Money Transfer

Money Transmitter Licensing

Money Transmitter Licensing


As stated in Section 641(1) of the Banking Law, “No person shall engage in the business of selling or issuing checks, or engage in the business of receiving money for transmission or transmitting the same, without a license therefor obtained from the superintendent as provided in this article, nor shall any person engage in such business as an agent, except as an agent of a licensee or as agent of a payee….”

For Money Transmitter licensing requirements see Article 13-B of the Banking Law (Sections 640 to 652-b), and Superintendent's Regulations Parts 406, 416, 417 and 300.

Application and License Management

DFS allows Money Transmitters to use the Nationwide Multistate Licensing System and Registry (NMLS) to manage license applications and ongoing regulation. DFS also utilizes the NMLS Uniform Authorized Agent Reporting (UAAR) functionality to fulfill agent reporting requirements.

DFS uses the Nationwide Multistate Licensing System and Registry (NMLS) to manage the Money Transmitter License.

Access to NMLS

NMLS is a secure web-based system created by state regulators to provide efficiencies in the processing of state licenses and improve supervision of state-regulated industries.

To access NMLS for the first time, you must complete a Company Account Request Form and identify a Primary Account Administrator and a Secondary Account Administrator. This form can be submitted online through the NMLS website in the Getting Started section. This form needs to be submitted only once per company, regardless of the number of NMLS participating states in which you are licensed.

Within three days of completing and submitting the Company Account Request Form, the Primary Account Administrator will receive NMLS login information. The Primary Account Administrator will have full rights to access the system, submit information to this agency and other participating state regulators, and set up other company users in the system. Instructions and tutorials on how to access and use the system are also available in the NMLS Resource Center.

Note: If your company already has a record in NMLS, you can omit this step.

Managing Your License on NMLS

Each company holding a DFS Money Transmitter License who wishes to manage their license on NMLS must create a company record in the system. To gain access to NMLS, the applicant must submit a form requesting an NMLS account.

Current New York State Money Transmitters may transition their licenses to NMLS. See the DFS Money Transmitter Transition Checklist for more information.

Submitting a Complete Application

To submit an application and ensure your application is received, acknowledged as complete, and processed, please follow the instructions on the DFS Money Transmitter Checklists. No application shall be deemed to be complete until the Department has received all required information, documents, and fees.

In the process of reviewing and considering the application, DFS may request additional information and supporting documents.

In the application process, an NMLS Identification Number will be assigned to your application. Please maintain a record of this NMLS Identification Number, as it will be used as your application reference number throughout the remainder of the application process. The applicant’s NMLS Identification Number must be included on every hard-copy document submitted to the Department.

Note: If the applicant has already submitted Forms MU1 and MU2 through NMLS for another state, the applicant does not need to re-enter the company record into NMLS. However, the applicant is required to provide jurisdiction-specific information to support its New York State application.

Annual Reporting

The Annual Report should be prepared by qualified persons and submitted within 120 days following the close of the calendar year January 1 to December 31, 2023.

Reporting Change in Certain Individuals

Pursuant to the following sections of the New York Banking Law (BL) and Superintendent’s Regulations (SR), licensees of the Department of Financial Services (DFS) are required to notify the Superintendent of changes in certain individuals, within stipulated time frames:

Money Transmitters:  BL 641, 642 and 652-a; and SR 406.11

These requirements are for changes in certain individuals of licensees whose licenses are not managed on NMLS. For those managed on NMLS, visit the NMLS section website for New York State and navigate to Company Licenses and Amendment under the pertinent industry type, and look under Change in Control on the Amendment Checklist.

Included Individuals

Members of the governing board such as directors, trustees, and LLC members

Officers (at a minimum Chief Executive Officer, President, Chief Financial Officer, Chief Compliance Officer, and Chief Operations Officer, and any other officers deemed necessary by DFS)

Documentary requirements for Each Included Individual Being Added

Documentary requirements for Each Included Individual Being Removed:

Notification on the licensee's letterhead signed by an authorized officer containing the following:

  • Name and title of the individual being removed
  • Reason of the removal
  • Effective date of the removal
  • New title/position, if any

Where To Submit?

For matters related to Budget Planners, Check Cashers, Licensed Lenders, Money Transmitters, Premium Finance Agencies, and Sales Finance Companies, submit the documents as directed by the DFS Portfolio Manager assigned to your institution.

For matters related to Virtual Currency, submit documents via email to [email protected].

*Background Investigation Reports are usually required only for individuals of licensed check cashers and money transmitters.  However, Background Investigation Reports may also be required for other officers, directors, stockholders, owners, and control persons of any licensee as determined by the Superintendent in her sole discretion.


The examination focuses on compliance with applicable state and federal laws and regulations and areas deemed likely to affect the safety and soundness of the licensee.

The Department of Financial Services assigns licensed money transmitters a FILMS rating based on an assessment of financial condition, internal controls and auditing, legal and regulatory compliance, management, and systems and technology.  The ratings range from “1” (Strong) to “5” (Unsatisfactory). 

Licensees with a FILMS rating of "4" (Marginal) or “5” (Unsatisfactory) or severe violations/deficiencies may be subject to regulatory actions such as monetary fines, and license suspension and revocation.

Details on the evaluation of the FILMS components are as follows:

Financial Condition:  This evaluation considers balance sheet composition including the level of permissible investments or assets to cover outstanding payment instruments; the level and quality of capital to absorb losses or to support growth; the quantity and quality of earnings including trends and stability; prospects and plans for growth, as well as past experience in managing growth; and access to other sources of capital including support provided by an affiliate or parent company.

Internal Controls and Auditing:  Internal controls and auditing are evaluated based upon the effectiveness of accounting, financial, operation, and systems controls, inclusive of agent oversight.  The assessment considers the extent of adherence to established policies and procedures; the independence, frequency, scope, and adequacy of the internal and external audit functions (including risk assessment) relative to the size and risk profile of the licensee; the severity of internal control and audit exceptions; the extent to which internal control and audit exceptions are tracked and resolved in a timely manner; the adequacy of management information reports; and whether the system of controls is reviewed to keep pace with changes in the licensee’s business plan.

Legal and Regulatory Compliance: This evaluation is based upon the level of adherence to applicable state and federal laws and regulations including any supervisory follow-up actions; the effectiveness of the written compliance program including policies and procedures; the ability to submit regulatory reports in a timely and accurate manner; and management’s ability to identify and correct compliance issues in a timely manner.

Management: The rating is based upon, but not limited to the following: the overall performance of the licensee; the capability of the governing board and management in their respective roles to identify, measure and monitor the risks of a licensee’s activities; management depth and succession; and responsiveness to recommendations from auditors and supervisory authorities.

Systems and Technology: The evaluation is based upon assessments of the following four critical components: IT Audit – evaluates the quality of the entire IT auditing process (including risk assessment), internal and external in terms of management and the external auditor’s ability to effectively identify, monitor and test internal controls over information systems; Management – evaluates the extent to which management effectively monitors and controls the risks inherent in information systems, including, but not limited to, resources employed and disaster recovery/business continuity planning and testing; Development and Acquisitions – addresses the adequacy of the licensee’s systems development methodology and related risk management practices for the acquisition and development of IT; Support and Delivery – measures the licensee’s ability to provide reliable and secure quality information systems services effectively and efficiently in-house and through service providers.

Common Forms


More information about NMLS can be found in the NMLS Resource Center.

Call DFS at (212) 709-5507 with DFS application and filing questions.