to a maximum of $250,000.
Statutory Trust - Each licensee must at all times possess permissible investments having an aggregate market value of not less than the aggregate face amount of all outstanding payment instruments sold by the licensee or reported as sold by an authorized delegate, to the extent the dollar volume exceeds the surety bond.
Licenses issued under Chapter 53B expire annually on December 31.
Renewal notices will be sent to licensees at the address on record in September of each year and will be due by December 1 of each year. Please contact 651-539-1707 if you do not receive the renewal notice by November 1.
$2,500 renewal fee.
An annual renewal report will be provided. The annual report will request the following:
A copy of the most recent audited consolidated annual financial statement, including balance sheets, statement of income or loss, statement of changes in shareholder's equity, and statement of changes in financial position.
The number of payment instruments sold in Minnesota, the dollar amount of those instruments, and the dollar amount of those instruments currently outstanding for the most recent quarter or September 30 of the current year.
A list of permissible investments.
A list of all locations in Minnesota at which licensed business is being conducted by either the licensee or its authorized delegate.
Any material changes to the original application that have not been reported. Items to be reported include:
Filing bankruptcy or reorganization
Any revocation or suspension against the licensee by any state or governmental authority
Any felony indictment or felony conviction of the licensee or any key officers or directors related to money transmission activities
Any changes in control or controlling person
Notification of authorized delegate(s) contract termination
Name Change - Submit a letter explaining the name change to the Commerce Department, list the current name and the proposed name, include the license number, and attach legal documentation showing the name change (such as a marriage certificate or court document, or Certificate of Authority or Certificate of Assumed Name filed with the Minnesota Secretary of State).
Address Change - Complete the Address Change form and mail completed form to the Commerce Department, or fax the form to 651-539-1548.
Questions about the license requirements should be directed to 651-539-1721.