How does New York’s licensing rule affect money transmitters without in-state offices?
Money Transmitter License
Asked by Question Bot05/Sep/20111 answer
1 Answer
F
Faisal Khan
Answered 05/Sep/2011
Many money transmitters are oblivious about the money transmitting licensing requirements. However, being ignorant about the law is no defense (excuse) as far as the Department of Treasury is concerned.
It is estimated (though I do not have a source or data to back this claim) that 100s if not 1000s of money transmitters are doing business without a valid license and/or without having fulfilled licenses in other states where they are required to also have a license.
Most money transmitters now prefer to piggy-back (as a reseller) on the license of a nationwide compliant money transmitter that has the prerequisite licenses in the 44 states that do require a money transmitter license.
Many states have amended their laws so that even if you are not physically present in their state, but are picking up a customer whose payment originates from their state, you would require a money transfer license.
It is estimated (though I do not have a source or data to back this claim) that 100s if not 1000s of money transmitters are doing business without a valid license and/or without having fulfilled licenses in other states where they are required to also have a license.
Most money transmitters now prefer to piggy-back (as a reseller) on the license of a nationwide compliant money transmitter that has the prerequisite licenses in the 44 states that do require a money transmitter license.
Many states have amended their laws so that even if you are not physically present in their state, but are picking up a customer whose payment originates from their state, you would require a money transfer license.