money transmitter
Connecticut Money Transmitter Laws & Licensing
Complete guide to money transmitter licensing in Connecticut. Covers application requirements, surety bond amounts, net worth minimums, FinCEN registration, and key statutes governing money transmission in Connecticut.
Connecticut money transmitter requirements at a glance
| Surety bond | Non-virtual-currency transmitters: not less than $300,000 (avg weekly transmissions < $300,000), $500,000 ($300,000-$500,000), or $1,000,000 (> $500,000); virtual-currency transmitters: amount set by the commissioner |
|---|---|
| Net worth requirement | $100,000 for issuing or selling checks, drafts or money orders; $500,000 for money transmission other than issuing or selling payment instruments or stored value; $1,000,000 for travelers checks, electronic payment instruments or stored value |
| Renewal cadence | Annual |
| FinCEN MSB registration | Required |
Application process
To obtain a money transmitter license in Connecticut, applicants generally need to submit a completed application to the Connecticut Department of Banking, 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 Connecticut 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 Connecticut 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). Connecticut may have specific requirements for cryptocurrency and virtual currency businesses.
Key statutes
- Net worth requirements (Conn. Gen. Stat. § 36a-604) . Sets tangible net worth by the type of instrument: $100,000 for checks, drafts and money orders, $500,000 for money transmission other than issuing or selling payment instruments or stored value, and $1,000,000 for travelers checks, electronic payment instruments or stored value.
- The Banking Law of Connecticut (Conn. Gen. Stat. § 36a-602) . Sets money transmission surety bond at a tiered principal sum of not less than $300,000, $500,000, or $1,000,000 based on average weekly transmission volume.
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
