Overview
The State Board of Financial Institutions (BOFI) is the primary financial regulatory body for South Carolina, serving to preserve a sound financial community and protect the borrowing public. The Board operates through two divisions: the Banking Division (overseen by Commissioner of Banking Kathy L. Bickham) and the Consumer Finance Division (overseen by Commissioner of Consumer Finance Ronald R. Bodvake).
CRITICAL CLARIFICATION: While the BOFI oversees mortgage lending, consumer finance, and banking regulations, money transmission licensing in South Carolina is handled by the South Carolina Attorney General's Money Services Division, not BOFI. This distinction is essential for entities seeking money transmitter or currency exchange licenses. The Board of Financial Institutions was historically involved in money services regulation but this function transferred to the Attorney General's office.
The Board is chaired by Curtis M. Loftis, Jr., who serves as State Treasurer and ex officio member, with ten additional members appointed by the Governor with advice and consent of the Senate.
Basic Identity
| Field | Value |
|---|---|
| Official Name (English) | South Carolina Board of Financial Institutions |
| Official Name (Local Language) | South Carolina Board of Financial Institutions |
| Acronym | [Not applicable] |
| Country | United States |
| Jurisdiction Level | State |
| Official Website | https://www.scag.gov/inside-the-office/legal-services-division/money-services/submit-a-money-transmitters-complaint/](https://www.scag.gov/inside-the-office/legal-services-division/money-services/submit-a-money-transmitters-complaint/ |
| 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
Examination Authority
The Commissioner (South Carolina Attorney General) is authorized to:
- Conduct examinations or investigations of licensees and their authorized delegates
- Take independent action authorized by statute, rule, or order
- Conduct examinations as reasonably necessary to administer and enforce the law
Examination Costs
Licensees bear the reasonable cost of examinations conducted by the Commissioner.
Supervision Framework
Supervisory activities include:
- Regular examination of licensee operations
- Review of authorized delegate activities
- Monitoring of financial condition and net worth compliance
- Assessment of anti-money laundering and BSA/AML compliance
- Evaluation of consumer protection measures
- Review of complaint handling and dispute resolution
Multistate Coordination
South Carolina participates in multistate supervisory processes through:
- Conference of State Bank Supervisors
- Money Transmitter Regulators Association
The Commissioner is authorized to:
- Cooperate and coordinate with other state and federal regulators
- Share information with regulatory partners
- Enter into written cooperation, coordination, and information-sharing agreements
- Participate in coordinated multistate examination and supervision programs
Statutory Consumer Protections
Money services businesses are required to:
- Comply with all applicable anti-money laundering (AML) and Know Your Customer (KYC) requirements
- Maintain required records per federal regulations (Title 31 CFR Chapter X)
- Implement consumer complaint procedures
- Provide clear disclosure of fees and terms to consumers
- Maintain segregated funds for stored value holders (if applicable)
Complaint Procedures
Consumers may lodge complaints with the South Carolina Attorney General's Money Services Division regarding:
- Unauthorized money transmission
- Loss or mishandling of consumer funds
- Deceptive or fraudulent practices
- Violation of service agreements
- Failure to process transactions
Filing Complaint: https://www.scag.gov/inside-the-office/legal-services-division/money-services/submit-a-money-transmitters-complaint/
Contact: [email protected] | (803) 734-1221
Disclosures and Transparency
Licensees must provide consumers with:
- Clear fee schedules
- Exchange rates (if applicable)
- Transaction processing timeframes
- Disclosures regarding authorized delegates
- Information on complaint procedures
Regulatory Powers
Cease and Desist Authority
The Commissioner may issue cease and desist orders against licensees engaged in:
- Unauthorized money transmission activities
- Violations of money services laws and regulations
- Unsafe or unsound practices
- Violations of net worth or security requirements
Penalties and Sanctions
Civil Penalties:
- Fines for violations of the South Carolina Uniform Money Services Act
- Amount and structure [UNVERIFIED - consult statute § 35-11-900 et seq.]
License Actions:
- Suspension of license
- Revocation of license
- Denial of license renewal
- Imposition of conditions on continued operation
Violation of Key Requirements
Major violations may include:
- Failure to maintain net worth requirements
- Inadequate surety bond or security
- Unauthorized money transmission activities
- False statements on license application
- Failure to maintain required records
- Violations of anti-money laundering obligations
- Unsafe or unsound business practices
Complaint Authority
The Attorney General's Money Services Division receives and investigates consumer complaints regarding money transmitters. Public complaint submission available at: https://www.scag.gov/inside-the-office/legal-services-division/money-services/submit-a-money-transmitters-complaint/
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
Governing Statutes
Money Transmission Regulation:
- South Carolina Uniform Money Services Act, S.C. Code Ann. § 35-11-100 et seq. (formerly Money Services Oversight and Illicit Finance Abatement Act)
- Money Transmission Modernization Act (MTMA): Effective July 2, 2024, South Carolina substantially adopted the MTMA model law created by industry and state experts in 2021
- South Carolina Anti-Money Laundering Act, S.C. Code Ann. § 35-11 (Title 35, Chapter 11)
Banking and Consumer Finance Regulation:
- S.C. Code Ann. § 34-1 (State Board of Financial Institutions)
- S.C. Code Title 34 (Banking, Financial Institutions and Money)
Regulatory Structure Requires verification from official sources
The South Carolina Attorney General serves as the Commissioner with authority over money services businesses. The AG's Money Services Division is the licensing and supervisory body, while BOFI maintains jurisdiction over:
- Bank licensing and supervision
- Mortgage lender and broker licensing
- Consumer finance licensure
- Trust company operations
Licensing and Authorization Relevance
Licensing Authority
Issuing Agency: South Carolina Attorney General's Money Services Division (not BOFI)
License Types
The Money Services Division issues two license categories:
- Money Transmitter License
- Required for entities engaging in the business of money transmission
- Includes selling or issuing payment instruments
- Includes receiving money or monetary value for transmission
- Includes stored value issuance
- Currency Exchange License
- Required for entities engaging in currency exchange
- Applies when currency exchange represents ≥5% of total revenues
Application Requirements
Applicants must provide:
- Legal name, residential and business addresses
- Any fictitious or trade names
- Criminal convictions in preceding 10 years
- Material litigation history (10-year lookback)
- Description of money services previously provided
- Description of money services sought to be provided
- List of proposed authorized delegates and locations in South Carolina
- List of other states where applicant holds licenses
- NMLS registration and licensing information
NMLS Registration
All money service businesses must complete applications through the Nationwide Multi-State Licensing System (NMLS) at https://www.nmlsonline.org/.
NMLS File Number: [UNVERIFIED - Contact AG Money Services Division]
Net Worth Requirement
Minimum Net Worth: $250,000 (ongoing requirement for licensed entities)
Licensees must maintain sufficient permissible investments to satisfy net worth requirements.
Surety Bond / Security Requirements
Money transmitters are required to maintain security in one of the following forms:
- Surety bond
- Letter of credit
- Other similar security instruments
Security Amount:
The greater of:
- Base: $100,000
- Or: 100% of licensee's average daily money transmission liability in South Carolina (calculated for most recently completed calendar quarter)
- Maximum cap: $500,000
General Bonding (Alternative Framework): [UNVERIFIED - May apply to certain categories]
- $50,000 base bond
- Plus $10,000 for each location
- Maximum: $250,000
Fees
Annual License Renewal Fees: Applicable (specific amounts [UNVERIFIED - consult AG Money Services Division])
Virtual Currency Definition
Per S.C. Code Ann. § 35-11-105:
Virtual Currency is defined as any type of digital representation of value that:
- Is used as a medium of exchange, unit of account, or store of value
- Is not recognized as legal tender by the United States government
Virtual Currency Regulatory Treatment
South Carolina's Position: Virtual currencies alone are NOT recognized as monetary value for regulatory purposes.
Exception: To the extent that virtual currency transactions also involve the transfer of fiat currency, they MAY be subject to money transmission regulation under the Uniform Money Services Act.
Practical Application:
- Entities facilitating fiat-to-virtual currency conversion: Subject to money transmitter licensing
- Entities facilitating virtual currency-to-fiat conversion: Subject to money transmitter licensing
- Entities facilitating pure virtual currency trading (no fiat component): Generally NOT subject to money transmitter licensing [UNVERIFIED - seek AG guidance]
Blockchain and Fintech Legislation
South Carolina has enacted supporting blockchain legislation:
- SC Blockchain Industry Empowerment Act of 2021 (multiple bills including 2019-2020 Bill 4351)
- Cryptocurrency Bills (2025-2026): Bill 163 pending regarding cryptocurrency regulation [UNVERIFIED - monitor legislative status]
Emerging Technology Approach
South Carolina's regulatory approach emphasizes:
- Technology neutrality where possible
- Alignment with MTMA principles for innovation
- Coordination with federal regulators on emerging technologies
- Flexibility in regulatory interpretation pending legislative clarity
Payments and Money Movement Relevance
The South Carolina Board of Financial Institutions 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 South Carolina Board of Financial Institutions 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
Multistate Participation
South Carolina's Money Services Division participates in:
- Conference of State Bank Supervisors (CSBS)
- Money Transmitter Regulators Association (MTRA)
- Multistate licensing through NMLS platform
- Coordinated examination processes
Information Sharing
The Commissioner is authorized to enter into agreements for:
- Sharing examination information with other states
- Cooperative enforcement actions
- Joint supervision of multistate transmitters
- Exchange of intelligence regarding violations and risk factors
Reciprocal Recognition
Entities licensed in other states:
- Must still obtain South Carolina license to operate in-state
- May reference other state licenses in application (helpful for approval timing)
- Must comply with all South Carolina net worth and security requirements
- Subject to South Carolina examination authority
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
South Carolina Attorney General - Money Services Division
Primary Contact:
- Address: Rembert Dennis Building, 1000 Assembly Street, Room 519, Columbia, SC 29201
- Mailing Address: PO Box 11549, Columbia, SC 29211-1549
- Phone: (803) 734-1221
- Email: [email protected]
- Website: https://www.scag.gov/inside-the-office/legal-services-division/money-services/
South Carolina Board of Financial Institutions (BOFI)
For Non-Money Transmission Matters (Banking, Mortgage, Consumer Finance):
- Address: Rembert Dennis Building, 1000 Assembly Street, Columbia, SC 29201
- Phone: (803) 734-2020
- Email: [email protected]
- Website: https://bofi.sc.gov/
- About: https://bofi.sc.gov/about-us
- Board Members: https://bofi.sc.gov/board-members
Key Leadership
Board of Financial Institutions:
- Chairman: Curtis M. Loftis, Jr. (State Treasurer, ex officio)
- Commissioner of Banking: Kathy L. Bickham
- Commissioner of Consumer Finance: Ronald R. Bodvake
Attorney General:
- Alan Wilson (Attorney General) oversees Money Services Division
NMLS Portal
- NMLS Website: https://www.nmlsonline.org/
- Knowledge Center: https://mortgage.nationwidelicensingsystem.org/knowledge/
- Money Services Guidance: NMLS Money Transmitter Requirements
Statute and Regulatory References
- South Carolina Uniform Money Services Act: S.C. Code Ann. § 35-11-100 et seq.
- South Carolina Code Title 35, Chapter 11: https://law.justia.com/codes/south-carolina/title-35/chapter-11/
- Money Services FAQs: https://www.scag.gov/inside-the-office/legal-services-division/money-services/money-services-faqs/
Notes on Naming and Language
| Field | Value |
|---|---|
| Preferred English Rendering | South Carolina Board of Financial Institutions |
| Official Local-Language Rendering | South Carolina Board of Financial Institutions |
| Official Website Language(s) | English |