West Virginia Division of Financial Institutions

Overview

The West Virginia Division of Financial Institutions (WVDFI) is the primary state-level regulatory agency responsible for overseeing money transmission licensing, financial institution chartering, and regulation of various financial service providers in West Virginia. The Division operates under the Department of Revenue and is charged with regulating state-chartered and licensed financial institutions to ensure their products and services are safe, fair, and necessary for the financial public.

The Division supervises:

• State-chartered banks
• State-chartered credit unions
• Regulated consumer lenders
• Mortgage lenders and brokers
• Money transmitters, transporters, and currency exchangers
• Check cashers
• Supervised financial institutions

Primary Jurisdiction: State-level regulation of money transmission and related financial services in West Virginia. The Division exercises binding regulatory authority and enforcement powers over all entities engaged in money transmission activities operating in the state.

Regulatory Mission: Protect consumers, ensure financial system stability, enforce compliance with state banking and financial services laws, and maintain public confidence in regulated financial institutions.

Basic Identity

• Entity ID: reg-us-wv-dfi
• Entity Name: West Virginia Division of Financial Institutions
• Jurisdiction: West Virginia (State), United States
• Regulatory Control: Layer 1 (Primary State Regulator)
• Authority: Binding (statutory)
• SEO Slug: /regulators/west-virginia-division-of-financial-institutions/
• Confidence: 95%
• Created: April 5, 2026
• Last Updated: April 5, 2026
• File: A091-US-WV-division-of-financial-institutions.md

End of Document

Classification

Inclusion Justification

What This Entity Oversees

Examination Authority

The Commissioner of Financial Institutions holds statutory authority to conduct thorough examinations of all books, accounts, records, and papers of every licensed financial institution and money transmitter, using examination frequency aligned with the institution's risk profile.

Examination Scope:

• Review of all assets, including notes, drafts, checks, mortgages, and securities
• Verification of liabilities and documentation
• Assessment of compliance with applicable regulations
• Evaluation of internal controls and risk management
• Review of customer transactions and consumer complaints
• Verification of net worth and bonding compliance

Examination Frequency

Requires verification from official sources – Typical examination schedules align with federal banking standards:

• Standard-risk licensees: Annual examination
• Higher-risk or troubled licensees: More frequent (semi-annual or as-needed)
• Supervisory exams may be conducted in response to specific concerns or complaints

Supervisory Requirements

Ongoing Compliance Obligations:

• Maintain net worth and bonding requirements
• Submit annual financial statements and regulatory reports
• Update NMLS account information
• Report material changes in ownership, operations, or locations
• Maintain consumer complaint procedures and records
• Comply with anti-money laundering (AML) and Know-Your-Customer (KYC) requirements
• Preserve transaction records and consumer disclosures

Record Retention and Reporting

Requires verification from official sources Licensees must maintain records of:

• All money transmission transactions
• Customer identification and verification information
• Suspicious activity reports
• Compliance certifications
• Annual financial statements

Disclosure Requirements

Requires verification from official sources Money transmitters are required to disclose:

• Fees and charges for money transmission services
• Exchange rates (if applicable for currency conversion)
• Estimated delivery times for transmitted funds
• Customer rights and remedies
• License status and regulatory authority

Transaction Limits and Controls

Cryptocurrency ATM Regulations (House Bill 5353, signed by Governor Patrick Morrisey):

• Daily transaction limits on crypto ATMs [specific limits not detailed in available sources]
• Written paper receipt requirement for all transactions
• Disclosure requirements and warning notices
• Refund policies for fraudulent transactions (limited circumstances)
• ATM operator liability for unauthorized or erroneous transactions

Anti-Money Laundering and Know-Your-Customer

Money transmitters in West Virginia must comply with:

• Federal AML/KYC requirements under Bank Secrecy Act
• West Virginia AML/KYC standards (may exceed federal minimums)
• Suspicious Activity Reporting (SAR) requirements
• Customer Identification Program (CIP) standards
• Enhanced due diligence for high-risk customers

Required Information:

• Customer name and address
• Government-issued identification
• Beneficial ownership information (for business customers)
• Beneficial ownership certification statements

Consumer Remedies

Requires verification from official sources Consumers may:

• File complaints with the Division
• Seek restitution for losses through Division enforcement
• Assert claims under consumer protection laws
• Access Division complaint and enforcement records

Regulatory Powers

Regulatory Enforcement Authority

The Commissioner of Financial Institutions is vested with broad enforcement powers to ensure compliance with state money transmission laws, including:

Investigative Authority:

• Conduct investigations into alleged violations of WV Code Chapter 32A
• Subpoena records, documents, and testimony from licensees and third parties
• Examine books, accounts, and records at any time
• Assess violations of regulatory standards

Enforcement Actions Requires verification from official sources:

• Cease and Desist Orders – Direct a violator to stop illegal activities
• Administrative Fines and Penalties – Monetary penalties for violations
• License Suspension – Temporary revocation of money transmitter license
• License Revocation – Permanent revocation for serious or repeated violations
• Restitution Orders – Require restitution to consumers who suffered losses
• Remedial Action Orders – Require specific corrective actions
• Consent Orders – Settlement agreements with specific compliance requirements

Grounds for License Denial, Suspension, or Revocation

Requires verification from official sources Enforcement action may be taken for:

• Failure to maintain required net worth or bonding
• Violation of WV Code Chapter 32A or Division regulations
• Fraudulent or dishonest conduct
• Misrepresentation in license application
• Consumer complaints and fraud
• Failure to comply with AML/KYC requirements
• Unsafe or unsound business practices
• Violation of anti-money laundering laws
• Failure to maintain adequate records or respond to examinations
• Operating without current license

Administrative Actions

[Available on Division website]: https://dfi.wv.gov/administrative_actions/Pages/default.aspx

The Division publishes administrative actions (enforcement orders, consent orders, license revocations) on its website for transparency and public record.

Consumer Complaint Process

Consumers may file complaints against money transmitters with the Division:

• Complaint Portal: https://dfi.wv.gov/consumers/complaints/Pages/default.aspx
• Phone: (304) 558-2294
• Mail: West Virginia Division of Financial Institutions, 900 Pennsylvania Avenue, Suite 306, Charleston, WV 25302

Regulatory Role and Function

Legal Foundation

Statutory Framework

Money transmission licensing in West Virginia is governed by West Virginia Code Chapter 32A, Article 2: "Checks and Money Order Sales, Money Transmission Services, Transportation and Currency Exchange" (also referenced as WV Code §32A-2).

Key Statutory Provisions:

• West Virginia Code Section 32A-2-1 – Definitions of currency exchange, transportation, and transmission
• West Virginia Code Section 32A-2-2 – Licensing requirement: "A person may not engage in the business of currency exchange, transportation, or transmission in this state without a license issued under this article"
• West Virginia Code §32A-2-3 through §32A-2-10 – License application procedures, bonding requirements, and operational standards

Regulatory Definitions

"Money Transmission" under WV law includes:

• Receiving currency and transmitting that currency by wire, facsimile, or electronic means
• Transmitting funds through financial institutions, financial intermediaries, the Federal Reserve system, or other funds transfer networks
• Issuance and sale of stored value or prepaid product cards intended for general acceptance in commercial or consumer transactions
• Payroll processing services

"Currency Exchange" means the conversion of the currency of one government into the currency of another government (excluding travelers checks denominated in foreign currency).

Statutory Extraterritorial Reach

West Virginia's money transmission law applies to all persons engaging in currency exchange, transportation, or transmission activities in the state, including those making services available through Internet websites accessible to West Virginia citizens for electronic transactions.

Authority References

The Commissioner of Financial Institutions holds statutory authority to:

• Issue and revoke money transmitter licenses
• Set bonding requirements and financial standards
• Examine and supervise licensees
• Investigate violations and take enforcement action
• Establish regulatory standards and interpretive guidance

Licensing and Authorization Relevance

License Requirement

Mandatory: Any person or entity engaging in the business of money transmission in West Virginia must obtain a license from the Division of Financial Institutions prior to commencing operations. Violation of this requirement constitutes an offense under WV law.

License Types

The Division issues licenses for:

1. Money Transmission/Money Transmitter – Primary license for entities engaged in transmitting funds by wire, electronic means, or through funds transfer networks
2. Currency Exchange – License for entities converting currency between governments
3. Currency Transportation – License for entities physically transporting currency
4. Check Cashing – License for entities engaged in check cashing (when not incidental to primary business)
5. Sale of Checks and Money Orders – License for entities selling these instruments

Application Process

Procedure [UNVERIFIED - source: secondary sources]:

1. Register with the Nationwide Multistate Licensing System (NMLS) at www.nmlsconsumeraccess.org
2. Complete Company Account Request Form in NMLS
3. Identify Primary Account Administrator and Secondary Account Administrator
4. Submit application through NMLS with required documentation
5. Division reviews and processes application (target: within 120 days)
6. Applicant receives approval or deficiency notice
7. Upon approval, license is issued for one-year term

Application Fees:

• Initial registration fee: $1,000
• Additional location fee: $20 per location (maximum cumulative fee: $25,000)
• Requires verification from official sources NMLS processing fee: $100 per application

License Renewal and Term

• License Term: One year from date of issuance
• Renewal Deadline: Must be renewed annually before December 31
• Renewal Fee: $250 plus $20 for each additional location (maximum: $10,000)
• Renewal applications must be submitted through NMLS

NMLS Registration

West Virginia requires all money transmitter applicants and licensees to maintain an active NMLS account and submit applications electronically through NMLS. The state uses NMLS as the official licensing and regulatory database.

NMLS Requirements:

• Create and maintain company account in NMLS
• Update account information within prescribed timeframes
• Submit Electronic Surety Bonds through NMLS
• Maintain current records and regulatory filings
• Pay NMLS processing fees in addition to state fees

Minimum Net Worth Requirement

Tangible Net Worth: Applicants and licensees must maintain a minimum tangible net worth of $50,000, calculated as assets minus liabilities, with the following adjustments:

Tiered Net Worth Structure:

• Base requirement: $50,000
• Additional $25,000 for each authorized agent or delegate location in West Virginia
• Maximum requirement: $1,000,000 (caps the total requirement)

Example:

• Single location (no agents): $50,000
• Single location with 5 agents: $50,000 + (5 × $25,000) = $175,000
• 10+ locations or agents: capped at $1,000,000

Net Worth Verification: Requires verification from official sources Applicants must submit financial statements (balance sheet, income statement) audited or reviewed by a CPA to demonstrate compliance.

Surety Bond Requirement

Mandatory Bonding: All money transmitter licensees must post and maintain a surety bond from a surety company authorized to conduct business in West Virginia and acceptable to the Commissioner.

Bond Amount Structure:

For Money Transmission (primary activity):

• Base amount: $300,000
• Additional $5,000 for each authorized agent or delegated location in West Virginia
• Total obligation range: $300,000 to $1,000,000+ (depending on scale of operations)

For Currency Exchange, Check Cashing, or Money Order Sales (if applicable):

• Base amount: $100,000
• Additional $25,000 for each authorized agent or delegated location
• Maximum requirement: $1,000,000

Bond Premium Costs Requires verification from official sources:

• Typically 1-5% of bond amount annually
• Example: $300,000 bond costs $3,000-$15,000 per year
• Applicants responsible for all premium costs

Bond Requirements:

• Must name the Division of Financial Institutions or the Commissioner as obligee
• Must be continuous and remain in force during license term
• Must be renewed or replaced before expiration
• Surety bond failures result in immediate enforcement action

Capital and Cash Reserve Requirements

Requires verification from official sources – No specific regulatory minimum capital-to-assets ratio is publicly specified in available sources, but the Division may impose additional capital requirements on individual licensees based on risk assessment and examination findings.

Virtual Currency Regulation

Statutory Status: House Bill 2585 (2019) amended WV Code Chapter 32A to explicitly include virtual currencies within the definition of money transmitters and money transmission activities.

Definition: Virtual currency is treated as a form of money for licensing and regulatory purposes when:

• Used to buy, sell, or exchange goods/services
• Used for transmission of value to third parties
• Held or transferred through digital wallets or platforms

Virtual Currency Licensing

Requirement: Entities engaging in the business of virtual currency exchange, transmission, or storage must obtain a money transmitter license from the Division.

Scope of Regulation:

• Cryptocurrency exchanges operating in West Virginia
• Cryptocurrency wallet and custody providers
• Decentralized finance (DeFi) platforms offering transmission services
• Stablecoin issuers (if engaged in transmission activities)
• Virtual currency merchants and service providers

Cryptocurrency ATM (Kiosk) Regulation

House Bill 5353 Requirements (2024/2025 implementation):

• Crypto ATM operators must obtain money transmitter license
• Disclosure requirements and conspicuous warning notices
• Daily transaction limits [specific limits Requires verification from official sources)
• Written receipt for all transactions
• Customer identification and verification
• Refund policies for fraudulent transactions
• Record retention and reporting to Division

Fintech Sandbox Program

West Virginia operates a Fintech Regulatory Sandbox that allows:

• Temporary exemptions from certain regulatory requirements
• Select cryptocurrency and fintech companies to operate experimentally
• Reduced compliance costs and faster time-to-market
• Innovation in virtual currency, blockchain, and fintech services
• Pathway to permanent licensing upon successful pilot completion

Sandbox Characteristics:

• Limited duration (typically 1-2 years)
• Limited participant caps and transaction limits
• Consumer protection safeguards maintained
• Regular reporting and Division oversight
• Gateway to full licensing upon successful completion

Regulatory Stance on Cryptocurrency

West Virginia has positioned itself as a crypto-friendly jurisdiction with:

• Clear regulatory framework for virtual currency
• Fintech sandbox to encourage innovation
• Streamlined NMLS licensing for crypto entities
• Regulatory clarity on stablecoins and DeFi activities
• Consumer protection standards without overregulation

Payments and Money Movement Relevance

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

Payment Systems Governed or Overseen

The West Virginia Division 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 Licensing System (NMLS)

West Virginia participates in the Nationwide Multistate Licensing System (NMLS) for money transmitter licensing:

• Single application portal for multistate applicants
• Coordinated licensing across participating states
• Shared regulatory database
• Interstate reciprocity framework

Interstate Agreements and Cooperation

Requires verification from official sources The Division coordinates with:

• Multistate Money Services Entities (MSEs): Entities licensed in multiple states
• Federal regulators: FinCEN, Federal Reserve, OCC for compliance oversight
• Peer state regulators: Through Conference of State Banking Supervisors (CSBS) and Money Transmitter Regulators Association (MTRA)
• Law enforcement: FBI, Secret Service, and state law enforcement for fraud investigations

Reciprocal Recognition

West Virginia recognizes money transmitter licenses issued by other states within the NMLS framework, though:

• Entities must comply with West Virginia-specific requirements
• Net worth and bonding may differ by state
• AML/KYC standards must meet or exceed federal requirements

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Official Contact Information

West Virginia Division of Financial Institutions

• Address: 900 Pennsylvania Avenue, Suite 306, Charleston, West Virginia 25302 (West Virginia Lottery Building)
• Phone: (304) 558-2294
• Fax: (304) 558-0442
• Website: https://dfi.wv.gov/

Leadership [as of April 2026]

• Commissioner of Financial Institutions: Requires verification from official sources Dawn E. Holstein (under Department of Revenue, Cabinet Secretary Dave Hardy)
• General Counsel: Requires verification from official sources Kathy Lawson

Regulatory Resources

• Money Transmitter Information Page: https://dfi.wv.gov/other_licenses/MoneyTransInfo/Pages/CurrencyTransmission.aspx
• License Application Portal: Nationwide Multistate Licensing System (NMLS) – www.nmlsconsumeraccess.org
• Laws and Regulations: https://dfi.wv.gov/laws_regulations/Pages/default.aspx
• Consumer Complaints: https://dfi.wv.gov/consumers/complaints/Pages/default.aspx
• Administrative Actions: https://dfi.wv.gov/administrative_actions/Pages/default.aspx
• Forms and Applications: https://dfi.wv.gov/forms/Pages/default.aspx

Money Transmitter Licensing Team

Requires verification from official sources Contact Division directly for specific licensing inquiries:

• Phone: (304) 558-2294
• Email: [not publicly listed – contact via phone or mailing address]

Emergency and Regulatory Escalation

• Consumer Complaints: File through Division website or by mail
• Fraud Reporting: File with Division and FBI
• Bank Secrecy Act Issues: Report to FinCEN (federal requirement)
• Illegal Activity: Report to West Virginia law enforcement or FBI

Notes on Naming and Language