An applicant for a money transmitter license in Minnesota must comply with Minn. Stat. §53B.05 net worth requirements. Under Minnesota law, each licensee engaging in money transmission in three or fewer locations in the state, either directly or through authorized delegates, must have a net worth of at least $25,000. However, if a licensee engages in money transmission at more than three locations in the state, but fewer than seven locations (either directly or through authorized delegates), he must have a net worth of at least $50,000. If there are more than six locations in the state, the licensee should have a net worth of $100,000 and an additional net worth of $50,000 for each location or authorized delegate located in the state in excess of seven, to a maximum of $500,000. The net worth is calculated in accordance with generally accepted accounting principles (“GAAP”).
The required net worth must be maintained throughout the licensed period. Failure to meet the statutory net worth requirement may lead to license revocation and denial of the license renewal application. Minn. Stat. §53B.19 (2).
The burden of proof is on the initial licensee. This means that when the applicant files its money transmitter license application for the very first time, he must prove by preponderance of evidence that he satisfies the net worth requirements and any other issues raised by the Minnesota Department of Commerce (“Department”). When an application for license renewal is filed, however, the issue of who bears the burden of proof is not yet settled by courts. There is a very good argument that the Department bears the burden of proof once the initial burden of production is satisfied by the applicant. Sherayzen Law Office can help you make this argument once the need arises.
It is very important to hire a Minnesota attorney to review your license application. The regulatory compliance costs are very high and making sure that your application satisfies the statutory requirements prior to its filing may be crucial to containing legal expenses and even ultimate ability to obtain (for the first time) or renew the license.
If, however, you submit your license application without professional review of a Minnesota attorney and the Department raises issues with respect to the application, it is indispensable to retain a Minnesota business lawyer as soon as possible. Timely professional intervention may lead to quick resolution of the issues and led to significant savings in accounting and legal expenses.
Sherayzen Law Office can help you file a new license application as well as a renewal application. If your application has been rejected and you appeal the case with the Office of Administrative Hearings, Sherayzen Law Office will provide you with a vigorous yet cost-effective legal representation. Call our office at (952) 500-8159!