North Carolina Office of the Commissioner of Banks (NCCOB)

Overview

Regulator ID: reg-us-nc-ocob

Regulation Type: Money Transmission Licensing & Oversight

Authority Level: State (Layer 1 - Binding Authority)

The North Carolina Office of the Commissioner of Banks (NCCOB) is the official state regulatory authority responsible for chartering, examining, and regulating financial institutions in North Carolina, including state banks, trust companies, mortgage companies, and money transmitters. The NCCOB administers the North Carolina Money Transmitters Act and maintains comprehensive oversight of all entities engaged in money transmission within the state.

Under the leadership of Katherine M.R. Bosken (Commissioner since August 31, 2021; reconfirmed for four-year term ending March 31, 2027), the NCCOB enforces strict licensing, capital, and bonding requirements for money transmitter operators and conducts ongoing examination and supervision to ensure consumer protection and financial stability.

Website: https://nccob.nc.gov

Primary Contact Email: [email protected]

Phone: 919-733-3016 | Toll-Free: 1-800-874-9791

Address: 4309 Mail Service Center, Raleigh, NC 27699-4309

Fax: 919-733-6918

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Examination Authority

The NCCOB maintains broad examination and inspection authority to:

• Conduct on-site examinations of licensed money transmitters
• Review books, accounts, records, and business practices
• Interview officers, directors, and employees
• Obtain copies of relevant documents and communications
• Assess compliance with licensing conditions and statutory requirements

Record-Keeping Requirements

• Duration: Minimum of three (3) years for all books, accounts, and records
• Content: All records necessary to verify compliance with the Act
• Access: Must be available for NCCOB examination upon request
• Retention: Records must be maintained at principal place of business or as approved by Commissioner

Consumer Protection Procedures

All licensed money transmitters must implement and maintain documented procedures for:

• Consumer disclosures and fee transparency
• Dispute resolution and complaint handling
• Fraud prevention and detection
• Customer identification and verification
• Recordkeeping for consumer transactions
• Safeguarding of customer funds

Requires verification from official sources Specific procedural standards and minimum requirements detailed in NCCOB examination handbooks and licensing guidelines.

Consumer Rights and Protections

The NCCOB enforces consumer protections through the Money Transmitters Act, including:

1. Fee Transparency: Money transmitters must clearly disclose all fees and exchange rates to consumers prior to transaction
2. Dispute Resolution: Consumers have the right to initiate disputes for unauthorized or erroneous transactions
3. Fund Safety: Money transmitters may be required to segregate or bond customer funds to ensure safety
4. Privacy Protection: Customer information subject to confidentiality requirements

Consumer Complaint Process

• Submission: Consumers may file complaints with NCCOB regarding licensed money transmitters
• Investigation: NCCOB investigates complaints and may initiate enforcement action based on findings
• Resolution: NCCOB works with licensees to remediate consumer harm and prevent future violations
• Contact: Complaints may be submitted through NCCOB website or by contacting [email protected]

Consumer Education and Alerts

The NCCOB regularly issues consumer alerts regarding:

• Fraud schemes involving money transmitters or remittance services
• Virtual currency risks and scams
• Cryptocurrency ATM/kiosk fraud (consumer alerts note these are not affiliated with banks and present fraud risks)
• Best practices for safe money transmission
• Verification resources for checking licensee status

Filing Status

• Entity Page ID: A076
• Status: Complete (Partially Verified)
• Verification Date: 2026-04-05
• Authority Tier: Layer 1 (Binding/State Regulatory Authority)
• Review Recommendation: Verify Requires verification from official sources sections through direct NCCOB contact if needed for compliance or operational purposes

Regulatory Powers

Administrative Actions

The NCCOB possesses comprehensive enforcement authority including power to:

• Issue Cease and Desist Orders to stop unlicensed money transmission activity
• Impose Administrative Penalties for violations of the Money Transmitters Act
• Suspend or Revoke Licenses for material violations, fraud, unsafe practices, or non-compliance
• Order Restitution to affected consumers or entities
• Require Corrective Action Plans with specified remediation timelines
• Place License on Probation with enhanced supervision and reporting requirements

Civil and Criminal Remedies

• Civil Enforcement: NCCOB may pursue civil actions for injunctive relief and damages
• Coordination with Law Enforcement: NCCOB may refer matters to state or federal law enforcement for criminal prosecution
• Violation Penalties: Unauthorized money transmission subject to criminal penalties per N.C.G.S. § 53-208.43 et seq.
• Consumer Restitution: Violators may be ordered to reimburse consumers for losses resulting from unlicensed activities

Violation Categories

Common enforcement triggers include:

• Operating without a valid license
• Failure to maintain required net worth or surety bond
• Misappropriation or improper handling of customer funds
• Fraud or deceptive practices
• Failure to comply with reporting requirements
• Unsafe or unsound business practices
• Failure to maintain required records
• Consumer harm or complaints indicative of systemic issues

Regulatory Role and Function

Legal Foundation

Statutory Framework

The NCCOB's authority to regulate money transmitters derives from the North Carolina Money Transmitters Act, codified in N.C. General Statutes (NCGS) § 53-208.41 et seq. (Article 16B of Chapter 53). The Act was enacted via legislation (H.B. 289) to establish comprehensive state-level licensing and regulatory requirements for all entities engaged in money transmission services.

Legal Authority Citation: N.C.G.S. § 53-208.41 et seq.

Definition of Money Transmitter

Under N.C.G.S. § 53-208.42, a "money transmitter" is defined as any business entity that:

• Sells or issues payment instruments or stored value primarily for personal, family, or household purposes; OR
• Receives money or monetary value for transmission or holding funds incidental to transmission within the United States or to locations abroad by any means, including:
• Payment instruments
• Stored value
• Wire transfers
• Facsimile transmission
• Electronic transfer
• Primarily serves personal, family, or household purposes, including maintaining control of virtual currency on behalf of others

Regulatory Scope

The NCCOB exercises binding authority to:

• Issue, deny, suspend, or revoke money transmitter licenses
• Establish and enforce financial requirements (net worth, bonding, capital reserves)
• Conduct examinations and inspections
• Investigate consumer complaints and potential violations
• Impose administrative and civil penalties
• Enter into multistate agreements and coordinate with federal regulators

The NCCOB's authority is exclusive within North Carolina's jurisdiction and supersedes local regulations on money transmission. All licensing applications must be submitted through the Nationwide Multistate Licensing System & Registry (NMLS).

Licensing and Authorization Relevance

License Application Process

All entities engaged in money transmission must obtain a license from the NCCOB. The application process requires:

1. NMLS Submission: All applications must be filed through the Nationwide Multistate Licensing System & Registry
2. Audited Financial Statements: Required from a Certified Public Accountant (CPA)
3. Compliance with Capital Requirements: Minimum net worth of $250,000
4. Surety Bond Submission: Initial $150,000 surety bond through NMLS (no paper bonds accepted)
5. Background Checks: Principals, officers, and shareholders subject to review
6. Business Plan Documentation: Description of money transmission operations and consumer protection procedures

License Characteristics

• License Type: Perpetual (does not expire)
• Renewal Requirement: Annual renewal through NMLS
• Renewal Period: November 1 – December 31 each calendar year
• License Maintenance: Must maintain active NMLS profile and compliance status to continue operations
• Multi-jurisdictional: NC license does not automatically authorize operations in other states; separate licensing required per state regulations

Exemptions

Certain entities may qualify for exemptions under N.C.G.S. § 53-208.44, which includes:

• Federally chartered banks
• State chartered banks
• Credit unions (federally and state chartered)
• Savings and loan associations
• Certain payment processors and settlement agents
• Specific exempt remittance transfer providers

Requires verification from official sources Complete list of exemptions and exemption confirmation procedures available through NCCOB directly.

Net Worth Requirements

• Minimum Company Net Worth: $250,000 (calculated as Assets minus Liabilities)
• Documentation: Audited financial statement prepared by a CPA required with initial application
• Ongoing Compliance: Licensees must maintain minimum net worth throughout license period
• Verification: Annual Call Reports through NMLS serve as ongoing net worth verification mechanism

Surety Bond Requirements

• Initial Bond Amount: $150,000
• Bond Type: Surety bond only; no cash bonds accepted
• Submission Method: Through NMLS only; no paper bonds accepted
• Bond Maintenance: Must remain in full force throughout license period
• Increase Triggers: Bond amounts may be increased based on transaction volume thresholds
• Increase Deadline: If increase required, must be submitted by May 31st of applicable year

Quarterly Reporting

• Report Type: Money Service Businesses Call Reports
• Submission Method: Through NMLS
• Reporting Frequency: Quarterly
• Due Date: 60 days after the end of each calendar quarter (approximately February 28/29, May 31, August 31, November 30)
• Report Content: Requires verification from official sources Transaction volumes, outstanding liabilities, consumer complaints, other metrics as required

Virtual Currency Regulation

The NCCOB has stated that virtual currency regulation is already within the scope of the North Carolina Money Transmitters Act. The regulatory approach is to clarify NCCOB's regulatory position regarding virtual currencies rather than enacting entirely new regulations.

Definition and Scope

Under N.C.G.S. § 53-208.42, "money transmitter" definition includes entities that maintain control of virtual currency on behalf of others. This brings within regulatory scope:

• Virtual Currency Transmitters: Entities receiving virtual currency for transmission to third parties
• Virtual Currency Custodians: Entities holding customer virtual currency balances
• Virtual Currency Exchangers: Entities arranging buy/sell transactions with customer fund involvement

Requires verification from official sources An "exchanger" that sells its own inventory of virtual currency is generally NOT considered a money transmitter. However, an exchanger that holds customer funds while arranging satisfactory buy/sell orders with a third party IS subject to money transmitter licensing.

Licensing Requirements for Virtual Currency Activities

Any entity engaged in virtual currency transmission or custody requires:

• Full money transmitter license from NCCOB
• Minimum net worth $250,000
• Minimum $150,000 surety bond
• NMLS registration and maintenance
• Compliance with all examination and reporting requirements

Fintech and Innovation

Requires verification from official sources The NCCOB maintains a pragmatic regulatory approach toward financial technology and emerging payment innovations while maintaining primary focus on consumer protection and statutory compliance. Specific NCCOB positions on blockchain technology, stablecoins, decentralized finance (DeFi), and other fintech developments not yet formally documented in publicly available sources.

Note: In 2015, North Carolina exempted select bitcoin businesses from money transmitter regulation where activities fell outside the statutory definition; however, current regulatory position reflects broad interpretation of virtual currency transmission.

Payments and Money Movement Relevance

The North Carolina Office of the Commissioner of Banks (NCCOB) has the following relevance to payments and money movement in United States:

Payment Systems Governed or Overseen

The North Carolina Office of the Commissioner of Banks (NCCOB) 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)

The NCCOB participates in the Nationwide Multistate Licensing System & Registry (NMLS), which provides:

• Centralized application and licensing platform across participating states
• Uniform reporting and examination coordination
• Reciprocal oversight and information sharing
• Interstate license reciprocity where applicable

Interstate Agreements and Cooperation

The NCCOB:

• Participates in the Conference of State Bank Supervisors (CSBS)
• Coordinates with federal regulators including FinCEN, OCC, and Federal Reserve
• Maintains bilateral coordination agreements with other state banking regulators
• Coordinates with state attorneys general on enforcement matters
• Requires verification from official sources May enter into specific interstate agreements on examination delegation and regulatory cooperation

Federal Coordination

• Money Services Business Registration: Licensed MT licensees may be subject to FinCEN Money Services Business (MSB) registration requirements
• Bank Secrecy Act Compliance: NCCOB enforcement incorporates BSA/AML compliance expectations
• Federal Reserve Coordination: State banks also regulated by Federal Reserve; NCCOB coordinates on dual-regulated institutions

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Primary NCCOB Contacts

Office of the Commissioner of Banks

Mailing Address: 4309 Mail Service Center, Raleigh, NC 27699-4309

Main Phone: 919-733-3016

Toll-Free: 1-800-874-9791

Fax: 919-733-6918

Website: https://nccob.nc.gov

Money Transmitter Licensing Contact

Email: [email protected]

Phone: 919-733-3016

Hours: Requires verification from official sources Business hours, M-F

Commissioner

Katherine M.R. Bosken, Commissioner of Banks

Term: August 31, 2021 – March 31, 2027 (reconfirmed March 23, 2023)

Key NCCOB Resources

• Money Transmitter Licensing Information: https://nccob.nc.gov/financial-institutions/money-transmitters/money-transmitters-licensing-information
• Money Transmitter FAQ: https://nccob.nc.gov/financial-institutions/money-transmitters/money-transmitter-frequently-asked-questions
• Forms and Fees: https://nccob.nc.gov/financial-institutions/money-transmitters/money-transmitter-forms-and-fees
• NMLS Registration: https://www.nmlsconsumeraccess.org/
• Regulated Institutions Directory: https://nccob.nc.gov/financial-institutions/banks-trusts/regulated-institutions

Statutory References

• Primary Statute: N.C. General Statutes Chapter 53, Article 16B (Money Transmitters Act)
• Regulatory Authority Provisions: N.C.G.S. § 53-208.41 et seq.
• Full Statute Text: https://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_53/Article_16B.pdf
• Justia Legal Reference: https://law.justia.com/codes/north-carolina/chapter-53/article-16b/

Notes on Naming and Language