Virginia Bureau of Financial Institutions

Overview

The Bureau of Financial Institutions (BFI) is a regulatory division of the Virginia State Corporation Commission (SCC) that oversees the licensing, supervision, and enforcement of depository and non-depository financial institutions operating within Virginia. The BFI plays a critical role in consumer protection through the administration of state laws governing financial service providers, including money transmitters, money order sellers, check cashers, consumer finance companies, mortgage lenders and brokers, and various fintech-related entities.

Virginia's Bureau of Financial Institutions maintains oversight of approximately 150 licensed money transmitters that reported $2.9 billion in money order sales and $59.6 billion in money transmission volume (2024 reporting period).

The BFI operates through two primary supervisory sections:

• Depository Supervision Section: Regulates and supervises Virginia-chartered banks, bank holding companies, credit unions, savings and loan associations, savings banks, and trust companies.
• Non-Depository Supervision Section: Oversees non-depository institutions including money transmitters, money order sellers, mortgage lenders and brokers, consumer finance companies, check cashers, student loan servicers, and debt settlement services providers.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Supervisory Structure

The Bureau of Financial Institutions conducts both on-site and off-site examinations of money transmitter licensees to assess compliance with Virginia law, consumer protection standards, and operational soundness.

Examination Components

1. Compliance Review: Verification of adherence to Virginia Money Transmitter Act requirements, disclosure rules, and consumer protection provisions
2. Financial Review: Assessment of net worth maintenance, capital adequacy, and financial condition
3. Operational Review: Examination of business practices, authorized delegate oversight, and internal controls
4. Consumer Protection Assessment: Review of disclosures, complaint handling, and customer protection measures
5. Cybersecurity and Fraud Prevention [UNVERIFIED - Scope of IT security reviews under modernized framework]

Examination Frequency

[UNVERIFIED - Specific examination cycles and risk-based supervision frequency under Chapter 19.1 framework]

Reporting Requirements

• Licensees must maintain records of all money transmission transactions
• Regular financial reporting to the Commission
• Notice of material changes in business operations, ownership, or financial condition
• Suspicious activity reporting (in coordination with federal authorities and the FinCEN)
• Customer complaint response and documentation

Disclosure Requirements

As of July 1, 2026 (effective date of H.B. 1942), money transmitter licensees and their authorized delegates must include the following on transaction receipts or disclose on the licensee's website and mobile applications:

• The licensee's name
• The licensee's NMLS Unique Identifier Number
• The licensee's business address
• The licensee's customer service telephone number
• The phone number and website of the Virginia State Corporation Commission
• A clear statement that customers may contact the Commission with complaints regarding money transmission services

Receipt Requirements

Every receipt provided to a customer for a money transmission transaction must include:

• Licensee name and NMLS ID
• Licensee business address
• Customer service phone number
• SCC contact information for complaints

Prohibited Practices

Money transmitters are prohibited from engaging in deceptive, unfair, or fraudulent practices under the Virginia Consumer Protection Act (Va. Code Ann. § 59.1-200 et seq.). Violations are subject to enforcement by the SCC and potentially by the Virginia Attorney General.

Complaint Process

Consumers may file complaints with the Virginia State Corporation Commission regarding money transmitter services. The Commission investigates consumer complaints, conducts examinations, and takes enforcement action against licensees engaging in unlawful practices.

Contact Information for Consumer Complaints:

• Bureau of Financial Institutions
• Phone: 804-371-9657 or 1-800-552-7945
• Email: [email protected]

Consumer Fund Protection

[UNVERIFIED - Specific provisions regarding customer fund segregation, escrow requirements, or trust account maintenance under H.B. 1942]

Regulatory Powers

The Virginia State Corporation Commission and its Bureau of Financial Institutions possess broad enforcement authority to maintain regulatory compliance and consumer protection:

Administrative Enforcement

• License Denial or Revocation: The Commission may deny an application for or revoke the license of any money transmitter for violations of Virginia law or unsafe and unsound practices
• Cease and Desist Orders: The Commission may issue orders requiring licensees to cease any unlawful or unsafe practices
• Removal of Officers and Directors: The Commission may remove officers, directors, and key individuals for continued violations
• Mandatory Compliance Orders: The Commission may impose corrective action plans and operational restrictions

Civil Penalties

• Monetary Penalties: Civil penalties up to $10,000 per violation for knowing or negligent violations of the money transmitter statutes
• Additional Penalties: [UNVERIFIED - Whether additional penalty tiers exist under H.B. 1942 framework]

Judicial Enforcement

• The Commission acts as a court of record and conducts formal administrative hearings when enforcement actions are contested
• Orders of the Commission may be appealed to the Supreme Court of Virginia
• The SCC may seek injunctive relief and court enforcement of its orders

Grounds for Enforcement Action

Violations and unsafe practices subject to enforcement include:

• Operating without a valid license
• Failure to maintain minimum net worth or surety bond
• Material misstatement on applications
• Unauthorized use of customer funds
• Failure to comply with disclosure and reporting requirements
• Commingling of customer funds with business funds
• Failure to maintain adequate records
• Consumer fraud or deceptive practices

Regulatory Role and Function

Legal Foundation

Statutory Framework

The Virginia Bureau of Financial Institutions derives its regulatory authority from the Virginia Code, Title 6.2 (Financial Institutions and Services), particularly:

• Virginia Money Transmitter Act (Va. Code Ann. § 6.2-1901 through § 6.2-1921): Historical regulatory framework for money transmitters and money order sellers.
• Virginia Code Chapter 19.1 - Money Transmitters (effective July 1, 2026): Modernized statutory framework replacing Chapter 19, implementing the CSBS Model Money Transmission Modernization Act (H.B. 1942).

Additional regulatory provisions are codified in the Virginia Administrative Code (10 VAC 5-120-10 to 5-120-100) and administered by the Bureau of Financial Institutions.

Regulatory Jurisdiction

The BFI has binding regulatory authority over all persons and entities engaging in money transmission or money order sales within Virginia, whether or not the entity maintains a physical location in the Commonwealth. This applies to:

• Traditional money transmitters
• Money order sellers
• Check cashers
• Sales-based financing providers
• Other entities transferring or handling currency on behalf of consumers

Parent Organization

The Bureau of Financial Institutions operates as a division of the Virginia State Corporation Commission (SCC), which serves as the independent agency responsible for regulating securities, insurance, utilities, and financial institutions in Virginia. The SCC acts as a court of record with formal adjudicatory authority.

Licensing and Authorization Relevance

License Requirement

No person shall engage in the business of selling money orders or engage in the business of money transmission, whether or not the person has a location in the Commonwealth, unless the person obtains from the State Corporation Commission a license issued pursuant to Virginia Code § 6.2-1901 and related statutes.

Application Process

Money transmitter license applications must be submitted through the Nationwide Multistate Licensing System (NMLS), the coordinated licensing platform operated by the State Regulatory Registry LLC in partnership with state regulators. Virginia transitioned to NMLS-based licensing to facilitate multistate coordination and streamline the application process.

Required Application Materials

• Completed NMLS application form
• Proof of net worth (see Financial Requirements section)
• Audited financial statements prepared by a CPA
• Background check documentation
• Fingerprinting clearance
• Business plan and operating procedures
• Authorized delegate disclosure (if applicable)
• Criminal history assessment materials

License Scope and Duration

• License Expiration: Licenses expire on December 31 of each calendar year
• Renewal Requirement: Licensees must renew before the expiration date to continue operations
• Authorized Delegates: Licensees may designate and utilize authorized delegates to conduct money transmission activities on their behalf, subject to regulatory approval

License Verification

The public may verify money transmitter licenses through the NMLS Consumer Access portal at https://www.nmlsconsumeraccess.org/ or through the Virginia SCC Regulated Financial Institutions verification tool.

Minimum Net Worth

• Baseline Requirement: $200,000 minimum net worth (assets minus liabilities)
• Variable Requirement: The Virginia State Corporation Commission may impose a higher net worth requirement up to $1,000,000, based on the licensee's business model, projected transaction volume, risk profile, and other factors deemed relevant by the Commission

Surety Bond

• Minimum Bond: $25,000
• Maximum Bond: The Commission may require a surety bond of up to $500,000, based on the licensee's net worth and projected volume of money transmission sales
• Bond Terms: The surety bond must be issued by an authorized bonding company and payable to the Commonwealth of Virginia

Financial Statement Reporting

• Applicants must submit audited financial statements prepared by a CPA to verify net worth at the time of application
• Licensees must maintain records and undergo periodic financial examinations by the Bureau
• Annual financial reporting and compliance with net worth maintenance is required for license renewal

Capital and Liquidity Standards

[UNVERIFIED - Specific liquidity ratios and capital adequacy standards under the new MTMA framework (H.B. 1942) effective July 1, 2026, should be confirmed]

Virtual Currency Regulatory Position

The Virginia Bureau of Financial Institutions does not regulate virtual currencies as a distinct asset class. However, to the extent that virtual currency transactions also involve the transfer of fiat currency (such as U.S. Dollars, Euros, or Japanese Yen), the resulting money transmission activities fall under the purview of Virginia's money transmitter regulations.

MTMA Virtual Currency Carve-Out

When Virginia enacted H.B. 1942 (implementing the CSBS Model Money Transmission Modernization Act effective July 1, 2026), the legislation explicitly excluded the optional "virtual currency" provisions of the model law. Virginia's statutory definition of "money" does not include virtual currency, indicating a clear legislative intent to exempt pure virtual currency transactions from the definition of money transmission.

This means:

• Crypto-to-Crypto Exchanges: Not regulated as money transmitters under Virginia law
• Crypto-to-Fiat Conversions: Regulated under money transmitter law to the extent they involve transfer of fiat currency
• Stablecoin Transfers: Regulation depends on whether fiat currency conversion occurs; pure stablecoin-to-stablecoin transfers would not be regulated as money transmission

Fintech Oversight

The Bureau of Financial Institutions maintains supervisory authority over fintech companies operating as money transmitters, including:

• Payment technology providers
• Mobile money platforms
• Cryptocurrency and digital asset platforms that facilitate fiat transfers
• Alternative payment processors
• Non-bank payment service providers

[UNVERIFIED - Specific guidance on sand-box programs, innovation initiatives, or expedited review processes for fintech applicants]

Payments and Money Movement Relevance

The Virginia Bureau of Financial Institutions has the following relevance to payments and money movement in United States:

Payment Systems Governed or Overseen

The Virginia Bureau of Financial Institutions does not directly operate payment systems. Its payment-related role includes:

Money transmitters, payment processors, and fintech companies operating in this jurisdiction require licensing or registration with this entity.

Relationship to Other Regulators

Multistate Supervision Framework

Virginia is an active participant in the multistate supervisory processes established between state regulators and coordinated through:

• Conference of State Bank Supervisors (CSBS): Virginia participates in CSBS-coordinated regulatory initiatives, including the adoption and implementation of the Model Money Transmission Modernization Act
• Money Transmitter Regulators Association (MTRA): Virginia engages through MTRA (comprising regulators from 51 states and territories) for coordination on money transmitter supervision
• Nationwide Multistate Licensing System (NMLS): Virginia utilizes NMLS as the primary mechanism for coordinated licensing and information sharing

Multistate Licensing Process

Virginia's Code (Va. Code Ann. § 6.2-1920, effective July 1, 2026) defines and authorizes participation in "multistate licensing processes," which include:

• Coordinated processing of money transmitter license applications
• Control acquisition applications and determinations
• Notice and information requirements for changes in key individuals or business structure
• Information sharing protocols among state regulators

Information Sharing

The Virginia State Corporation Commission may:

• Cooperate and coordinate with other state and federal regulators regarding money transmitter supervision
• Share examination findings, consumer complaint information, and enforcement actions
• Provide notice to other state regulators through multistate agreements or the NMLS platform
• Receive information from other states regarding Virginia-licensed entities operating interstate

Federal Coordination

[UNVERIFIED - Specific mechanisms for coordination with federal regulators (FinCEN, Federal Reserve, CFPB, OCC) regarding money transmitter oversight, AML/CFT compliance, and consumer protection]

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Bureau of Financial Institutions - Main Contact

Mailing Address:

Bureau of Financial Institutions

P.O. Box 640

Richmond, Virginia 23218-0640

Physical Address:

State Corporation Commission

1300 East Main Street, Suite 800

Richmond, Virginia 23218

Telephone:

• Main Line: 804-371-9657
• Toll-Free: 1-800-552-7945

Fax:

804-371-9416

Email:

[email protected]

Office Hours:

Monday through Friday, 8:15 a.m. to 5:00 p.m.

Virginia State Corporation Commission Website

https://www.scc.virginia.gov/regulated-industries/bureau-of-financial-institutions/

Key Resources

• License Verification: https://www.scc.virginia.gov/consumers/banks-consumer-lenders/regulated-financial-institutions/
• Application Forms: https://www.scc.virginia.gov/regulated-industries/bureau-of-financial-institutions/application-forms/
• NMLS Consumer Access: https://www.nmlsconsumeraccess.org/
• Virginia Code Title 6.2, Chapter 19: Virginia Money Order Sellers and Money Transmitters (historical, repealed July 1, 2026)
• Virginia Code Title 6.2, Chapter 19.1: Virginia Money Transmitters (effective July 1, 2026)

Bureau Leadership

[UNVERIFIED - Name and contact information for current Commissioner of the Bureau of Financial Institutions or Bureau Director]

Notes on Naming and Language