The New York DFS Money Transmitter License is the state authorization that every business must hold before it can sell or issue checks, drafts, money orders, or transmit money in or from New York, and it is filed through the Nationwide Multistate Licensing System (NMLS) using the Company Form (MU1), Branch Form (MU3), and Individual Form (MU2). The license is governed by New York Banking Law Article 13-B and 3 NYCRR Part 406, and it is enforced by the New York State Department of Financial Services.
Operating without this license is a Class A misdemeanor under Banking Law § 650, and DFS data shows that first-time applications take 6 to 12 months to approve, with roughly 40% of applications returned for deficiencies on the first review. This article walks you through the entire filing, line by line, in plain English.
- 📋 The exact NMLS checklist items, document uploads, and DFS Portal steps you must complete
- 💰 Current fees, surety bond math, and the $500,000 minimum tangible net worth rule
- ✍️ Field-by-field instructions for the MU1, MU2, and MU3 forms
- 🧭 Three full filer scenarios from intake to approval
- ⚠️ The most common mistakes that trigger a deficiency letter or outright denial
What the Form Is and Who Must File It
The New York DFS Money Transmitter License is a state license that authorizes a company to receive money for transmission, sell or issue payment instruments, or transmit money inside or from New York for a fee. The application package is filed in the NMLS Resource Center under the New York Money Transmitter License – Company record, and it consists of the Company MU1, one MU2 for every direct or indirect control person, and an MU3 for each licensed branch.
Any person or entity that engages in the business of money transmission with New York residents must file. That includes payment processors, remittance companies, payroll funding firms, prepaid access issuers, bill-pay aggregators, and many marketplace platforms that hold funds in transit. Banks, federal credit unions, and the U.S. Postal Service are exempt under Banking Law § 641.
Virtual currency businesses face a separate path. If you transmit fiat you need this MTL, and if you also custody, buy, sell, or issue virtual currency with New York customers you also need a BitLicense under 23 NYCRR Part 200. Many crypto-fiat on-ramps hold both. The MTL covers the dollar leg, the BitLicense covers the crypto leg, and DFS reviews them together when filed in parallel.
The statute behind the form is New York Banking Law Article 13-B, the regulation is 3 NYCRR Part 406, and the agency that receives the file is NYDFS. The deadline is before you transmit a single dollar from a New York customer, and the penalty for skipping it includes civil fines up to $5,000 per violation plus criminal exposure under § 650.
Before You Start: Documents and Information You Need
Open NMLS only after you have these items ready. The system times out, the DFS Portal expects matching uploads, and missing documents are the leading cause of the deficiency letters that delay approval by two to four months. The current NY Money Transmitter Company New Application Checklist is your master list.
- Certificate of Good Standing from your state of formation, dated within 60 days, because DFS verifies legal existence on the day of filing and a stale certificate triggers a hold.
- Audited financial statements for the most recent fiscal year, prepared under U.S. GAAP, used to verify the $500,000 minimum tangible net worth required by § 641-a.
- Surety bond of at least $500,000, scaled upward by transmission volume to a cap of $7 million, because DFS will not issue without an executed bond on file.
- Business Plan with three years of pro forma financials, customer flow narrative, and product roadmap, because § 641 requires DFS to find the applicant financially responsible.
- AML/BSA Program that meets 31 CFR Chapter X and DFS Part 504 transaction monitoring rules, because an inadequate program is the single most common denial reason.
- OFAC Sanctions Program with a written screening procedure, because DFS reads it alongside the AML manual.
- Cybersecurity Program that complies with 23 NYCRR Part 500, since money transmitters are Covered Entities under that rule.
- Flow of Funds diagrams for each product line, because examiners use them to confirm where customer money sits at every minute of the transaction.
- Organizational chart showing every direct and indirect owner of 10% or more, because each must file an MU2 and submit fingerprints.
- FinCEN MSB Registration confirmation under 31 USC § 5330, because DFS will ask for the registration number on the Supplemental Question form.
- Fingerprint cards scheduled through NMLS for every control person, because the FBI and NY State Division of Criminal Justice Services background checks must clear before approval.
- Bank account verification letter from a U.S. depository institution that will hold customer funds in trust.
If any item is missing the day you submit, NMLS will accept the filing and DFS will simply send a deficiency letter that pauses your review clock.
Where to Get the Form and How to Access It
You do not download a PDF. The application lives entirely inside NMLS, and DFS-specific items are uploaded to the NYDFS Industry Applications Portal. Start by requesting a Company NMLS account if you do not have one, then add the New York Money Transmitter License to your filing.
The forms used are the Uniform Company License Form (MU1), the Uniform Individual License Form (MU2), and the Uniform Branch License Form (MU3). Their official versions, including the most recent revision dates, are linked from the NMLS Forms page. Always confirm you are filing the current revision because NMLS rejects superseded versions automatically.
New York adds a Supplemental Question form and several state-specific document uploads. These appear in NMLS once you select New York as the jurisdiction. The full state checklist, refreshed by NMLS each quarter, is the NY MT Company New App Checklist, and you should print it on day one and tick each line as you complete it.
If you are a sole proprietor, use the NY MT Sole Proprietor Checklist. If you plan to open a physical New York office, you also file an MU3 for that branch.
Step-by-Step: How to Fill Out the New York Money Transmitter Application Line by Line
The application has three forms and a New York Supplemental section. Work through them in this order so dependencies resolve cleanly.
Form MU1, Section 1: Identifying Information
This section asks for the legal name, trade names, NMLS ID, FEIN, formation date, and principal office address of the applicant company. Enter the exact legal name as it appears on the Certificate of Good Standing, in all caps, with no abbreviations unless the certificate uses them. Acme Payments, Inc. writes its legal name as ACME PAYMENTS, INC.
A frequent edge case is the holding company structure. If the applicant is a wholly owned subsidiary, you list the operating subsidiary as the applicant and disclose the parent in Section 5, not here. Filers often list the parent as the applicant, which forces a full withdrawal and refile because DFS licenses the operating entity.
The most common mistake is using a trade name in the legal name field. The consequence is automatic rejection by NMLS validation, since the system cross-checks the name against IRS FEIN records. A common misconception is that a doing business as line replaces the legal entity name, when in reality the DBA belongs in the trade name field that follows.
Form MU1, Section 2: Other Trade Names
This field captures every brand, product name, or d/b/a under which the company will market money transmission to New York consumers. Enter each name on its own line, with the state where it is registered. Carlos’s remittance brand RapidoSend would appear as RAPIDOSEND – Registered in NY, FL, TX.
The nuance is that a trade name not registered in New York cannot be used to solicit New York customers. The consequence of skipping a registration step is a consent order and a forced rebrand. A common mistake is listing only the parent’s brand and forgetting the white-label products sold through partners. The misconception is that internal product code names belong here, when only consumer-facing names are required.
Form MU1, Section 3: Resident/Registered Agent
Enter the name and address of the company’s registered agent for service of process in New York. Use the agent’s exact name as filed with the New York Department of State. CT Corporation System, 28 Liberty Street, New York, NY 10005 is a typical entry.
If the company is foreign, it must first register to do business in New York with the Department of State and obtain a New York agent before filing the MTL. The consequence of skipping this step is an immediate deficiency letter, because DFS verifies agent status against DOS records.
A common mistake is listing a partner law firm instead of an actual registered agent of record. The misconception is that the home-state agent works for New York service, when each state requires its own.
Form MU1, Section 4: Contact Employees
List the primary, AML/BSA, and consumer complaint contacts. Each contact needs a direct phone, business email, and physical office address. Priya Shah, Chief Compliance Officer, priya@acmepay.com, (212) 555-0111 is a clean entry.
The nuance is that the AML/BSA contact must be the same person named as BSA Officer in your AML manual, otherwise examiners flag the inconsistency. The consequence of a mismatch is a delay while DFS asks for a corrected manual. A common mistake is listing an outside consultant as the BSA Officer; DFS expects an employee in this seat. The misconception is that any senior officer can sign, when only the named BSA Officer can.
Form MU1, Section 5: Direct Owners and Executive Officers
List every direct owner of 10% or more, every executive officer, and every director. For each, you note name, title, ownership percentage, and start date. Carlos Mendez, CEO and 60% owner, start date 03/14/2022 shows the format.
The nuance is indirect ownership. If a holding company owns the applicant, you also list every person who owns 10% or more of the holding company, walking up the chain until you reach natural persons. The consequence of stopping the chain too early is a deficiency that requires an amended MU1 plus extra MU2 filings.
The most common mistake is omitting passive investors, including venture capital fund LPs that control through a fund GP. The misconception is that LPs are exempt; DFS treats control as the test, not passive intent.
Form MU1, Section 6: Indirect Owners
This section captures the owners of any entity listed in Section 5 that is itself a company. Each indirect owner gets its own row with ownership percentage and relationship. Mendez Holdings, LLC – 100% owner of Acme Payments, Inc., owned 100% by Carlos Mendez is a sample chain.
The nuance is multi-tier ownership. You climb the chain until every owner is a natural person at the top, then each top-tier person files an MU2. The consequence of skipping a tier is a denial for failure to disclose control persons.
A common mistake is showing only the percentage at one level rather than the multiplied effective percentage. The misconception is that holding companies are not control persons, when in fact they are control persons under the regulation.
Form MU1, Section 7: Qualifying Individuals
New York does not require a qualifying individual the way some states do, but the field still appears for jurisdictions that need one. Leave it blank unless you are also filing in a state that requires a Qualifying Individual.
The consequence of entering a name when none is required is harmless, but it can confuse examiners cross-checking your filings. The common mistake is listing the CEO out of caution. The misconception is that this person must be a New York resident; New York simply does not use this slot.
Form MU1, Section 8: Disclosure Questions
This is a series of Yes/No questions covering criminal history, regulatory actions, civil judgments, and bankruptcies for the company itself. A Yes triggers a required document upload explaining the matter.
The nuance is that you answer for the company in this section and individuals answer in their own MU2. The consequence of a missed Yes is a license denial for false statement, which also blocks future applications. A common mistake is reading the questions narrowly; DFS expects broad disclosure of any matter that could be material. The misconception is that a sealed or expunged matter need not be disclosed; if the question asks for all matters, disclose and explain.
Form MU2, for Each Control Person
Every control person identified in Sections 5 and 6 files an MU2 attested under penalty of perjury. The form collects ten years of residential history, ten years of employment history, and the same disclosure questions as the MU1 but at the individual level.
Schedule fingerprinting through NMLS the same day you submit the MU2. Janet Reilly, COO and 15% owner of PrePaidCo, would appear in NMLS, schedule prints at an IdentoGO location, and pay the FBI and NY DCJS fees of roughly $36.25 + $75.25.
The most common mistake is gaps in residential history. The consequence is an automatic NMLS validation error that blocks submission. The misconception is that current address alone is enough; the form requires unbroken coverage for the full ten-year window.
Form MU3, for Each New York Branch
If you operate a physical office in New York, file one MU3 per location. List the street address, phone, branch manager, and activities conducted at the site. Acme Payments – 100 Wall Street, Floor 5, New York, NY 10005, Branch Manager: Priya Shah is a typical entry.
The nuance is virtual offices. If staff work from home and you have no public-facing branch, you do not file an MU3, but you do disclose remote work in the Cybersecurity Program. The consequence of filing a phantom branch is annual branch fees you do not owe.
A common mistake is listing the registered agent’s address as a branch. The misconception is that every state requires a physical New York branch; New York does not.
New York Supplemental Question Form
This is the New York–specific addendum delivered through NMLS. It asks for FinCEN MSB registration number, a list of every state where you hold an MTL, your bank references, and the exact products you intend to offer to New York customers.
Enter the FinCEN registration number exactly as issued, in the format 31000XXXXXXXX. The nuance is that products not listed here cannot be offered after licensing without filing an amendment. The consequence of vague product descriptions is a narrow license that limits your roadmap.
The common mistake is checking every product box just in case. DFS reads each box as a commitment that triggers product-specific exam questions. The misconception is that you can broaden products informally; New York requires a formal change of business activity notice.
Surety Bond Upload
Upload the executed surety bond on the New York DFS approved form. The minimum is $500,000, scaling with transmission volume up to $7 million under 3 NYCRR § 406.5. Acme Payments projecting $200 million in annual NY volume would post a bond near $2 million.
The nuance is that DFS may accept a deposit of cash or securities in lieu of a bond, but the deposit goes to the Superintendent and is not refundable until the license terminates. The consequence of a stale or unsigned bond is an immediate deficiency. The common mistake is using a generic surety form instead of the DFS-approved version. The misconception is that the bond covers the company; it actually protects consumers who lose money.
Audited Financial Statements Upload
Upload the most recent audited financials, with the auditor’s signed opinion. DFS calculates tangible net worth as total assets minus total liabilities minus intangible assets, and it must equal at least $500,000 at filing.
The nuance is that startups without an audit history can submit audited opening balance sheets. The consequence of missing the threshold is a denial for insufficient financial responsibility. The common mistake is uploading reviewed or compiled statements; DFS requires audited. The misconception is that goodwill counts as tangible; it does not.
Business Plan Upload
The Business Plan must include a three-year pro forma, customer acquisition strategy, geographic rollout, product list, and exit plan if the venture fails. Carlos’s RapidoSend would describe a U.S.–Mexico remittance corridor, marketing through bodegas, and projected $50 million Year 1 volume.
The nuance is the wind-down section, which examiners read first to confirm consumer funds are protected if the business closes. The consequence of skipping wind-down is a deficiency letter. The common mistake is recycling a venture pitch deck. The misconception is that DFS wants growth metrics; DFS wants consumer protection details.
AML/BSA, OFAC, and Cybersecurity Programs Upload
Upload three separate documents, each signed and dated by the responsible officer. The AML manual must follow the five pillars of 31 CFR § 1022.210. The OFAC manual must cite the SDN list screening cadence. The Cybersecurity Program must comply with 23 NYCRR Part 500, including a CISO designation.
The nuance is that examiners expect operational evidence, not policy templates. A Marcus, BSA Officer at Bill-Pay-Now, would attach screenshots of the transaction monitoring tool, sample SARs (redacted), and a training log. The common mistake is using a vendor template with no tailoring. The misconception is that one combined manual is acceptable; DFS expects three distinct documents.
Flow of Funds Diagram Upload
This is a one-page diagram per product showing every account, every counterparty, and every minute that customer funds are in transit. Label each account with the bank name, account type, and whether it is a trust or for-the-benefit-of account.
The nuance is embedded payments. If you use a sponsor bank or a partner processor, you must show their accounts too. The consequence of an unclear diagram is a long examiner Q&A that adds weeks to review. The common mistake is leaving out the settlement timing. The misconception is that the diagram is decorative; it is the first document examiners read.
Three Filled-Out Examples Using Real Scenarios
Scenario 1: Carlos Mendez, Founder of RapidoSend (U.S.–Mexico Remittance Startup)
| Form Section | What Carlos Enters |
|---|---|
| Legal Name (MU1 §1) | RAPIDOSEND, INC. |
| Trade Names (MU1 §2) | RAPIDOSEND registered in NY, TX, FL |
| Registered Agent (MU1 §3) | CT Corporation, 28 Liberty Street, New York, NY 10005 |
| BSA Contact (MU1 §4) | Carlos Mendez, CEO and acting BSA Officer until hire |
| Direct Owners (MU1 §5) | Carlos Mendez 60%, Series A VC fund 25%, employee pool 15% |
| MU2 Filers | Carlos Mendez, the VC fund GP, and Carlos’s co-founder CTO |
| Surety Bond | $500,000 baseline, planned increase at Year 2 |
| Tangible Net Worth | $1.2 million from Series A proceeds |
| FinCEN MSB Number | 31000123456789 |
| Products Selected | Money Transmission only, no payment instruments |
Scenario 2: Priya Shah, GC of CaliPay (California-Licensed Processor Expanding to New York)
| Form Section | What Priya Enters |
|---|---|
| Legal Name (MU1 §1) | CALIPAY HOLDINGS, INC. |
| Trade Names (MU1 §2) | CALIPAY and white-label MERCHANTFLOW |
| Other State Licenses | California, Texas, Florida, Illinois |
| Direct Owners (MU1 §5) | Founder family trust 70%, Series B fund 20%, ESOP 10% |
| Indirect Owners (MU1 §6) | Trustees of the family trust as natural persons |
| MU2 Filers | CEO, CFO, BSA Officer, CISO, two independent directors |
| Surety Bond | $3 million scaled to $1 billion projected NY volume |
| Audited Financials | Big Four audit, $80 million tangible net worth |
| Cybersecurity Program | Existing Part 500 program from prior NY DFS exam |
| Products Selected | Money transmission, payment instruments, prepaid access |
Scenario 3: Janet Reilly, COO of CryptoBridge (Stablecoin On-Ramp Filing MTL Plus BitLicense)
| Form Section | What Janet Enters |
|---|---|
| Legal Name (MU1 §1) | CRYPTOBRIDGE FINANCIAL, INC. |
| Trade Names (MU1 §2) | CRYPTOBRIDGE and USDB ON-RAMP |
| Parallel License | BitLicense application filed same day under 23 NYCRR Part 200 |
| Direct Owners (MU1 §5) | Founders 45%, crypto-native VC 40%, employees 15% |
| MU2 Filers | Two founders, VC partner, BSA Officer, CISO |
| Surety Bond | $500,000 fiat-leg minimum, separate trust for crypto |
| Tangible Net Worth | $15 million from Series A |
| Flow of Funds | Two diagrams: fiat leg under MTL, crypto leg under BitLicense |
| AML Program | Includes Travel Rule and blockchain analytics vendor |
| Products Selected | Money transmission for fiat conversion only |
How to File the Completed Form
You file the New York MTL through two channels at the same time. The primary channel is NMLS online, and the secondary channel is the DFS Industry Portal for documents NMLS cannot host. Paying close attention to both prevents the most common procedural delays.
The NMLS filing fee is $3,000, the New York investigation fee is $2,000, and FBI and NY DCJS fingerprint fees run roughly $36.25 plus $75.25 per person. Pay by ACH inside NMLS payments. NMLS does not accept paper checks for new applications.
The DFS Industry Portal accepts the surety bond, board resolutions, and any oversize files that exceed NMLS upload limits. Access it at the DFS Apps and Licensing page. Save the confirmation email and PDF receipt as proof of filing for both channels.
Mail filing is not available for new MTL applications. In-person filing is not available either. Fax is not accepted. The expected processing time is 6 to 12 months, and DFS will email a Notice of Complete Application when the file is ready for substantive review.
Keep three pieces of proof: the NMLS submission receipt, the DFS Portal confirmation, and the surety bond’s countersigned page. Each will be requested at examination, and missing proof can extend renewal cycles.
What Happens After You File
DFS opens an investigation that includes a fingerprint background check, a financial responsibility review, an AML manual review, and a cybersecurity assessment under Part 500. The first deficiency letter typically arrives 30 to 60 days after filing.
You respond to deficiencies by uploading corrected documents through NMLS and the DFS Portal. Each round adds time. Most applicants go through two to three rounds before DFS issues a Letter of Intent to Approve, which lists final pre-license conditions like funding the bond or hiring a named BSA Officer.
When all conditions are satisfied, DFS issues the license and posts your record on the DFS license lookup. You then begin filing quarterly call reports through NMLS, plus annual audited financials, and you must notify DFS within five days of any change of control under § 644-a.
A denial is rare but final. If denied, you can request a hearing under Banking Law § 44, but a fresh application after the deficiencies are cured is usually faster than a hearing.
Mistakes to Avoid When Filling Out the Form
- Listing a holding company as the applicant — the consequence is full withdrawal and refile because DFS licenses operating entities, not parents.
- Stopping the indirect ownership chain before reaching natural persons — the consequence is denial for failing to disclose control.
- Using a vendor’s template AML manual without tailoring — the consequence is a deficiency citing inadequate program design.
- Posting a generic surety bond rather than the DFS-approved form — the consequence is rejection and lost calendar weeks.
- Submitting reviewed or compiled financials instead of audited — the consequence is denial for insufficient financial responsibility.
- Naming an outside consultant as BSA Officer on MU1 §4 — the consequence is a deficiency requiring an employee replacement.
- Leaving residential gaps on any MU2 — the consequence is an automatic NMLS validation error.
- Forgetting to schedule fingerprints the same day as MU2 submission — the consequence is a 4 to 8 week background check delay.
- Checking every product box on the Supplemental Question form — the consequence is exam-scope expansion that adds months to review.
- Omitting wind-down details from the Business Plan — the consequence is a deficiency letter on consumer-protection grounds.
- Filing a Certificate of Good Standing older than 60 days — the consequence is a hold while you order a fresh certificate.
- Failing to register foreign entity status with the NY Department of State before filing — the consequence is an immediate deficiency.
Dos and Don’ts
- Do print the NY MT checklist and tick each line because examiners use the same list.
- Do match every name across NMLS, the IRS FEIN database, and your Certificate of Good Standing because DFS cross-checks all three.
- Do hire the BSA Officer before filing because DFS expects an employee in that seat.
- Do file the FinCEN MSB registration first because the FinCEN number is required on the Supplemental Question form.
- Do budget for 6 to 12 months of review because that is the realistic timeline.
- Do keep a board resolution authorizing the application because DFS asks for it during review.
- Don’t rely on a holding company’s audit because DFS audits the applicant entity.
- Don’t assume sealed or expunged matters are not disclosable because the disclosure questions ask broadly.
- Don’t use a virtual office address as your registered agent because the agent must be an in-state agent of record.
- Don’t post a stale surety bond because DFS verifies the date against the current filing.
- Don’t combine AML, OFAC, and Cybersecurity into one binder because DFS expects three separate programs.
- Don’t start transmitting before the license is issued because § 650 makes that a Class A misdemeanor.
Pros and Cons of Filing on Your Own vs. With Help
- Pro – DIY: Lower out-of-pocket cost because you pay only state and NMLS fees.
- Pro – DIY: Direct knowledge of your business helps tailor the AML and Business Plan because you know the product best.
- Pro – DIY: No reliance on outside calendars because you control submission timing.
- Pro – DIY: Stronger institutional memory at exam time because you wrote the manuals.
- Pro – DIY: Easier to revise products because you understand each commitment in the file.
- Con – DIY: Higher deficiency risk because first-time filers miss New York–specific items.
- Con – DIY: Slower turn-around on each round because you learn the system in real time.
- Con – DIY: Risk of a false statement finding because disclosure questions are tricky.
- Con – DIY: Bond and audit relationships take longer to establish because you have no introductions.
- Con – DIY: Fewer benchmarks against peer filers because you cannot see their files.
- Pro – With Help: Consultants and counsel know which deficiency letters DFS sends most often.
- Pro – With Help: Faster bond placement because surety brokers prefer represented filers.
- Con – With Help: Significant fees, often $75,000 to $200,000 for a complete first MTL.
- Con – With Help: Less institutional memory once the project ends.
- Con – With Help: Risk of template AML programs that DFS will flag as boilerplate.
Money Transmitter License vs. BitLicense
| Topic | New York Money Transmitter License |
|---|---|
| Statute | Banking Law Article 13-B |
| Regulation | 3 NYCRR Part 406 |
| Activity Covered | Fiat transmission, payment instruments |
| Filing System | NMLS plus DFS Portal |
| Application Fee | $3,000 NMLS plus $2,000 DFS investigation |
| Minimum Net Worth | $500,000 tangible |
| Surety Bond | $500,000 to $7 million |
| Typical Review Time | 6 to 12 months |
| Topic | New York BitLicense |
|---|---|
| Statute | Financial Services Law authority |
| Regulation | 23 NYCRR Part 200 |
| Activity Covered | Virtual currency business activity |
| Filing System | DFS Portal directly |
| Application Fee | $5,000 |
| Capital Requirement | Set case-by-case by Superintendent |
| Surety Bond | Set case-by-case |
| Typical Review Time | 12 to 24 months |
Key Agencies, Statutes, and Related Forms
The New York State Department of Financial Services is the issuing agency and the examiner. The Nationwide Multistate Licensing System is the filing platform run by the Conference of State Bank Supervisors. The Financial Crimes Enforcement Network receives MSB registrations and SAR filings under 31 USC § 5318.
Related forms include the MU1, MU2, MU3, the New York Supplemental Question form, and the Quarterly Call Report (MSB Call Report) once licensed. The BitLicense under 23 NYCRR Part 200 is the parallel virtual currency authorization, and the Cybersecurity Regulation under 23 NYCRR Part 500 imposes ongoing program duties.
The federal interaction includes FinCEN MSB registration, OFAC sanctions screening, and IRS Form 8300 for cash receipts above $10,000. The state interaction includes the New York Department of State for entity registration and the NY Division of Criminal Justice Services for state fingerprint background checks.
Recent DFS Guidance Filers Should Know
DFS has issued several Industry Letters that shape MTL filings, including guidance on virtual currency listing standards, transaction monitoring expectations under Part 504, and operational resilience expectations under Part 500. Each shapes the manuals you upload. Read them before drafting the AML and Cybersecurity Programs.
The Superintendent’s Industry Letters page is updated several times a year, and examiners expect your programs to reflect the most recent guidance. A program that ignores a fresh Industry Letter will draw a deficiency citing failure to keep current.
FAQs
Do I need a New York MTL if I only have a few New York customers?
Yes. New York’s engaged in the business test triggers licensure even at low volume, and there is no de minimis exemption.
Do I write my legal name or trade name in MU1 Section 1?
Yes, the legal entity name only. Trade names belong in Section 2, and entering a DBA in Section 1 will fail NMLS validation.
Is a BitLicense required if I already hold a New York MTL?
Yes, if you also conduct virtual currency business activity. The MTL covers fiat. The BitLicense covers crypto. Many filers hold both.
Do passive venture capital investors have to file an MU2?
Yes, if the fund or its general partner controls 10% or more, the GP files an MU2 and submits fingerprints.
Is the $500,000 minimum net worth measured at filing or at approval?
Yes, at both points. DFS verifies on filing and again before issuance, and a drop below the threshold can stall approval.
Do I need to register with FinCEN before filing the New York MTL?
Yes. The FinCEN MSB number is required on the New York Supplemental Question form, so register first.
Can I list a consultant as my BSA Officer in MU1 Section 4?
No. DFS expects an employee in the BSA seat, and naming a consultant draws an immediate deficiency.
Does sealed or expunged criminal history have to be disclosed on MU2?
Yes, when the question asks for all matters. Failure to disclose can be treated as a false statement and bar approval.
Is mail filing available for the New York MTL?
No. New MTL applications must be filed through NMLS, with supporting documents to the DFS Industry Portal.
Do I need a physical New York office to obtain the license?
No. A New York office is not required, but you must have a New York registered agent for service of process.
Can I begin transmitting once I submit the application?
No. Transmitting before approval is unlicensed activity under Banking Law § 650 and exposes the company to civil and criminal penalties.
Is the surety bond refundable if I withdraw the application?
No. The bond premium is paid to the surety. The bond can be canceled, but premium is generally non-refundable per the surety agreement.
Do I file an MU3 for remote employees in New York?
No, unless you maintain a public-facing office. Remote work is disclosed in the Cybersecurity Program rather than as a branch.
Will DFS accept reviewed financial statements instead of audited?
No. Audited financials are required, and reviewed or compiled statements draw a denial for insufficient financial responsibility.
Related reading
- How to Fill Out California DFPI Money Transmitter License Application + FAQs
- How to Fill Out New York DFS Individual Insurance Producer License + FAQs
- How to Fill Out New York DFS Public Adjuster License (w/Examples) + FAQs
- How to Fill Out New York DFS Virtual Currency License + FAQs
- How to Fill Out Michigan DIFS Money Transmitter License (w/Examples) + FAQs
- How to Fill Out the Washington DFI Money Transmitter License (NMLS Company Form MU1) + FAQs
- How to Fill Out the Washington OIC Surplus Line Broker License + FAQs