Money Service Business: FAQ's
Q: What type of licenses does New Mexico offer for Money Service Businesses?
The Financial Institutions Division issues three different license types for money service businesses. See below.
Check Casher License: This license is required for any company or person engaging in the business of check cashing or advertising, soliciting or holding itself out as providing check cashing for which the person receives at least two thousand five hundred dollars ($2,500) within a thirty-day period. Check cashing means receiving compensation for taking payment instruments or stored value, other than traveler’s checks, in exchange for money, payment instruments or stored value delivered to the person delivering the payment instrument or stored value at the time and place of delivery without an agreement specifying when the person taking the payment instrument will present it for collection.
Currency Exchange License: This license is required for any company or person engaging in the business of currency exchange or advertising, soliciting or holding itself out as providing currency exchange for which the person receives revenues equal or greater than five percent of the total revenues. Currency exchange means receipt of revenues from the exchange of money of one government for money of another government.
Money Transmitter License: This license is required for any company or person engaging in the business of money transmission or advertising, soliciting or holding itself out as providing money transmission. Money transmission means selling or issuing payment instruments, stored value or receiving money or monetary value for transmission. “Money transmission: does not include the provision solely of delivery, online or telecommunications services or network access.
Q: What are the requirements to become licensed in New Mexico?
Money service businesses are required to complete a license application through the Nationwide Multi-State Licensing system (NMLS). Requirements for each specific license type are provided on the New Application checklists below.
Check Casher License Checklist
Currency Exchange Checklist
Money Transmitter License Checklist
Q: I am an authorized agent / delegate for a licensed money transmitter. Do I need to register my business as such with the State of New Mexico?
No, money transmitter licensees are responsible for registering all active authorized agents and delegates with the Financial Institutions Division on a quarterly basis.
Q: Does the New Mexico provide any exemptions for small businesses solely engaged in check cashing services?
Yes, any business engaged in check cashing services whose revenue is less than $2,500 in any given 30 day period may apply for a license exemption with the Financial Institutions Division.
Q: Are virtual currency exchanges or other businesses engaged in the exchange of crypto currency for monetary value required to be licensed as a money service business?
Yes, pursuant to the definitions of “money”, “monetary value”, “money transmission”, ”payment instrument”, “stored value” and “internet-based money services business” as contained within the Uniform Money Services Act §58-32-102 NMSA 1978, it is the position of the New Mexico Financial Institutions Division that any entity engaged in the business of providing the exchange of virtual currency for money or any other form of monetary value or stored value to persons located in the State of New Mexico must be licensed by the FID as a money transmitter.
Q: Is the exchange of crypto currencies, such as Bitcoin, qualify my business for a currency exchange license?
No, pursuant to definition of “currency exchange” only the exchange of currencies backed by a government entity or foreign governments qualifies a business engaged in this activity for a currency exchange license.
Q: How do I verify that my business is licensed as a money service business in New Mexico?
To verify a money service business license, please refer to the NMLS Consumer Access Portal.
Q: How do I verify that my business is registered as an authorized agent/delegate in New Mexico?
To verify an authorized agent/delegate registration, the Financial Institutions Division posts a list of all active authorized agents/ delegates on our website. This list is updated quarterly and be found under the NMLS & Consumer Access section.
Q: Are Money Service Businesses required to have a surety bond?
Surety bonds are required for money transmitter licenses only. Pursuant to §58-32-203 (A) NMSA 1978, money transmitters must maintain a minimum surety bond of $300,000 or 1% of the total yearly dollar volume of money transmission business within the State of New Mexico, whichever is greater. Surety bonds may be capped at $2,000,000.
To calculate the required bond amount, click here to access the Surety Bond Requirement Calculator.
Q: What are the licensing fees for money service businesses?
| Original Application Fee: |
$2,000 |
| Original License Fee: |
$2,000 |
| Annual License Renewal Fee: |
$1,000 |
| Authorized Agent / Delegate |
$25 p/agent-delegate |
Q: I am in process of completing a licensee application for my business, who would be defined as a control person?
Control persons are defined as direct owners, indirect owners, and executive officers.
Q: I have recently been approved for a money service business license, when will I receive a license certificate and license number?
The Financial Institutions Division does not issue license certificates or license numbers for money service businesses. The NMLS ID number assigned to your business will be the New Mexico license identifying number.
Q: When does my license expire?
All Money Transmitter, Check Casher, and Currency Exchange licenses expire on December 31st of each calendar year.
Q: Are there any annual reporting requirements for money service businesses?
Yes, the Division requires reporting of all authorized agents and/or delegates due within 45 days after the end of each fiscal quarter. The reports must be submitting by utilizing the Uniform Authorized Agent Reporting (UAAR) functionality in the NMLS system.
The New Mexico Attorney General may require additional money laundering reporting for federal currency, recordkeeping, and suspicious transactions. For information, contact the Attorney General’s Office.
Q: What is the process for submitting a change of control for a money service business?
Money service businesses are required to submit an advance change notice through the NMLS system for all direct and indirect proposed control changes. Businesses are required to submit $2,000 non-refundable fee for any control changes of 25% or more for the licensee or parent company. Detailed information regarding any such control change, including a revised organization chart showing the percentage changes, is also required.
Q: What is required if I wish to surrender my money service business license?
To surrender a money service business license, a licensee must log into their NMLS account and follow the steps provided. The Financial Institutions Division requires licensees to provide detailed information as to the reason for license surrender and a surrender effective date.