MSB Frequently Asked Questions

To ensure that the citizens of Georgia have access to wide array of properly operated money service providers, the MSB section of the Non-Depository Financial Institutions Division is responsible for supervising those who are licensed (or who should be licensed) to do business in the Georgia as a check casher or money transmitter.   In regards to MSBs covered by Georgia law, the Department is charged with the supervision and examination of their business affairs to ensure that they operate in a manner consistent with state law, and also for the protection of the interests of consumers who are served by these entities.

Certain categories of MSBs must apply to the Department and meet certain licensing standards before they may legally offer their services to the public.   Monetary fines and civil sanctions can be levied if a person or company is discovered to be operating in Georgia without being properly licensed.

After obtaining a license, periodic examinations of the licensee's operations are performed to monitor operating standards to assure compliance with the provisions of Title 7 of the Official Code of Georgia (O.C.G.A.) Article 4 or 4a.

Bad credit will make your application very difficult to approve. At the very least, you must settle charged-off accounts, judgments and outstanding tax liens. Those who are delinquent on child support payments must remedy this problem before they can be licensed. If you have collection accounts, you must provide proof that you have setup a payment plan and have made at least three payments to those accounts according to the payment plans.

Criminal activity increases the difficulty of making a favorable finding on an application. While minor traffic offenses will not affect your chances for a license, convicted felons who have not been PARDONED (not just paroled) or who have not sought and obtained/documented the remedies provided for in O.C.G.A. Section 7-1-684 for money transmitters and O.C.G.A. Section 7-1-703 for check cashers, cannot be licensed. The Department verifies the criminal background of each applicant for a license. It is very important to provide honest answers in the application. Omissions regarding arrests are deemed to be a serious falsification of the application and can lead to denial regardless of the nature or outcome of the arrest.

No.  Entities that serve as authorized agents for money transmitters are allowed to engage in money transmission without obtaining a separate license as long as they do not engage in money transmission outside of the scope of their contract with the principal money transmitter. Therefore, any authorized agent which starts to offer money transmission on its own behalf will be required to obtain its own license.

A surety bond is a three-party instrument between a surety (insurance company), the licensee, and the Department. The agreement binds the licensee to comply with the terms and conditions of the laws and regulations concerning the issuance of their license. If the licensee is unable to successfully meet those requirements, the surety assumes certain monetary obligations required for performance under that surety bond for the licensee, and ensures that the obligations are met. Such obligations may be those owed to qualifying consumers, other creditors, or the Department.

Electronic Surety Bonds (ESB)

Licensees are required to meet all surety bond requirements by completing the electronic surety bond process. See the ESB Adoption Map and Table for more information.

The minimum surety bond for money transmitters is $250,000. 

The Department may require a licensee to provide additional coverage for the adequate protection of payment instrument holders if the average daily outstanding balances for money transmitters exceed the current bond amount, the average daily outstanding orders to transmit not yet paid for money transmitters exceed the current bond amount, or the Department determines that additional coverage is necessary in order to satisfy the department that the provisions of subsection (b) of Code Section 7-1-684 are fulfilled.

The Department assesses the licensee's quarterly outstandings to determine if high bond coverage is required; however, under no circumstances shall the additional bond coverage required by the Department exceed $2,000,000.

The requirement to register with FinCEN differs for each type of MSB. Refer to the definitions page on FinCEN's website for further information - https://www.fincen.gov/money-services-business-definition

Please note that certain MSBs under the federal definition may not need to be licensed with the Department.  For instance, a check casher that does not charge a fee is not required to be licensed with the Department.  However, a check casher would still need to register with FinCEN if they meet the activity threshold established by federal regulations (An activity threshold of greater than $1,000 per person per day in one or more transactions).

Each MSB is required by law to have an effective anti-money laundering (AML) compliance program.  An effective anti-money laundering program is one that is reasonably designed to prevent the MSB from being used to facilitate money laundering and the financing of terrorist activities.  The federal regulation requiring MSBs to develop and maintain an AML compliance program is contained in 31 CFR Chapter X § 1022.210.  Each program must be commensurate with the risks posed by the location, size, nature and volume of the financial services provided by the MSB.  

The Department has provided guidance  on its website to help you develop your policy. Please note that the document referenced on our website IS NOT a sample policy but a   guide only

Office of Foreign Asset Control (OFAC) – NOTE: MSBs must have a policy to follow regarding checking the list of Specially Designated Nationals as is required by the Patriot Act.  Refer to http://www.treasury.gov/about/organizational-structure/offices/Pages/Office-of-Foreign-Assets-Control.aspx

Yes.  The Department adopted the NMLS Money Services Businesses Call Report (MSBCR) functionality for submission of routine financial and transactional reporting requirements by Money Transmitter Licensees.  Learn more about the MSBCR requirements from the NMLS Resource Center at: https://mortgage.nationwidelicensingsystem.org/slr/common/Pages/MoneyServicesBusinessesCallReport.aspx.

Agent/office information must be uploaded via the Uniform Authorized Agent Report (UAAR). Even if you have no agents or changes to report, you must still file through the NMLS.  Learn more about the UAAR requirements from the NMLS Resource Center at https://mortgage.nationwidelicensingsystem.org/slr/common/Pages/UniformAuthorizedAgentDelegateReporting.aspx.

Money transmitter licensees must file both the MSBCR and the UAAR through the Nationwide Multistate Licensing System (NMLS) on a quarterly basis. All parts of the reporting requirement are due within 45 days of the quarter-end. 

Due quarterly, within 45 days of the end of every calendar quarter:

• Q1 data (January 1 – March 31) is due May 15
• Q2 data (April 1 – June 30) is due August 14
• Q3 data (July 1 – September 30) is due November 14
• Q4 data (October 1 – December 31) is due February 14

 

Previously, money transmitter licensees were required to file a Report of Outstandings for Money Transfers directly with the Department on a quarterly basis.  As of January 1, 2021, this report will only be filed once a year.  The report must be submitted within 45 days after the end of Q2 (August 14). 

A fillable PDF form available from the Department’s dbf.georgia.gov website must be completed by the licensee to satisfy the annual reporting requirement.  The need to maintain this document is driven by the need to obtain average daily outstandings during the year in order to determine the adequacy of the licensee’s surety bond. This information is not currently available in the MSB Call Report.

 

The form is found at: https://dbf.georgia.gov/document/document/yearly-report-money-transmitter-licensees 

 

Licensees that fail to file all reports by the deadline may be assessed a fine of $1,000 and may subject their Georgia license to revocation.

The Georgia Department of Banking and Finance considers the operator of a virtual currency kiosk (“VC kiosk"), which are often referred to as Bitcoin ATMs, BTMs, or cryptocurrency kiosks to be engaging in money transmission if its VC kiosks permit virtual currency to be deposited into the virtual wallet of a third party (i.e., a wallet that does not belong to the individual conducting the transaction at the VC kiosk). Therefore, the operator of any such VC kiosk in Georgia which allows or could be utilized to make deposits into third-party wallets, must apply for and obtain a money transmitter license unless the VC kiosk operator qualifies for one of the exemptions from licensure provided at O.C.G.A. § 7-1-682. Please note that even when a VC kiosk requires the consumer to personally confirm in some way that the virtual wallet being used in the transaction belongs to that particular consumer as part of its KYC/AML process (unless the VC kiosk operator can independently establish the identity of that wallet’s true owner and verify that the wallet does not belong to a third party), the operator of any such VC kiosk would still need to apply for and obtain a money transmitter license unless otherwise exempt from licensure.

However, any person that merely hosts VC kiosks at their place of business, but who otherwise is not responsible for procuring and/or transmitting the fiat currency or virtual currency reserves used for the VC kiosk transactions, typically would not be required to apply for a money transmitter license. More information on VC kiosk licensing can be found here  .