Money Transmission

Money Transmitters

The Minnesota Department of Commerce licenses and regulates individuals and businesses that cash checks, transmit money, own and operate ATMs, and provide electronic funds transfers.

Checklist

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 Statute §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
• banks
• credit unions
• savings associations
• bank holding companies

Requirements

View the Minnesota Money Transmitter License Description (.pdf) to see the prerequisites at a glance and application requirements.  

• $4,000 initial license application fee. The fee is nonrefundable.

2017: Enforcement Guidance regarding Minnesota Statutes§ 53B.27, subdivision 3 Money Transmitters "No Transmit" List (.pdf)

2016: Enforcement Guidance regarding Minnesota Statutes§ 53B.27, subdivision 3 Money Transmitters "No Transmit" List (.pdf)

Currency Exchange & Check Cashers

A Currency Exchange, or check cashing company, can provide check-cashing services for a fee at a location that is not associated with a financial institution. The law governing these companies are found in Minnesota Statute §53A and Minnesota Administrative Rule 2872.0100. Licensing is required in Minnesota.

Requirements

• $1,500 initial application fee
• Provide a current fee schedule
• Provide a complete list of owners, partners, officers, directors, stockholders (owning 10 percent or more of corporate stock), or any employee with authority to exercise management or policy control over the company. In addition, provide a 10-year work history and BCA background checks for each person listed.
• Provide a $10,000 surety bond
• Articles of incorporation, partnership agreement, and/or certificate of assumed name (if applicable) must be provided
• Provide evidence of current workers' compensation insurance.
• Applications filed with this department will be sent for approval to the local governing body where the company is to be located.

Renewal

Licenses issued under Minnesota Statute §53A expire annually on December 31. Renewal notices will be mailed to the address on record in August. The renewal will be due on September 1.

• $500 renewal fee

Changes to the License

• Subdivision 1 -Name or location: If a licensee proposes to change the name or location of any or all of its currency exchanges, the licensee shall file an application for approval of the change with the commissioner. The commissioner shall not approve a change of location if the requirements of Minnesota Statute §53a.02, and §53a.04 have not been satisfied. If the change is approved by the commissioner, the commissioner shall issue an amended license in the licensee's new name or location. A $100 fee must be paid for the amended license.
• Subdivision 2 - Ownership: The licensee shall notify the commissioner 30 business days in advance of any change in ownership of the currency exchange. The commissioner may revoke the currency exchange license if the new ownership would have resulted in a denial of the initial license under the provisions of Minnesota Statute §53a.

EFT

Automated Teller Machines (electronic financial terminals) that are owned by an individual and are not associated with a state or federally chartered institution must apply for an authorization. See Minnesota Statute §47.61 and Minnesota Rules Part 2675.8100 to 8190. The application includes a $100 one-time fee.Specific information and documentation required by law or rule include:

• Location and description of the machine, its technical operating standards and systems employed to safeguard the customers' account information and prevent unauthorized use.
• Types of transactions to be available which are normally limited by the agreements to cash withdrawal and balance inquiry.
• Who has control over the equipment, including servicing agreements.
• Evidence of financial soundness and responsibility of the person controlling the machine. This can take the form of:
  • A Bond for Ownership of Electronic Financial Terminal in the amount of $5,000 per ATM; or
  • A certificate of deposit in the amount of $5,000 per ATM which may be pledged or assigned to the Commissioner of Commerce; or
  • A current business financial statement for the owner of the ATM.

Registration Requirements

• The steps to apply for electronic financial terminals (aka ATMs) are outlined on the NMLS website.