The Challenge of Being the Only State Not Regulating Money Transmitters
The Montana Division of Banking does not regulate money transmitters. BUT, in case you read that sentence and breathed a great sigh of relief, that absolutely does not mean that your company – a money transmitter – doesn’t need any licenses in Montana unless the only thing you are doing is money transmission. Which, inconveniently, is not defined under Montana law.
Montana does, however, license consumer finance companies and anyone who collects on a consumer loan. Montana also licenses escrow companies. Montana charters banks and credit unions. Montana licenses retail sales finance companies and all sorts of mortgage entities.
Montana recently put out a notice on its website requesting that money transmitters submit detailed business plans and money flow charts because we get SO MANY requests wanting to know whether companies need a license to do what they are doing, and if so, which license. The reality is that without a detailed business plan and a money flow chart, we really can’t answer that question and so our licensing team was trying to be proactive by requesting this information, but our legal team recognizes that we don’t really have authority to request much of anything from a company that isn’t licensed so we have withdrawn that request. Going forward, please reference the information found at NMLS to determine, hopefully with the assistance of your own legal counsel as the Division cannot act as private legal counsel, what licenses you may need and then apply for any such license using the NMLS.
Tags: Non Depository News