Mississippi Department of Banking and Consumer Finance

Overview

The Mississippi Department of Banking and Consumer Finance (DBCF) is the official state regulatory agency responsible for licensing, supervising, and examining money transmitters and other non-bank financial service providers operating in Mississippi. Established under Mississippi Code Title 81, Chapter 1, the DBCF operates under the direct authority of the Commissioner of Banking and Consumer Finance and enforces the Mississippi Money Transmitters Act (Miss. Code §§ 75-15-1 et seq.).

The DBCF's regulatory mandate extends beyond money transmitters to include oversight of state-chartered banks, credit unions, mortgage lenders, small loan companies, pawn brokers, check cashers, and other financial service providers. The agency is recognized as a primary Layer 1 regulator with binding legal authority over money transmission activity in Mississippi's jurisdiction.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Examination Authority and Scope

The DBCF possesses broad examination and inspection authority over licensed money transmitters under Mississippi Code § 75-15-19:

Examination Scope:

• Annual examination or audit of books and records of any licensee
• Examination may occur at any time deemed proper by the Commissioner
• Examinations may include on-site visits to licensee locations
• Full access to all business records related to money transmission activities

Cost Allocation: All examination costs are borne by the licensee, not the state

Recordkeeping and Reporting Requirements

Licensees must maintain comprehensive records and submit regular reports to the DBCF:

Monthly Reporting:

• Reporting Period: Within 15 days of the last business day of each month
• Content: Total amount of outstanding money transmissions in Mississippi
• Purpose: Enables the DBCF to monitor aggregate transmission volumes and assess surety bond adequacy

Annual Reporting:

• Financial Statement: Audited by independent certified public accountant or registered accountant
• Deadline: Within 5 months after close of licensee's fiscal year
• Content: Complete financial statement demonstrating compliance with net worth requirements

Record Retention:

• Retention Period: Minimum 5 years
• Availability: All records must be made available to the Commissioner for inspection and examination upon request
• Compliance: Failure to maintain or produce records may result in enforcement action

Customer Protections

The DBCF's money transmitter regulatory framework is designed to protect consumers through multiple mechanisms:

Surety Bond Protection: Customers are protected by the mandatory surety bond requirement, which ensures that transmitted funds are protected and that customers have recourse if the money transmitter fails to deliver funds or engages in fraudulent activity.

Capital Requirements: Net worth requirements ensure that money transmitters have sufficient financial resources to operate responsibly and maintain customer funds.

Examination and Supervision: Regular DBCF examinations ensure ongoing compliance with regulatory standards and identification of emerging risks.

Reporting Requirements: Monthly and annual reporting requirements provide the DBCF with visibility into money transmitter operations and outstanding transmission volumes.

Consumer Complaint Mechanisms

Requires verification from official sources - The DBCF maintains complaint procedures for consumers to report issues with licensed money transmitters. Specific procedures and contact information for consumer complaints should be obtained directly from the DBCF at (601) 321-6901 or through the official website at https://dbcf.ms.gov.

Regulatory Powers

The DBCF and the Commissioner of Banking and Consumer Finance possess comprehensive enforcement authority to ensure compliance with Mississippi's money transmission laws:

Licensing Actions

• License Denial: Authority to deny applications for money transmitter licenses that fail to meet statutory requirements
• License Suspension: Temporary suspension of a license for violations or non-compliance
• License Revocation: Permanent revocation of a license for serious violations or persistent non-compliance

Civil Enforcement

• Civil Penalties: Authority to assess civil penalties for violations of the Money Transmitters Act
• Cease and Desist Orders: Requires verification from official sources Authority to issue cease and desist orders requiring cessation of unlicensed money transmission activity
• Consent Orders: Requires verification from official sources Authority to enter into consent orders with licensees regarding corrective action

Criminal Referral

• Felony Prosecution: Serious violations of money transmission laws may be referred to state law enforcement and prosecuting authorities
• Fraud Cases: Suspected fraud or criminal activity may be referred to appropriate law enforcement agencies

Examination and Access

• Subpoena Authority: Requires verification from official sources Authority to subpoena records and compel testimony from licensees and related parties
• Records Inspection: Unrestricted access to all books and records of licensed money transmitters

Regulatory Role and Function

Legal Foundation

Statutory Foundation

The DBCF's authority to regulate money transmitters derives from Mississippi Code Title 75, Chapter 15, commonly known as the Mississippi Money Transmitters Act. This statute replaced the previous "Sale of Checks Law" and provides the comprehensive legal framework for money transmitter licensing, operation, and supervision in Mississippi.

Key Statutory Provisions:

• Mississippi Code §§ 75-15-1 to 75-15-35: Complete Money Transmitters Act defining licensing requirements, financial standards, reporting obligations, and enforcement mechanisms
• Mississippi Code § 75-15-11: Establishes financial statement, surety bond, NMLS registration, and background check requirements
• Mississippi Code § 75-15-19: Specifies monthly reporting of outstanding money transmissions, annual audited financial statements, and examination authority
• Mississippi Code Title 81, Chapter 1: Establishes the DBCF as the state banking regulator with supervisory authority
• Mississippi Code § 81-1-61: Defines the Commissioner of Banking and Consumer Finance position, qualifications, and regulatory authority

Commissioner Authority

The Commissioner of Banking and Consumer Finance holds broad supervisory and enforcement authority under Mississippi law, including:

• Authority to issue, deny, suspend, or revoke money transmitter licenses
• Power to conduct examinations and inspections of licensee books and records
• Authority to assess civil penalties and pursue enforcement actions
• Rulemaking authority to implement statutory requirements through regulation

Current Leadership:

• Commissioner: Rhoshunda Kelly
• Deputy Commissioner: Sam Hubbard

Licensing and Authorization Relevance

Licensing Requirement and System

Mississippi requires all entities engaged in money transmission activities within the state to obtain a valid money transmitter license from the DBCF. The licensing process is administered through the Nationwide Multistate Licensing System (NMLS), which provides a unified application portal for money transmitters seeking licenses across multiple states.

NMLS Contact Information:

• Phone: 1-855-NMLS-123 (1-855-665-7123)
• Portal: https://www.nmlsconsumeraccess.org

Financial Requirements

Applicants for money transmitter licensing must demonstrate adequate capitalization through net worth requirements specified in Mississippi Code § 75-15-11:

Net Worth Standards:

• Minimum Base Net Worth: $25,000
• Additional Location Requirement: $15,000 for each location in excess of one at which the applicant proposes to conduct money transmissions
• Maximum Cap: $250,000 (net worth requirements do not exceed this amount regardless of number of locations)

Example Calculation: An applicant operating at three locations would require a minimum net worth of $25,000 + ($15,000 × 2) = $55,000, provided the total does not exceed $250,000.

Documentation Required: Applicants must submit a financial statement audited by an independent certified public accountant or registered accountant, demonstrating compliance with net worth requirements.

Surety Bond Requirements

A critical component of Mississippi money transmitter licensing is the surety bond requirement, which protects customers and ensures licensee accountability.

Bond Requirements:

• Minimum Principal Amount: $25,000
• Alternative Calculation: Amount equal to the licensee's outstanding money transmissions in Mississippi (if greater than $25,000)
• Maximum Bond Requirement: $500,000
• Bonding Entity: Surety bond must be issued by a bonding company or insurance company authorized to do business in Mississippi

Alternative to Bond:

Applicants may satisfy the bond requirement by submitting proof of a government bond or certificate of deposit (CD) in an amount equal to the required bond principal.

Purpose: The surety bond serves as a consumer protection mechanism, ensuring that customers have recourse if the money transmitter fails to deliver transmitted funds or engages in fraudulent activity.

Licensing Fees

The DBCF assesses fees to cover the costs of license investigation, processing, and ongoing supervision:

Initial Licensing:

• Investigation fee: $50
• Initial license fee: $750
• Total Initial Cost: $800

Renewal Licensing:

• Renewal license fee: $400
• Additional location fee: $50 per additional location (aggregate additional location fees capped at $1,000)

Fee Structure Note: Fees are not pro-rated if an application is submitted during an ongoing license period.

License Period and Renewal

License Term: January 1 through December 31 (calendar year)

Annual Renewal: Required each year through the NMLS system

Renewal Deadline: Applications must be renewed before December 31 to maintain continuous licensing

Pro-Ration: License fees are not pro-rated for applications made during the license period

Continuing Education Requirement

Mississippi imposes an annual continuing education requirement for money transmitter licensees:

Requirement:

• Minimum Hours: 6 hours of continuing education per calendar year
• Subject Matter: [UNVERIFIED - specific approved topics not identified]
• Documentation: Certificate of completion must be submitted with license renewal application
• Failure to Comply: Non-compliance may result in license renewal denial or disciplinary action

Capitalization and Liquidity Standards

Beyond net worth requirements, the DBCF ensures that money transmitters maintain sufficient financial strength through:

1. Net Worth Requirements (as detailed above)
2. Surety Bond Protections (as detailed above)
3. Financial Statement Verification: Annual audited financial statements by independent CPAs
4. Periodic Review: The DBCF may require updated financial statements as part of examination or supervision activities

Capital Maintenance

Licensees must maintain their required capital levels at all times. Any material change in financial condition must be reported to the DBCF, and failure to maintain required net worth or bond levels may result in:

• License suspension
• License revocation
• Enforcement action by the Commissioner
• Cease and desist orders

Virtual Currency Regulation

Requires verification from official sources - The DBCF does not appear to have a separate virtual currency or cryptocurrency licensing program. Money transmitters engaged in virtual currency activities (such as digital asset exchanges or stablecoin issuance) may fall under the general money transmitter licensing regime, but specific regulatory guidance for virtual currency activities is not publicly identified.

Fintech Integration

The DBCF's money transmitter licensing framework encompasses a broad range of payment service providers and may include fintech entities engaged in money transmission activities. Companies providing digital payment services, mobile money transfer, or other payment transmission services would generally require a money transmitter license if they:

• Accept money in Mississippi
• Transmit or deliver money on behalf of customers
• Provide money transmission services to Mississippi residents

Regulatory Uncertainty

Requires verification from official sources - Specific guidance regarding blockchain-based payment systems, stablecoins, or decentralized finance (DeFi) platforms is not publicly available from the DBCF. Fintech companies in these areas should contact the DBCF directly to determine licensing requirements and regulatory expectations.

Payments and Money Movement Relevance

The Department Of Banking And Consumer Finance has the following relevance to payments and money movement in United States:

Payment Systems Governed or Overseen

The Department Of Banking And Consumer Finance 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

NMLS Participation

The DBCF participates in the Nationwide Multistate Licensing System (NMLS), which provides:

• Unified application portal for multi-state money transmitter licensing
• Standardized application process across participating states
• Coordinated background checks and financial verification
• Interstate regulatory coordination and information sharing

Federal Coordination

The DBCF coordinates with federal financial regulators and law enforcement:

FinCEN Coordination: Money transmitters operating in Mississippi must comply with federal money transmitter registration and reporting requirements under FinCEN authority. The DBCF operates in coordination with FinCEN requirements.

Regulatory Alignment: The DBCF's regulatory requirements are designed to align with federal standards while maintaining state-level supervision.

Reciprocal Licensing

Requires verification from official sources - Information regarding reciprocal licensing agreements or reciprocity with other states' money transmitter regulators is not publicly available. Money transmitters seeking to operate in multiple states must generally obtain licenses in each state where they conduct business.

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Primary Contact Information

Mississippi Department of Banking and Consumer Finance

Physical Address:

4780 I-55 North, 5th Floor

Jackson, Mississippi 39201

United States

Mailing Address:

P.O. Box 12129

Jackson, Mississippi 39236-2129

United States

Phone: (601) 321-6901

Fax: (601) 321-6933

Website: https://dbcf.ms.gov

Consumer Finance Division: https://dbcf.ms.gov/consumer-finance/

Money Transmitter Licensing

NMLS Portal and Contact:

• System: Nationwide Multistate Licensing System
• Phone: 1-855-NMLS-123 (1-855-665-7123)
• Website: https://www.nmlsconsumeraccess.org

Direct Contact with DBCF:

For questions about Mississippi money transmitter licensing, applicants should contact the DBCF Consumer Finance Division at the above contact information.

Leadership

• Commissioner: Rhoshunda Kelly (Commissioner of Banking and Consumer Finance)
• Deputy Commissioner: Sam Hubbard

For current organizational structure and specific division contacts, contact the main DBCF office.

Additional Resources

• Staff Directory: https://dbcf.ms.gov/dbcf-staff/
• Contact Page: https://dbcf.ms.gov/contact/
• Regulatory Filings: Licensed money transmitters list available from DBCF

Notes on Naming and Language