The Depository Division of the Office of Financial Institutions regulates the Sale of Checks and Money Transmission licensees operating within the state of Louisiana. As defined in the law, "sell" means to sell, to issue or to deliver a check. A "check" means any check, draft, money order or other instrument for the transmission or payment of money. "Deliver" means to deliver a check to the first person who, in payment for same, makes or purports to make a remittance of or against the face amount thereof, whether or not the deliverer also charges a fee in addition to the face amount, and whether or not the deliverer signs the check. A "personal money order" means any instrument for the transmission or payment of money in relation to which the purchaser or remitter appoints or purports to appoint the seller thereof as his agent for the receipt, transmission or handling of money, whether such instrument is signed by the seller or by the purchaser or remitter or some other person. “Money transmission” means to engage in the business of selling or issuing payment instruments, selling or issuing stored value, or receiving money or monetary value for transmission including electronic transmission, to a location within or outside of the United States.
Requirements for licensure as a sale of checks/money transmission licensee include:
1) A surety bond, cash or securities in the amount of $25,000 or higher amount deemed appropriate by the commissioner based upon the applicant’s business plan. Law provides further bonding requirements at renewal time.
2) A financial statement certified to as correct by an owner, principal, officer, or director of the applicant reflecting a net worth of at least $100,000.
3) A business plan which includes, at a minimum, anticipated volume for the calendar year, and the anticipated number of selling locations. And,
4) An initial license fee of $300 plus $25 for each selling location; provided, however, the total license fee shall not exceed $3000. Same fee schedule applies at renewal.
Records of each licensee shall be maintained separate from all other business records and are subject to OFI’s Record Retention Policy # SC-01-04. These records are subject to inspection by our office at any time.
Last updated September 11, 2014