Overview
The District of Columbia Department of Insurance, Securities and Banking (DISB) is the unified regulatory authority for financial services in the District of Columbia, including banking, insurance, securities, and money transmission. DISB operates as the territorial financial regulator under the authority of the District of Columbia Code and maintains comprehensive oversight of all money transmission activity within the District.
Basic Identity
| Field | Value |
|---|---|
| Official Name (English) | Core Identity Fields |
| Official Name (Local Language) | Core Identity Fields |
| Acronym | [Not applicable] |
| Country | United States |
| Jurisdiction Level | State |
| Official Website | https://code.dccouncil.gov/us/dc/council/code/titles/26/chapters/10" |
| Official Website Language(s) | English |
| Headquarters | United States |
| Year Established | Not publicly documented |
| Current Status | Active |
Classification
| Field | Value |
|---|---|
| Entity Type | Official Regulator |
| Control Layer | Layer 1 — Sovereign/Government Regulator |
| Legal Authority Level | Binding |
| Jurisdiction Level | State |
| Scope of Power | Licensing, Supervision, Enforcement, Rulemaking |
Inclusion Justification
| Field | Value |
|---|---|
| Why This Entity Is Included | Government-backed financial regulatory authority with statutory licensing, supervisory, and enforcement powers |
| Type of Influence | Direct |
| Exclusion Risk | Removes a key financial regulatory authority from the jurisdiction's control map |
What This Entity Oversees
DISB is responsible for:
- Licensing and regulation of banks operating in the District
- Oversight of insurance products and providers
- Securities and investment services regulation
- Money transmitter licensing and supervision
- Regulation of check cashers and money services businesses
- Fintech and emerging financial services oversight
- Cryptocurrency-related money transmission licensing
- Consumer protection and dispute resolution
Unified Regulatory Approach
DISB's comprehensive approach covers:
- Banking services (state and federal charters)
- Insurance distribution and underwriting
- Securities offerings and investment advisors
- Money transmission and payment services
- Consumer finance and lending
- Emerging financial technologies
Recent Updates and Guidance
Cryptocurrency Regulation
DISB clarified through Bulletin 22-BB-001 that virtual asset transmission constitutes money transmission under Chapter 10, requiring licensure for all cryptocurrency-related transmission activities. The department maintains active regulatory engagement with emerging financial technology sectors.
Location Requirements
DISB has issued specific guidance regarding physical location requirements for money transmitter licensees and other regulatory requirements for operating in the District.
Fintech Licensing
DISB actively regulates fintech companies engaged in money transmission or other financial services, requiring appropriate licensing for all financial technology platforms operating in the District.
While DISB oversees money transmission, other financial services in DC may fall under:
- Federal Reserve (national banks)
- Office of the Comptroller of the Currency (national banks)
- Federal Deposit Insurance Corporation (bank insurance)
- Securities and Exchange Commission (securities at federal level)
Regulatory Powers
DISB maintains comprehensive enforcement authority including:
- Investigation of violations
- License suspension or revocation
- Cease and desist orders
- Civil money penalties
- Criminal prosecution for unlicensed operation
- Consumer restitution orders
- Injunctive relief
Regulatory Role and Function
| Role | Description |
|---|---|
| Primary Role | Financial regulation and supervision within statutory mandate |
| Licensing Role | Issues authorizations and licenses within scope of authority |
| Supervisory Role | Supervision of regulated entities within mandate |
| Enforcement Role | Enforcement of applicable financial laws and regulations |
| Payment Systems Oversight Role | Payment system oversight where within mandate |
| AML / CFT Role | AML/CFT supervision within regulatory scope |
Legal Foundation
Statutory Foundation
Money transmitter regulation operates under:
- District of Columbia Code Title 26, Chapter 10 (D.C. Code § 26-1001 et seq.)
- D.C. Mayor's regulatory orders and rulemaking authority
- Commissioner's emergency orders and notices
Key Statutory Provisions
Criminal Penalties:
- Unlicensed money transmission is a felony
- Maximum penalty: $25,000 fine and/or 5 years imprisonment
- Reflects serious enforcement approach
Authorized Delegates:
- D.C. Code § 26-1004 permits licensees to designate authorized delegates
- Delegates may sell/issue payment instruments or transmit money on licensee's behalf
- Licensee retains ultimate responsibility for delegate conduct
Consumer Protection:
- Requires proper segregation of customer funds
- Mandates timely transmission of received funds
- Establishes consumer complaint procedures
- Authorizes investigation and enforcement
Location Requirements
DISB maintains specific requirements regarding physical location and presence in the District of Columbia for certain license types.
Licensing and Authorization Relevance
Licensing Authority
Money transmitters are licensed under the District of Columbia Code Title 26, Chapter 10, commonly known as the "Money Transmissions Act" or the "Money Transmitter Regulation Act." DISB administers licensing, examination, and enforcement under this statutory framework.
Definition of Money Transmission
Under D.C. Code § 26-1001, "money transmission" means:
- Sale or issuance of payment instruments
- Receiving money for transmission
- Transmitting money within the United States or to locations abroad
- Using any means including payment instrument, wire, facsimile, or electronic transfer
- Cryptocurrency-related transmission services (as clarified by regulatory bulletins)
Regulatory Treatment of Cryptocurrency
DISB issued Bulletin 22-BB-001 clarifying that virtual asset transmission constitutes money transmission under D.C. Code Title 26, Chapter 10. Entities engaged in cryptocurrency transmission must obtain money transmitter licenses.
Application Process
All applicants must:
- Submit applications online through the National Multistate Licensing System (NMLS)
- Provide all supporting documentation through NMLS
- Submit required surety bond or irrevocable letter of credit
- Provide evidence of net worth and financial condition
- Undergo background investigation and financial examination
- Submit fingerprints and biographical information for all principals
- Complete criminal history assessment
- Satisfy all jurisdiction-specific requirements
Financial Requirements
Net Worth Requirements:
- Minimum base net worth: $100,000
- Additional requirement: $50,000 per additional location
- Maximum requirement: $500,000
Surety Bond or Letter of Credit:
- Base amount: $50,000
- Additional amount: $10,000 per additional location
- Maximum: $250,000
- May substitute irrevocable letter of credit
Alternative Compliance:
- Applicants may meet requirements through surety bond OR irrevocable letter of credit (not both required)
Licensing Fees and Renewal
Initial License Fee:
- $500 base fee
- $25 per additional location
- Maximum total: $2,500
Renewal Fee:
- $500 base fee
- $25 per additional location
- Maximum total: $2,500
License Duration:
- Annual license period
- Expires December 31
- Renewal required before expiration
Payments and Money Movement Relevance
The Core Identity Fields has the following relevance to payments and money movement in United States:
| Function | Relevance |
|---|---|
| Payment System Oversight | Oversees payment systems and payment service providers within mandate |
| Licensing | Licenses entities involved in payment services where applicable |
| Consumer Protection | Enforces consumer protection rules for payment services |
| AML/CFT | Ensures payment service providers comply with AML/CFT requirements |
Payment Systems Governed or Overseen
The Core Identity Fields does not directly operate payment systems. Its payment-related role includes:
| Function | Relationship to Payments |
|---|---|
| Money Transmitter Licensing | Issues and supervises state money transmitter licenses |
| Consumer Lending Oversight | Regulates consumer lending and credit products with payment components |
| Bank Supervision | Supervises state-chartered banks that participate in payment systems |
| Consumer Protection | Enforces state consumer financial protection laws |
| Fintech Regulation | Oversees fintech companies and payment innovators operating in the state |
Money transmitters, payment processors, and fintech companies operating in this jurisdiction require licensing or registration with this entity.
Relationship to Other Regulators
The Core Identity Fields operates within United States's broader financial regulatory architecture and maintains relationships with:
| Counterpart Type | Relationship |
|---|---|
| Central Bank | Monetary policy and financial stability coordination |
| Ministry of Finance / Treasury | Policy coordination and legislative framework |
| Financial Intelligence Unit (FIU) | AML/CFT information sharing |
| Other Financial Regulators | Cross-sector coordination and information sharing |
| International Organizations | Cooperation through relevant international standard-setting bodies |
Geography and Jurisdiction Notes
| Field | Value |
|---|---|
| Applies Nationwide | No |
| Applies at State or Sub-National Level Only | Yes |
| Cross-Border or Regional Reach | No |
| Special Territorial Notes | State jurisdiction within United States |
Important Departments and Divisions
| Division / Department | Primary Function |
|---|---|
| Supervision Division | Oversight of regulated entities |
| Licensing Division | Processing of applications and authorizations |
| Enforcement Division | Investigation and prosecution of violations |
| Policy and Research Division | Regulatory policy development |
| Compliance Division | AML/CFT and regulatory compliance monitoring |
Key Public Resources
Main Office Address:
District of Columbia Department of Insurance, Securities and Banking
1050 First Street, NE, Suite 801
Washington, DC 20002
Phone: (202) 727-8000
Email: [email protected]
Website: https://disb.dc.gov
Hours: Monday through Friday, 8:15 AM to 4:45 PM (Eastern Time)
NMLS Contacts:
For NMLS-related questions, contact the NMLS directly at (855) 665-7123
- NMLS Application Portal: Submit applications online through the National Multistate Licensing System
- Licensing Information: Comprehensive jurisdiction-specific requirements available on website
- Licensed Entities Directory: Search directory of licensed money transmitters
- Consumer Complaint Portal: Submit complaints online or by phone
- Regulatory Bulletins: Access current guidance and regulatory updates
- Financial Services Licensing: Consolidated portal for all DISB licensing functions
Notes on Naming and Language
| Field | Value |
|---|---|
| Preferred English Rendering | Core Identity Fields |
| Official Local-Language Rendering | Core Identity Fields |
| Official Website Language(s) | English |