What is the minimum net worth requirement for Ohio money transmitters?
The Ohio Money Transmitters Act (OMTA) requires a licensed money transmitter to maintain at all times a minimum net worth of $500,000, calculated in accordance with GAAP. See R.C. 1315.05.
What is the bonding requirement?
A licensed money transmitter must maintain a security device that shall run to the Superintendent for the benefit of any claimants against the licensee, to secure the faithful performance of the obligations of the licensee with respect to its receipt of money from persons in this state for transmission. The minimum amount for the security device is $300,000. Instructions for calculating it are shown on the Security Device Calculation page.
What is PI?
The Ohio Money Transmitters Act requires a licensed money transmitter to maintain permissible investments (“PI”) having an aggregate value of at least the aggregate amount of all of the licensee’s outstandings received from persons in the United States, directly and indirectly and through authorized delegates, to the extent reported to the licensee. Investments that qualify as permissible investments are listed at R.C. 1315.06(B).
Should my company have its financial statements audited?
Yes, R.C. 1315.08(B) requires licensed money transmitters to have their financial statements audited. Audited financial statements must be submitted to the Division within 120 days of the end of the company's fiscal year.
If my company is a subsidiary of another company, must I submit the parent company's audited financial statements?
Yes, if a licensed money transmitter is a subsidiary of another company, the licensee must submit the audited consolidated financial statements of its parent company within 120 days of the end of the company's fiscal year. See R.C. 1315.08(B).
Does Ohio law require quarterly reporting by licensed money transmitters?
Yes, the OMTA requires licensed money transmitters to provide quarterly call reports within 45 days of the quarter end. The following information must be submitted to the Division each quarter:
- The licensee's unaudited, unconsolidated financial statements as of the end of the calendar quarter, including a balance sheet, income statement, statement of changes in shareholder's equity, and statement of cash flows;
- A statement for the calendar quarter of the number of money transmission transactions undertaken by the licensee in Ohio and in the United States in total, the dollar amount of those transactions, and the number and dollar amount of those transactions currently outstanding;
- A schedule of the licensee's permissible investments and their market values as of the end of the calendar quarter; and
- A schedule of the locations, if any, within Ohio at which the licensee is conducting business directly or through its authorized delegates.
Do I need to register my company with FinCEN?
Yes, in general, money services business must register with the Financial Crimes enforcement Network (“FinCEN”). Information about FinCEN registration is available on FinCEN's website.
What is the OFAC list and where can I find it?
Federal law and regulations prohibit business with those on the Office of Foreign Assets Control (“OFAC”) lists. OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called "Specially Designated Nationals" or "SDNs." Their assets are blocked and U.S. persons are generally prohibited from dealing with them. Licensed money transmitters and their agents should scan this list, which is updated periodically, before doing business with a customer, sender, or receiver of money.
Fees and Assessments
What is the license application fee?
The application fee for a new money transmitter license is $5,000.
What is the change in control fee?
The cost to file a change of control application with the Division is $2,500.
How is the annual assessment calculated?
The annual assessment equals the amount of cash needed to be raised by the Division for the operation of the money transmitter supervision program for the next fiscal year, running July 1 – June 30. This cash amount is based on the authorized appropriation of the Division, minus the cash-on-hand (considering any carryover amounts, other income such as licensing fees, and less a three-month reserve).
Each company’s assessment contribution is prorated based on the verified dollar volume of business conducted in the State of Ohio for the preceding year, ending December 31. Assessment fee bills are sent out June 1, with a due date of July 1.
What are the direct examination costs?
Licensees are only charged direct examination costs for on-site Ohio examinations, such as travel costs, hotel, and meals. Licensees are not charged an hourly or daily examination rate. Off-site examinations do not incur direct costs.
Ohio Money Transmitters Act
The OMTA is codified at R.C. Chapter 1315.