Idaho Money Transmitters Section
The Securities Bureau of the Department of Finance is charged with the responsibility of administering and enforcing the Idaho Money Transmitters Act.
Who is required to have an Idaho Money Transmitter license?Any person, unless exempt, that sells or issues payment instruments or who engages in the business of receiving money for transmission or engaging in the business of money transmission, by any and all means including but not limited to payment instruments, wire, facsimile, or electronic transfer.
More plainly, the Department licenses:
- Money and wire remitters (including both business and consumer transactions)
- Money Order issuers and sellers
- Traveler Check issuers and sellers
- Payment Processors
- Open Loop and Semi-Closed Loop “Stored Value” issuers and sellers. Many open-system stored value cards (e.g., MasterCard Cash Cards) are sold by retail merchants and the card is ultimately issued by a state or federally chartered financial institution. Idaho Code §26-2904(d) only exempts banks from the Idaho Money Transmitters Act where they do not issue or sell payment instruments through agents who are not banks. Therefore, non-bank retail locations must be licensed as a money transmitter or be an authorized delegate of a licensed money transmitter.
- Open Loop and Semi-Closed Loop “Prepaid Access” issuers and sellers
- Delayed Delivery Currency or Stored Value Delayed Delivery Providers
- Virtual Currency Exchangers. If you act as a virtual/digital currency exchanger and accept legal tender (e.g., government backed/issued “fiat” currencies) for later delivery to a third party in association with the purchase of a virtual currency, then you must be licensed as a money transmitter with the Department of Finance.
Who does not need this license?
- Agencies of the United States, agencies of Idaho and its political subdivisions
- The United States post office
- The State or any political subdivision of the state
- Banks, credit unions, savings and loan associations, savings banks or mutual banks organized under the laws of any state or the United States, provided that they do not issue or sell payment instruments through authorized delegates who are not banks, credit unions, savings and loan associations, savings banks or mutual banks, and
- Authorized representatives of a licensee, acting within the scope of authority conferred by a written contract conforming to the requirements of Section 26-2918 of the Idaho Money Transmitters Act.
What are the pre-requisites for license applications?
|License Application Payment||$100.00 application fee.|
|Net Worth Requirements||Applicants must provide financial statements demonstrating a minimum net worth of $50,000 with a sliding scale of increasing net worth based on the number of Idaho locations to a maximum of $250,000.|
|Surety Bond||Applicants must deliver a surety bond to the Idaho Department of Finance in a minimum amount of $10,000 with a sliding scale of bonding based on Idaho locations to a maximum bonding amount of $500,000.|
|Agent/Location Data||Applicants must identify all Idaho locations where their business may be conducted. This should include the identification of company owned outlets as well as any agents/authorized representatives. The Idaho Money Transmitters Act mandates the use of and identifies some requirements necessary in an authorized representative contract (I.C. § 29-2918) for use by licensees with their Idaho locations.|
Money transmitters can obtain an Idaho money transmitter license through a national electronic licensing system known as the NMLS. The system and related information can be found at https://mortgage.nationwidelicensingsystem.org/.
For companies not conducting a multi-state business or not interested in using NMLS, application forms are available Here.
Additional questions: contact our office at (208) 332-8004 or toll free within Idaho 1-888-346-3378.