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Banking Interpretations

NYSBL  641

March 4, 2008 

[---]

Re: Licensed Money Transmitter

Dear [---]:

Your inquiry dated July 23, 2007 to Regina Stone, Deputy Superintendent of Banks of the State of New York, has been referred to me for response. First, I apologize for the delay in responding to you. In your letter, you request an opinion from the New York State Banking Department ("the Banking Department"), as to whether the company you represent, [---] ("Commonwealth") is required to be a licensed transmitter of money pursuant to Article 13-B of the New York Banking Law.

In your letter you explain that Commonwealth is a Rhode Island corporation headquartered in Providence, RI that provides foreign exchange services to small and mid-sized businesses throughout the United States. You also explain that Commonwealth does not have any offices, employees, agents or representatives in the State of New York.  You also attached a copy of your business model explaining that Commonwealth is a foreign exchange service business that does not maintain deposit accounts with any state bank save for Bank of Rhode Island.  The business model further explains that customer funds are received for deposit into accounts maintained by Commonwealth at Bank of Rhode Island or a national bank.  Commonwealth does not do business with retail customers.  Its business is solely involved with commercial business customers engaged in interstate and international transactions.

Based on your explanation that Commonwealth will not have any physical presence in New York the Banking Department is of the opinion that a money transmitter license, as contemplated under Article 13-B of the New York Banking Law, is not required for Commonwealth to perform the services as you described.

I trust that this has been responsive to your inquiry. If you have any further questions, please do not hesitate to contact me at
(212) 709-1674.

Very truly yours,

Megan Prendergast
Associate Attorney

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