Fintechs, money service businesses get boost from Tennessee, six other states02.09.18
Tennessee entered into an agreement this week with six other states that could help streamline the licensing process for money service businesses, according to an announcement from the Tennessee Department of Financial Institutions.
MSBs have gained more attention lately, as they encompass many innovative fintech startup companies, such as cryptocurrency exchanges.
The agreement is intended to help standardize the MSB licensing process and is open to any state that wishes to participate voluntarily in the program. In short, if one state "reviews key elements of state licensing for a money transmitter, the other participating states agree to accept the findings," according to the Conference of State Bank Supervisors.
Current states in the program are: Georgia, Illinois, Kansas, Massachusetts, Tennessee, Texas and Washington. This announcement represents the first step in moving towards a 50-state system of licensing and supervision for fintechs, according to the CSBS.
Each state will still need to review applications individually for unique standards, including requirements as to the net worth of the person applying for the license.
MSB applicants interested in taking advantage of this approach should contact Nicole Chamblee, Assistant Commissioner, Compliance Division, Tennessee Department of Financial Institutions at 615-532-1020 or Charles Clark, Agency Deputy Director & Director of Consumer Services, Washington State Department of Financial Institutions at 360-902-0511.
The pilot for this program will begin later this spring.
Please contact Marc Adesso or Wes Scott of Waller’s Capital Markets practice, Chris Philips of Waller’s payments practice or Rob Harris of Waller’s Financial Services practice with any questions regarding MSB licensing.