Code of Maryland Regulations
Title 09 - MARYLAND DEPARTMENT OF LABOR
Subtitle 03 - COMMISSIONER OF FINANCIAL REGULATION
Chapter 09.03.14 - Money Transmitters
Section 09.03.14.05 - Application for License

Universal Citation: MD Code Reg 09.03.14.05

Current through Register Vol. 51, No. 19, September 20, 2024

A. In addition to the requirements set forth in Financial Institutions Article, §12-407, Annotated Code of Maryland, applications for a license shall contain at a minimum and as applicable:

(1) The legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business;

(2) A list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the 10-year period next preceding the submission of the application;

(3) A description of any money transmission previously provided by the applicant and the money transmission that the applicant seeks to provide in this State;

(4) A list of the applicant's proposed authorized delegates and the locations in this State where the applicant and its authorized delegates propose to engage in money transmission;

(5) A list of other states in which the applicant is licensed to engage in money transmission and any license revocations, suspensions, or other disciplinary action taken against the applicant in another state;

(6) Information concerning any bankruptcy or receivership proceedings affecting the licensee or a person in control of a licensee;

(7) A sample form of contract for authorized delegates, if applicable;

(8) A sample form of payment instrument or stored value, as applicable;

(9) The name and address of any federally insured depository financial institution through which the applicant plans to conduct money transmission; and

(10) Any other information the Commissioner reasonably requires with respect to the applicant.

B. In addition to the requirements set forth in Financial Institutions Article, §12-407, Annotated Code of Maryland, if an applicant is a corporation, limited liability company, partnership, or other legal entity, the applicant shall also provide:

(1) The date of the applicant's incorporation or formation and state or country of incorporation or formation;

(2) If applicable, a certificate of good standing from the state or country in which the applicant is incorporated or formed;

(3) A brief description of the structure or organization of the applicant, including any parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly traded;

(4) The legal name, any fictitious or trade name, all business and residential addresses, and the employment, as applicable, in the 3-year period next preceding the submission of the application of each key individual and person in control of the applicant;

(5) A list of any criminal convictions and material litigation in which a person in control of the applicant that is not an individual has been involved in the 3-year period preceding the submission of the application;

(6) A copy of audited financial statements of the applicant for the most recent fiscal year and for the 2-year period next preceding the submission of the application or, if the audited statements are not available for good cause and the Commissioner determines the Commissioner can make findings necessary to grant or deny the license, certified unaudited financial statements for the most recent fiscal year or other period acceptable to the Commissioner;

(7) A certified copy of unaudited financial statements of the applicant for the most recent fiscal quarter;

(8) If the applicant is a publicly traded corporation, a copy of the most recent report filed with the United States Securities and Exchange Commission under §13 of the federal Securities Exchange Act of 1934, 15 U.S.C. § 78m, as amended or recodified from time to time;

(9) If the applicant is a wholly owned subsidiary of:
(a) A corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation's most recent report filed under §13 of the U.S. Securities Exchange Act of 1934, 15 U.S.C. § 78m, as amended or recodified from time to time; or

(b) A corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;

(10) The name and address of the applicant's registered agent in this State; and

(11) Any other information the Commissioner reasonably requires with respect to the applicant.

C. The Commissioner may waive or modify the requirement to produce audited financial statements in Financial Institutions Article, §12-407, Annotated Code of Maryland, if:

(1) The applicant cannot produce audited financial statements required by Financial Institutions Article, §12-407, Annotated Code of Maryland;

(2) The Commissioner determines good cause exists for the applicant's inability to produce audited financial statements required by Financial Institutions Article, §12-407, Annotated Code of Maryland;

(3) The applicant produces certified unaudited financial statements for the most recent fiscal year or other period required by the Commissioner; and

(4) The Commissioner determines the Commissioner can make findings necessary to grant or deny the license based on all information presented.

D. The Commissioner may waive one or more requirements of this regulation or permit an applicant to submit other information in lieu of the required information.

E. Applications.

(1) The Commissioner shall approve or deny an application for an initial license, a renewal license, or a license amendment within 60 days after the Commissioner receives a completed application, including, if applicable, a surety bond and all required fees.

(2) If the Commissioner notifies an applicant that an application for an initial license, a renewal license, or a license amendment is incomplete, the Commissioner shall itemize the steps that the applicant must take to complete the application.

(3) The application for an initial license, a renewal license, or a license amendment may not be approved until after the applicant completes all steps identified in the Commissioner's notice.

(4) If an application for an initial license, a renewal license, or license amendment is incomplete when submitted and remains incomplete, the Commissioner may stop processing and consider the incomplete application withdrawn, if the Commissioner has previously notified the applicant of the basis for incompleteness in accordance with §E(2) of this regulation, and given the applicant not less than 15 days to correct the incompleteness.

F. Trade Names.

(1) Prior to a licensee's use of a trade name to engage in the business of money transmission in Maryland, the licensee shall:
(a) Register the trade name with the Maryland Department of Assessments and Taxation; and

(b) Obtain the approval of the Commissioner for the use of the trade name by:
(i) Designating on an original license application, a license renewal application, or an amendment to an existing license, through NMLS, any trade name under which the licensee will engage in the business of money transmission in this State; and

(ii) Specifying on an original license application, a license renewal application, or an amendment to an existing license, through NMLS, which licensed locations will utilize the trade name.

(2) At all times after obtaining the approval of the Commissioner for the use of the trade name, a licensee shall maintain registration of the trade name in accordance with the requirements of Corporations and Associations Article, §1-406, Annotated Code of Maryland, and accompanying regulations.

(3) A licensee shall immediately notify the Commissioner if the licensee amends, cancels, or otherwise fails to renew the registration of a trade name which the Commissioner has approved previously.

Disclaimer: These regulations may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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