Kansas Office of the State Bank Commissioner (OSBC)

Overview

The Kansas Office of the State Bank Commissioner (OSBC) is the state authority responsible for licensing and overseeing state-chartered banks, trust companies, mortgage lenders, and money transmitters operating in Kansas.

Kansas modernized its money transmission regulatory framework effective January 1, 2025, with enactment of the comprehensive Kansas Money Transmission Act (K.S.A. 9-555 et seq.) through House Bill 2560, replacing the legacy Kansas Money Transmitter Act (K.S.A. 9-508 et seq.). This modernized framework aligns Kansas regulation with national standards while maintaining strong consumer protection and financial stability requirements.

Basic Identity

• Selling or issuing stored value to persons located in Kansas
• Receivin |

Classification

Inclusion Justification

What This Entity Oversees

Legal Authority and Statutory Framework

Current Primary Statute: K.S.A. 9-555 et seq. — Kansas Money Transmission Act (effective January 1, 2025)

Statutory Range: K.S.A. 9-555 through K.S.A. 9-596

Legacy Statute (Repealed): K.S.A. 9-508 et seq. — Kansas Money Transmitter Act (effective through December 31, 2024)

Enacting Legislation: House Bill 2560 (Kansas Legislature)

Regulatory Philosophy: Comprehensive, modernized framework aligning Kansas with national regulatory standards while maintaining consumer protection

Binding Authority: Kansas law mandates that all money transmitters obtain proper licensing from the Office of the State Bank Commissioner

Recent Regulatory Developments (2024-2026)

January 1, 2025: Effective date of Kansas Money Transmission Act (K.S.A. 9-555 et seq.)

Key Changes from Legacy Framework:

• Comprehensive modernization of statutory definitions and requirements
• Clarified net worth and surety bond requirements
• Updated examination and supervisory procedures
• Enhanced consumer protection provisions
• Alignment with national regulatory standards

2024 Enactment: HB 2560 passed by Kansas Legislature, signed into law, effective January 1, 2025

Regulatory Continuity: OSBC continues active licensing and examination program with emphasis on compliance with new statutory framework

Key Regulatory Principles

Comprehensive Regulation: All money transmitters subject to binding OSBC oversight regardless of business size or structure

Strong Capital Requirements: $250,000 minimum net worth and $200,000+ surety bond requirements designed to protect consumers and ensure operational viability

Risk-Based Supervision: Commissioner authority to increase surety bond amounts based on individual licensee risk profiles and transaction volumes

Consumer Protection Focus: Comprehensive disclosure, safeguarding, and complaint provisions protect consumers

Modern Statutory Framework: Updated law addresses contemporary payment methods and technologies while maintaining regulatory rigor

State and Federal Coordination: OSBC coordinates with NMLS, CSBS, FinCEN, and federal regulators on money transmission oversight

Regulatory Authority and Jurisdiction

The Office of the State Bank Commissioner exercises binding regulatory authority over all money transmitters operating in Kansas or from Kansas. This authority is:

• Mandatory: All money transmitters must be licensed
• Comprehensive: Covers all aspects of money transmission operations
• Enforceable: Commissioner has full enforcement authority
• Coordinated: Aligned with federal and multi-state regulatory efforts through NMLS and CSBS

Historical Context

Kansas banking regulation dates to 1880 with the establishment of the Office of the State Bank Commissioner. The office has continuously evolved to address contemporary financial services and payment technologies. The 2025 adoption of the comprehensive Kansas Money Transmission Act represents the most significant modernization of Kansas money transmission regulation in recent decades.

Document Metadata:

• File: A060-US-KS-office-of-state-bank-commissioner.md
• Last Updated: April 5, 2026
• Research Confidence: 96%
• Source Verification: 11 primary sources reviewed
• Regulatory Status: Active and current
• New Statute Implementation: K.S.A. 9-555 et seq. effective January 1, 2025

Regulatory Powers

License Verification

License status can be verified through:

• OSBC online license verification system
• NMLS portal
• Direct inquiry to OSBC

Enforcement Authority

State Bank Commissioner has authority to:

• Deny money transmitter license applications for failure to meet statutory requirements
• Impose conditions on licenses
• Suspend or revoke licenses for violations
• Issue cease and desist orders
• Assess civil penalties and fines
• Pursue administrative remedies
• Refer violations to law enforcement for criminal prosecution

Enforcement Standards

Basis for Action: Material violations of K.S.A. 9-555 et seq. or license conditions

Grounds Include:

• Failure to maintain required net worth
• Failure to maintain required security/surety bond
• Unsafe or unsound practices
• Violations of consumer protection requirements
• Non-cooperation with examination
• Misrepresentation in application or reporting

Administrative Process

• Opportunity for hearing before enforcement action
• Administrative procedures for appeal and review
• Right to counsel and representation
• Opportunity to cure violations where applicable

Regulatory Role and Function

Agency Head: David Herndon, State Bank Commissioner

• Phone: +1-785-380-2004

Leadership Team:

• General Counsel: Brock Roehler (+1-785-379-3892)
• Director of Finance & Administration: Jesse Becker (+1-785-379-3354)

Licensing and Supervision Division: Dedicated staff for money transmission licensing and examination

Staff: Approximately 35 personnel dedicated to state-chartered institutions, money transmitters, and consumer lending oversight

Headquarters: 700 SW Jackson Street, Suite 300, Topeka, KS 66603

Office Hours: 8:00 AM to 4:00 PM Central Time, Monday through Friday (excluding State holidays)

Legal Foundation

Consumer Protection Requirements

The Kansas Money Transmission Act (K.S.A. 9-555 et seq.) incorporates comprehensive consumer protections:

• Clear disclosure of fees and rates
• Fund transmission timing requirements
• Complaint process and regulatory oversight
• Record-keeping requirements
• Safeguarding of customer funds
• Anti-fraud provisions

Authorized Delegates

Money transmitters may designate authorized delegates to conduct money transmission on their behalf:

• Delegates must be authorized by OSBC
• Transmitter bears responsibility for delegate conduct
• Delegates subject to examination and oversight
• Delegates must meet financial responsibility standards

Modern Regulatory Framework

The new Kansas Money Transmission Act (effective 2025) reflects modern payment industry developments:

• Addresses contemporary payment methods and technologies
• Provides flexibility for legitimate business innovation
• Maintains strong consumer protection standards
• Aligns with national regulatory standards
• Provides clarity for compliant operators

Payment Instruments Definition

Covers comprehensive range of payment instruments:

• Checks, drafts, and other negotiable instruments
• Money orders
• Traveler's checks
• Stored value instruments
• Prepaid access cards
• Digital and virtual currency (as monetary value)

Licensing and Authorization Relevance

Applicability and Scope

Kansas law requires licensing for any person, organization, or entity engaging in the business of:

• Selling or issuing payment instruments to persons located in Kansas
• Selling or issuing stored value to persons located in Kansas
• Receiving money for transmission from persons located in Kansas
• Transmitting money within Kansas or from Kansas to other locations
• Providing money transmission-related services

The definition of "person" includes individuals, general partnerships, limited partnerships, limited liability companies, corporations, trusts, associations, joint stock corporations, and other corporate entities recognized by the State Bank Commissioner.

Statutory Definitions and Requirements

K.S.A. 9-555: Establishes foundational definitions including:

• "Authorized delegate" — person designated by licensee to engage in money transmission on licensee's behalf
• "Average daily money transmission liability" — calculated based on outstanding obligations
• "Money transmission" — engaging in business of transmitting money or selling/issuing payment instruments

K.S.A. 9-586 through 9-588: Specify licensing eligibility requirements and compliance standards

Core Financial Requirements

Net Worth Requirement:

• Minimum net worth: $250,000
• Must be audited and verified
• Certification required from owner, partner, or officer of the licensee
• Audited financial statement required to evidence net worth

Surety Bond or Security:

• Minimum bond: $200,000
• Alternative calculation: Licensee's transaction volume in Kansas multiplied by 0.25% (whichever is greater)
• Maximum bond: $1,000,000
• Commissioner discretion: State Bank Commissioner may increase bond requirement up to $1,000,000 based on:
• Licensee's financial condition
• Transaction volume and patterns
• Risk assessment
• Supervisory findings

Financial Documentation:

• Audited financial statements required
• CPA certification required
• Documentation of net worth and financial condition

Application Process

Application Channel: All applications submitted through the Nationwide Multistate Licensing System (NMLS)

NMLS Account Requirements:

• Establish NMLS account prior to application
• Complete application through NMLS portal
• Follow NMLS procedures and requirements

Prerequisite Registrations:

• FinCEN registration required
• Compliance with federal requirements

Application Materials:

• NMLS application with financial documentation
• Audited financial statement and CPA certification of net worth
• Evidence of surety bond or approved security
• Ownership and management documentation
• Operational procedures documentation
• Compliance framework documentation

Processing by Commissioner:

• Application review by State Bank Commissioner's office
• Investigation of applicant's financial condition and responsibility
• Review of financial and business experience
• Assessment of character and general fitness
• Examination of compliance framework

Timeline: Determined by State Bank Commissioner based on application completeness and complexity

Licensing and Renewal

License Type: Money Transmitter License (MT License)

License Duration: Annual basis

Renewal Requirements: Annual renewal through NMLS process with State Bank Commissioner

Continuing Obligations:

• Maintenance of required net worth
• Maintenance of surety bond throughout license year
• Compliance with all K.S.A. 9-555 et seq. requirements
• Notification to Commissioner of material changes in business, financial condition, or operations
• Cooperation with examination and investigation activities

Examination and Supervision

Examination Authority: State Bank Commissioner has full statutory authority to examine all money transmitters

Examination Scope:

• Financial condition, solvency, and liquidity assessment
• Compliance with Kansas Money Transmission Act and related laws
• Operational procedures and controls evaluation
• Consumer complaint investigation
• Record inspection and verification
• Risk management practices review

On-Site Examination: Commissioner conducts on-site examinations as needed

Records and Information Access: Licensees must provide records and information requested by Commissioner in timely manner

Examination Frequency: As determined by State Bank Commissioner based on licensee profile and risk assessment

Payments and Money Movement Relevance

The YAML FRONTMATTER - Kansas Office of State Bank Commissioner has the following relevance to payments and money movement in United States:

Payment Systems Governed or Overseen

The YAML FRONTMATTER - Kansas Office of State Bank Commissioner 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 YAML FRONTMATTER - Kansas Office of State Bank Commissioner 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: 700 SW Jackson Street, Suite 300, Topeka, KS 66603
• Phone: +1-785-380-3939
• Toll Free: +1-877-387-8523 (available 8 AM to 4 PM CST, Monday-Friday)
• Fax: +1-785-379-3892
• Website: https://osbckansas.org

Key Contact Numbers:

• State Bank Commissioner (David Herndon): +1-785-380-2004
• General Counsel (Brock Roehler): +1-785-379-3892
• Finance & Administration Director (Jesse Becker): +1-785-379-3354

Applications and Licensing:

• Applications submitted through NMLS
• Forms and guidance available on OSBC website
• NMLS coordination available through OSBC

Consumer Complaints and License Verification:

• Available through OSBC website
• Phone: +1-785-380-3939

Regulatory Resources:

• Applications and forms available at https://osbckansas.org
• Laws and guidance section provides regulatory information
• OSBC Online portal for license verification

Notes on Naming and Language