District of Columbia Department of Insurance, Securities and Banking

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

Classification

Inclusion Justification

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

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:

1. Submit applications online through the National Multistate Licensing System (NMLS)

2. Provide all supporting documentation through NMLS

3. Submit required surety bond or irrevocable letter of credit

4. Provide evidence of net worth and financial condition

5. Undergo background investigation and financial examination

6. Submit fingerprints and biographical information for all principals

7. Complete criminal history assessment

8. 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:

Payment Systems Governed or Overseen

The Core Identity Fields 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

The Core Identity Fields operates within United States's broader financial regulatory architecture and maintains relationships with:

Geography and Jurisdiction Notes

Important Departments and Divisions

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