Arizona Money Transmitter Licensing Requirements:


Who needs to be licensed as a money transmitter licensee?

Under Arizona statute, the following must obtain a money transmitter license in Arizona, whether they are located or doing business in the state:

• Those issuing payment instruments;
• Transmitting money;
• Engaging in the business of receiving money for the further transmission of money;
• Receiving money for obligors, with the purpose of paying or receiving money for the purpose of paying the obligor’s bills, invoices, or accounts

Those who knowingly transmit money into Arizona or make payments in Arizona without disclosing the identity of each person on whose behalf money was transmitted or payment was made must register for engaging in business transmission activity.

If additional business locations are located under control of a licensee, rather than authorized delegates, a separate “branch license” must be obtained.

Specific license requirements for Arizona money transmitters.

To apply as a money transmitter requires the following fees and documents:

• Copies of articles of incorporation; company information; intended places of transactions within Arizona; list of authorized delegates; statement of history for each executive officer, director, and controlling person. (Note: not required if publicly traded with assets under $400 million)
• ID for each branch manager or person responsible (general information, employment history, residential addresses for preceding 15 years, SSN, and any non-traffic criminal convictions)
• Financial statement and balance sheet audited by an independent accountant
• List of proposed authorized delegates and their locations
• Documents proving a net worth of $100,000 + $50,000 for each additional location or delegate (Note: net worth may not amount to more than $500,000. If amount exceeds $500,000, may not execute less than 10%  of transactions in the state.)
• $1,500 application fee
• Fingerprint cards, $25 each
• $500 renewal fee + $25 for registering each additional branch (amounting no more than $2,500)
• Copy of FinCEN registration
• Copy of operations policies and procedures
• Copy of compliance manual + biographical/consent form of compliance officer
• Copy of risk assessment
• Copy of independent review
• Ownership flowchart + personal financials for 15% owners
• Certificate of good standing
• Foreign authority to do business in Arizona
• List of licenses held, refused, or revoked in other states

What are the Arizona surety bonding requirements?

Bonding requirements for Arizona money transmitter license include:
Requirements vary depending on the number of delegates and locations of money transmitter sites. Cash or cash alternatives may be used in lieu of bond.

• Transmitters with fewer than 5 delegates and locations: $25,000 bond
  
• Transmitters with between 6 – 21 delegates and locations: $100,000 bond
  
• Transmitters with between 21 – 200 delegates and locations: $5,000 extra for every delegate/location, amounting to no more than $250,000
  
• Transmitters with more than 200 delegates ad locations: $5,000 extra for every delegate/location, amounting to no more than $500,000
  

Additional resources: Arizona Revised Statutes, Chapter 12: Transmitters of Money