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

To obtain a money transmitter license in Colorado, you must meet the following requirements:

License Requirements

  1. The applicant must be of good moral character and financially responsible and must be able to comply with Article 110 of the Colorado Revised Statutes [2.5].
  2. The applicant must pay for the cost of the investigation [2.5].
  3. If the applicant is a natural person, they must be over 21 years of age. If the applicant is a partnership, each partner must be over 21 years of age. If the applicant is a joint stock association, common law trust, unincorporated company or association, or corporation, each of the officers, directors, trustees, or other managing officials must be over 21 years of age [2.5].
  4. The applicant must not have submitted a license application that was false or misleading as a result of an untrue statement of a material fact or an omission to state a material fact unless the applicant did not know, and in the exercise of reasonable care should not have known, of the untruth or omission. The applicant must not have willfully violated or willfully failed to comply with Article 110 of the Colorado Revised Statutes or a rule promulgated or order issued under Article 110. The applicant must not have entered a plea of guilty or nolo contendere to, or was convicted of, a felony or misdemeanor involving a breach of fiduciary duty or fraud within the past ten years. The applicant must not be subject to a temporary or permanent injunction for violating a state or federal law regulating the financial services industry, including, but not limited to, federal provisions regarding money laundering, record keeping, and registration [2.5].

Agent Requirements

If you are an agent or owner of an agent holding more than a ten percent interest in the business, you must not have been convicted of or pleaded guilty or nolo contendere to the offenses in article 5 of title 18; a felony in the selling or issuing of exchange or in money transmission; a felony involving a financial institution; or an equivalent crime outside Colorado. If you are an agent of a money transmitter licensed pursuant to Article 110, you must not knowingly employ a person to perform money transmission services who has been convicted of or pleaded guilty or nolo contendere to the offenses in article 5 of title 18; a felony in the selling or issuing of exchange or in money transmission; a felony involving a financial institution; or an equivalent crime outside Colorado [1.1].

Application Process

To apply for a license, you must submit a written application under oath to the Colorado Banking Board [2.1]. The application must include the name and address of the applicant's principal office, evidence that the applicant possesses qualifications and experience as required by the banking board, the date and place of incorporation, the name and address of each location where the applicant proposes to engage in the business of issuing checks, drafts, money orders, or other instruments for the transmission or payment of money or credit, a set of fingerprints for each of the owners, principal shareholders, principal members, directors, trustees, officers, or other managing officials, and financial statements of the applicant [2.1]. The applicant must also pay for the cost of the investigation [2.5].

License Issuance and Renewal

Before any license is issued, and annually thereafter on or before January 1 of each succeeding year, the applicant or licensee shall pay to the banking board a license fee in an amount set by the banking board pursuant to section 11-102-104 (11). Each license shall expire on January 1 unless the annual fee for the year has been paid prior to that date. Before any license may be renewed, the licensee shall be required to provide the same amount of bond coverage or securities for deposit as an initial applicant under section 11-110-108 [2.3].

Violations

A person who violates Article 110 of the Colorado Revised Statutes commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501. A person who acts as an agent of an unlicensed person required to be licensed by Article 110 knowing the unlicensed person does not hold the license commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501 [1.3].

Therefore, to obtain a money transmitter license in Colorado, you must meet the above requirements and follow the application process.