Money Transmitters
Money Lenders
Mortgage Lenders
Mortgage Brokers
Mortgage Loan Originators
Money Transmitter Links
Money Transmitter Bond / Electronic Version
Persons engaged in the business of money transmission must obtain a license from the Division of Banking. Money transmission is defined as the sale or issuance of payment instruments or stored value or of receiving money or monetary value for transmission to a location within or outside the United States by any means, including wire, facsimile, or electronic transfer. A licensee may conduct business in South Dakota at one or more locations, or through one or more authorized delegates, or both, under a single license.
South Dakota Statutes, Chapter 51A-17 exempts certain entities from the licensing requirements including, but not limited to, authorized delegates of a licensee who have a contract with a licensee, the U.S. government, the U.S. Postal Service, the state or any political subdivision, banks, credit unions, savings associations and bank holding companies.
Requirements (All application material must be one-sided documents):
• $500 initial application fee. The fee is nonrefundable.
• $1,000 license fee. This fee will be refunded if the application is denied.
• Net Worth Qualifications - Each licensee shall have at all times have a net worth of not less than $100,000. Net worth shall be calculated in accordance with generally accepted accounting principles.
• Good Standing - Every corporate applicant must be in good standing in the state of its incorporation. All noncorporate applicants shall be registered or qualified to do business in South Dakota.
• Surety Bond - Each licensee must provide a surety bond or other similar security device acceptable to the director in the amount of $100,000.
• Statutory Trust - Each licensee must at all times possess permissible investments having an aggregate market value of not less than the aggregate face amount of all outstanding payment instruments sold by the licensee or reported as sold by an authorized delegate, to the extent the dollar volume exceeds the surety bond.
• Background Investigation - Each applicant for licensure under this Act, except publicly traded corporations and their subsidiaries, shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. The applicant shall pay for any fees charged for the cost of fingerprinting or the criminal background investigation.
Renewal (All application material must be one-sided documents):
• Licenses issued under Chapter 51A-17 expire annually on July 1.
• Renewal notices will be sent to licensees at the address on record in April of each year and will be due by June 1 of each year. Please contact the Division if you do not receive the renewal notice by May 1. A licensee that has not filed a renewal report or paid its renewal fee by June 1 shall have its license suspended immediately. The licensee then has thirty days after its license is suspended in which to file a renewal report and pay the renewal fee, plus one hundred dollars for each business day after suspension that the director does not receive the renewal report and fee. Any license not renewed prior to July 1 expires.
• Renewal Fee set by ARSD 20:07:21:02.
• An annual renewal report form will be posted on the website from April 1st to June 30th of each year. The report requirements include, but are not limited to the following:
1. A copy of the most recent audited consolidated annual financial statement, including balance sheets, statement of income or loss, statement of changes in shareholder's equity, and statement of changes in financial position.
2. The number of payment instruments sold in South Dakota, the dollar amount of those instruments, and the dollar amount of those instruments currently outstanding for the most recent quarter or March 31st of the current year.
3. A list of permissible investments.
4. A list of all locations in South Dakota at which licensed business is being conducted by either the licensee or its authorized delegate.
5. Any material changes to the previous application that have not been reported. Items to be reported include:
• Filing bankruptcy or reorganization
• Any revocation or suspension against the licensee by any state or governmental authority
• Any felony indictment or felony conviction of the licensee or any key officers or directors related to money transmission activities
• Any changes in control or controlling person
• Notification of authorized delegate(s) contract termination
Changes to the License:
• Name Change - Submit a letter explaining the name change to the Division, list the current name and the proposed name, include the license number, and attach legal documentation showing the name change (such as a marriage certificate or court document, or Certificate of Authority or Certificate of Assumed Name filed with the South Dakota Secretary of State).
• Address Change – Submit a letter of explanation to the Division, list the current address and the proposed address, and include the license number. If the address change affects the physical address printed on the license certificate, attach the current license for amendment.
• Change of Control - A licensee must give the director written notice of a proposed change of control within fifteen days after learning of the proposed change of control and request approval of the acquisition. That notice must include a written statement giving the full name, title, and percent of ownership of all current owners and the full name, title, and percent of ownership after the proposed change. Any new owners or control persons must complete and submit a Biographical Statement and Consent Form. After review of a request for approval, the director may require the licensee to provide additional information concerning the proposed persons in control of the licensee.
• $1,000 license fee. This fee will be refunded if the application is denied.
• Net Worth Qualifications - Each licensee shall have at all times have a net worth of not less than $100,000. Net worth shall be calculated in accordance with generally accepted accounting principles.
• Good Standing - Every corporate applicant must be in good standing in the state of its incorporation. All noncorporate applicants shall be registered or qualified to do business in South Dakota.
• Surety Bond - Each licensee must provide a surety bond or other similar security device acceptable to the director in the amount of $100,000.
• Statutory Trust - Each licensee must at all times possess permissible investments having an aggregate market value of not less than the aggregate face amount of all outstanding payment instruments sold by the licensee or reported as sold by an authorized delegate, to the extent the dollar volume exceeds the surety bond.
• Background Investigation - Each applicant for licensure under this Act, except publicly traded corporations and their subsidiaries, shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. The applicant shall pay for any fees charged for the cost of fingerprinting or the criminal background investigation.
Renewal (All application material must be one-sided documents):
• Licenses issued under Chapter 51A-17 expire annually on July 1.
• Renewal notices will be sent to licensees at the address on record in April of each year and will be due by June 1 of each year. Please contact the Division if you do not receive the renewal notice by May 1. A licensee that has not filed a renewal report or paid its renewal fee by June 1 shall have its license suspended immediately. The licensee then has thirty days after its license is suspended in which to file a renewal report and pay the renewal fee, plus one hundred dollars for each business day after suspension that the director does not receive the renewal report and fee. Any license not renewed prior to July 1 expires.
• Renewal Fee set by ARSD 20:07:21:02.
• An annual renewal report form will be posted on the website from April 1st to June 30th of each year. The report requirements include, but are not limited to the following:
1. A copy of the most recent audited consolidated annual financial statement, including balance sheets, statement of income or loss, statement of changes in shareholder's equity, and statement of changes in financial position.
2. The number of payment instruments sold in South Dakota, the dollar amount of those instruments, and the dollar amount of those instruments currently outstanding for the most recent quarter or March 31st of the current year.
3. A list of permissible investments.
4. A list of all locations in South Dakota at which licensed business is being conducted by either the licensee or its authorized delegate.
5. Any material changes to the previous application that have not been reported. Items to be reported include:
• Filing bankruptcy or reorganization
• Any revocation or suspension against the licensee by any state or governmental authority
• Any felony indictment or felony conviction of the licensee or any key officers or directors related to money transmission activities
• Any changes in control or controlling person
• Notification of authorized delegate(s) contract termination
Changes to the License:
• Name Change - Submit a letter explaining the name change to the Division, list the current name and the proposed name, include the license number, and attach legal documentation showing the name change (such as a marriage certificate or court document, or Certificate of Authority or Certificate of Assumed Name filed with the South Dakota Secretary of State).
• Address Change – Submit a letter of explanation to the Division, list the current address and the proposed address, and include the license number. If the address change affects the physical address printed on the license certificate, attach the current license for amendment.
• Change of Control - A licensee must give the director written notice of a proposed change of control within fifteen days after learning of the proposed change of control and request approval of the acquisition. That notice must include a written statement giving the full name, title, and percent of ownership of all current owners and the full name, title, and percent of ownership after the proposed change. Any new owners or control persons must complete and submit a Biographical Statement and Consent Form. After review of a request for approval, the director may require the licensee to provide additional information concerning the proposed persons in control of the licensee.