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Can I obtain a money transmitter license in Arizona? What are the requirements?

Yes, you can obtain a money transmitter license in Arizona. The requirements for obtaining a license are outlined in Arizona Revised Statutes (AZRS) 6-1209 and 6-1211.

Requirements for obtaining a money transmitter license in Arizona

To obtain a money transmitter license in Arizona, you must:

  1. Complete an application form prescribed by the director and pay all applicable nonrefundable fees as prescribed in section 6-126 [1.5].
  2. Provide the legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting the applicant's business [1.5].
  3. Provide a list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the ten-year period preceding the submission of the application [1.5].
  4. Provide a description of any money transmission previously provided by the applicant and the money transmission that the applicant seeks to provide in this state [1.5].
  5. Provide a list of the applicant's proposed authorized delegates and the locations in this state where the applicant and its authorized delegates propose to engage in money transmission [1.5].
  6. Provide a list of other states in which the applicant is licensed to engage in money transmission and any license revocations or suspensions or other disciplinary action taken against the applicant in another state [1.5].
  7. Provide information concerning any bankruptcy or receivership proceedings affecting the licensee or a person in control of the licensee [1.5].
  8. Provide a sample form of a contract for authorized delegates, if applicable [1.5].
  9. Provide a sample form of a payment instrument or stored value, as applicable [1.5].
  10. Provide the name and address of any federally insured depository financial institution through which the applicant plans to conduct money transmission [1.5].
  11. Provide any other information the director reasonably requires with respect to the applicant [1.5].

In addition to the above requirements, if the applicant is a corporation, limited liability company, partnership or other legal entity, the applicant shall also provide the following [1.5]:

  1. The date of the applicant's incorporation or formation and the state or country of incorporation or formation.
  2. If applicable, a certificate of good standing from the state or country in which the applicant is incorporated or formed.
  3. A brief description of the structure or organization of the applicant, including any parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly traded.
  4. The legal name, any fictitious or trade name, all business and residential addresses and the employment, as applicable, in the ten-year period immediately preceding the submission of the application of each key individual and person in control of the applicant.
  5. A list of any criminal convictions and material litigation in which a person in control of the applicant that is not an individual has been involved in the ten-year period immediately preceding the submission of the application.
  6. A copy of audited financial statements of the applicant for the most recent fiscal year and for the two-year period immediately preceding the submission of the application or, if determined to be acceptable to the director, unaudited financial statements for the most recent fiscal year or other period acceptable to the director.
  7. A copy of unaudited financial statements of the applicant for the most recent fiscal quarter.
  8. If the applicant is a publicly traded corporation, a copy of the most recent report filed with the United States securities and exchange commission pursuant to 15 United States Code section 78m.
  9. If the applicant is a wholly owned subsidiary of: a. A corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation's most recent report filed pursuant to 15 United States Code section 78m. b. A corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States.
  10. The name and address of the applicant's registered agent in this state.
  11. Any other information the director reasonably requires.

Additionally, to obtain a money transmitter license in Arizona, you must meet certain eligibility requirements as outlined in AZAC Title 19, Chapter 1, Article 2, Section 1 [2.1]. For example, if an individual applies for a license, the individual must be a citizen of the United States or a legal resident alien and a bona fide resident of Arizona. If a corporation or limited liability company applies for a license, the corporation or limited liability company must be qualified to do business in Arizona and hold the license through an agent who is an individual that meets the criteria in subsection (A)(1) [2.1].

Furthermore, each applicant for a license shall have and each licensee shall maintain at all times a net worth of at least one hundred thousand dollars, calculated according to generally accepted accounting principles [1.3].

License issuance

When an application for an original license under this article includes all of the required items and addresses, the application is complete and the director shall approve or deny the application within one hundred twenty days after the completion date [1.2]. If the application is not approved or denied within one hundred twenty days after the completion date, the application is approved, the license takes effect as of the first business day after expiration of the one hundred twenty-day period, and the director for good cause may extend the application period [1.2].

License maintenance

If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license pursuant to this article, the director may suspend or revoke the licensee's license [1.1].

License for agents; requirements

If you operate from a location in Arizona and solicit students on behalf of a professional driver training school that is located in this state or any other state, the director may require you to obtain a license in the manner and form prescribed by the director [3.1]. The director shall adopt rules that state the requirements for an agent license, including requirements concerning truthfulness and the adequacy of information provided by the agent to members of the public regarding the professional driver training school that the agent represents [3.1].

Licensure; prohibition; applicability

A person may not engage in the business of money transmission or advertise, solicit or hold itself out as providing money transmission unless the person is licensed under this article [1.4]. However, this does not apply to a person that is an authorized delegate of a person licensed under this article that is acting within the scope of authority conferred by a written contract with the licensee, or a person that is exempt pursuant to section 6-1202 and does not engage in money transmission outside the scope of the exemption [1.4]. A license issued under section 6-1211 is not transferable or assignable [1.1].

Therefore, to obtain a money transmitter license in Arizona, you must complete an application form prescribed by the director, pay all applicable nonrefundable fees, and provide the required information outlined in AZRS 6-1209 and 6-1211. Additionally, you must meet certain eligibility requirements as outlined in AZAC Title 19, Chapter 1, Article 2, Section 1 and maintain a net worth of at least one hundred thousand dollars [2.1][1.3].