# What should I do if I received a cease and desist for operating without a money transmitter license? **Direct answer:** Stop the transmitting activity named in the order right away, do not ignore the response deadline, preserve your records, and get licensing counsel involved before you reply, because a cease and desist for unlicensed money transmission can carry fines and, in many states, criminal exposure. A cease and desist order from a state banking or financial regulator means the state believes you are transmitting money without the license that activity requires. These orders carry firm response deadlines, and the way you respond shapes whether the matter ends in a corrective licensing path or escalates to penalties. ## Why these orders are serious Unlicensed money transmission is one of the few licensing failures that can carry criminal as well as civil penalties, at both the state and federal level. A state cease and desist is the regulator putting the activity on notice. Federal money services business obligations under the Bank Secrecy Act can apply in parallel, separate from the state license question. ## The response deadline is the first thing to find Cease and desist orders state a deadline to respond or request a hearing, often measured in a small number of days. Missing it can turn a contestable notice into a final order with penalties attached. Read the order carefully and calendar the deadline before anything else. ## Whether you were actually required to be licensed Some activities that look like money transmission are covered by an exemption, an agent-of-payee provision, or a partnership with a licensed institution. Part of the response is establishing whether a license was required at all, or whether you qualify for an exemption that resolves the order. ## What to do now 1. **Stop the activity named in the order.** Halt the specific transmitting activity the order describes in the state that issued it. Do not keep processing while you decide how to respond. 2. **Calendar the response deadline.** Find the deadline to respond or request a hearing and treat it as fixed. Missing it can make the order final. 3. **Preserve records.** Lock down transaction records, customer agreements, and your compliance documentation. You will need them to show the scope of activity and to support a licensing or exemption argument. 4. **Engage licensing counsel before you reply.** Have counsel experienced in money transmitter enforcement review the order and draft the response, whether that response argues an exemption or proposes a path to getting licensed. 5. **Map the licensing path if a license is required.** If you do need the license, begin the state application and FinCEN money services business registration so your response can show a concrete remediation plan. ## Frequently asked questions ### How long do I have to respond to a money transmitter cease and desist? The order sets the deadline, and it is often a small number of days. Find the stated response or hearing-request deadline immediately and treat it as fixed, because missing it can make the order final. ### Can I be charged criminally for operating without a money transmitter license? Yes. Unlicensed money transmission can carry criminal as well as civil penalties under state law, and federal money services business rules under the Bank Secrecy Act can apply in parallel. This is why counsel should be involved before you respond. ### What if I qualify for an exemption? Some activity is covered by an exemption, an agent-of-payee provision, or a relationship with a licensed institution. If an exemption applies, the response to the order can establish that a license was not required. ### Will getting licensed resolve the order? Not automatically, but showing a concrete path to licensing and FinCEN registration is often central to resolving an order on corrective terms rather than escalating to penalties.