money transmitter
Alabama Money Transmitter Laws & Licensing
Complete guide to money transmitter licensing in Alabama. Covers application requirements, surety bond amounts, net worth minimums, FinCEN registration, and key statutes governing money transmission in Alabama.
Alabama money transmitter requirements at a glance
| Surety bond | Not less than $100,000, or the average daily outstanding money-received-for-transmission obligations in Alabama plus 50% of average daily outstanding payment-instrument and stored-value obligations in Alabama, whichever is greater; commission may raise to a maximum of $5,000,000 |
|---|---|
| Minimum net worth | $25,000 |
| Renewal cadence | Annual |
| FinCEN MSB registration | Required |
Application process
To obtain a money transmitter license in Alabama, applicants generally need to submit a completed application to the Alabama State Banking Department, provide a surety bond of $25,000-$500,000, demonstrate minimum net worth of $100,000, provide audited financial statements, implement a comprehensive BSA/AML filings program, and pass background checks for all control persons. Many states now accept applications through NMLS. The application process typically takes 3-12 months depending on the state and complexity of the applicant's business model.
Renewals
Money transmitter licenses in Alabama generally require annual renewal. Renewal typically requires submission of audited financial statements, updated surety bond, quarterly or annual transaction reports, BSA/AML filing documentation, and payment of renewal fees. Some states require call report filings on a quarterly basis throughout the year.
Money transmitters operating in Alabama are also generally expected to register with FinCEN as a money services business (MSB) and implement a comprehensive BSA/AML filings program. This includes appointing a filings officer, developing written policies and procedures, conducting employee training, filing Currency Transaction Reports (CTRs), and submitting Suspicious Activity Reports (SARs). Alabama may have specific requirements for cryptocurrency and virtual currency businesses.
Key statutes
- Alabama Monetary Transmission Act, net worth (Ala. Code § 8-7A-10) . Requires a licensee to maintain net worth of at least $25,000 under generally accepted accounting principles.
- Alabama Monetary Transmission Act (Ala. Code § 8-7A-7) . Requires a surety bond in an amount set by rule/order, but by statute never less than $100,000 (or a formula amount if greater), up to $5,000,000.
Federal baseline
Federal law applies in every state, not just this one.
- Bank Secrecy Act (31 U.S.C. § 5311) . Federal BSA/AML requirements for money services businesses
