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

Yes, you can obtain a money transmitter license in North Dakota. The requirements for obtaining a money transmitter license in North Dakota are outlined in NDCC Section 13-09-01 and NDCC Section 13-09-09.

Requirements for obtaining a money transmitter license in North Dakota

To obtain a money transmitter license in North Dakota, you must:

  1. Be licensed as a money transmitter in North Dakota [2.1].
  2. Submit a complete application to the commissioner [2.3].
  3. Pay a fee of $400 for investigating the application and $400 for the annual license fee [1.3].
  4. Provide information about the location where the business is to be conducted and the names and addresses of the partners, officers, directors, trustees, and the principal owners or members [1.3].
  5. Undergo an investigation of your financial condition and responsibility, financial and business experience, character, and general fitness [2.3].
  6. Maintain the required bond [2.2].
  7. Maintain registration with the secretary of state if so required [2.2].

Exemptions from licensing requirements

NDCC Section 13-04.1-02.1 outlines entities that are exempt from licensing requirements. These entities include banks, credit unions, savings and loan associations, insurance companies, individuals licensed under chapter 13-10, state or federal agencies and employees of state or federal agencies solely pursuant to the individual's official duties as an employee of the state or federal agency, institutions chartered by the farm credit administration, trust companies, any other person or business regulated and licensed to lend money by the state of North Dakota, a real estate broker, broker, or a real estate salesperson as defined in section 43-23-06.1 in the brokering of loans to assist a person in obtaining financing for real estate sold by the real estate broker, broker, or real estate salesperson, any person, retail seller, or manufacturer providing financing for its own property or inventory held as a normal course of business, or to leases on any real property, a certified development corporation that qualifies as a nonprofit entity under section 501(c)(3) of the federal Internal Revenue Code [26 U.S.C. 501(c)(3)] in the offers of loan products primarily limited to the small business administration, United States department of agriculture, or other government loan products, or nongovernmental loan products that are limited to loans to promote community development or home ownership, and these loans are offered with favorable terms including an interest rate at or below the wall street journal prime rate and loan fees of less than a quarter percent of the loan origination balance, or a nonprofit corporation that qualifies as a nonprofit entity under section 501(c)(3) of the Internal Revenue Code [26 U.S.C. 501(c)(3)] which is not primarily in the business of soliciting or brokering loans, if the nonprofit corporation makes five or fewer loans in a given calendar year, makes these loans to promote community development or home ownership, and offers these loans on favorable terms, including an interest rate at or below the wall street journal prime rate and loan fees of less than a quarter percent of the loan origination balance [1.5].

Application for money broker license

To apply for a money broker license in North Dakota, you must submit a complete application to the Department of Financial Institutions [1.2]. The application must contain any information which the department shall deem necessary and proper. The applicant must register with the North Dakota secretary of state if so required [1.2].

Expiration and renewal of license

All licenses required for money transmitter or money broker expire on December thirty-first of each year and may be renewed. Renewals are effective the succeeding January first. Applications for renewal must be submitted thirty days before the expiration of the license and must be accompanied by the required annual fees, which are not subject to refund. The form and content of renewal applications must be determined by the department of financial institutions, and a renewal application may be denied upon the same grounds as would justify denial of an initial application [1.6].