Minnesota requires a Money Transmitter License from the Department of Commerce for fintechs transmitting money in the state. This guide covers requirements, bond amounts, fees, and the full application process.
How to Get a Money Transmitter License in Minnesota
Minnesota is an important Midwest market with a significant financial services sector — particularly in Minneapolis, home to multiple major financial institutions. If your fintech transmits money in Minnesota, here's the complete guide.
Does My Fintech Need a Minnesota Money Transmitter License?
Under Minnesota's Money Transmitter Act (Minn. Stat. § 53B), any person or entity engaged in the business of money transmission in Minnesota must be licensed by the Minnesota Department of Commerce. This includes receiving, transmitting, and exchanging money or monetary value.
Standard exemptions apply for banks and other regulated entities.
Key Requirements at a Glance
Minnesota has relatively accessible minimum requirements, making it a manageable license to obtain.
What You'll Need to Apply
Business Documentation
- Certificate of good standing from your home state
- Articles of incorporation or organization
- Organizational chart and ownership list
- Three years of financial statements
- Business plan with projected Minnesota transaction volume
- Description of money transmission activities
Individual Background Checks
All controlling persons must complete MU2 forms and submit fingerprints.
Surety Bond
A minimum $25,000 surety bond naming the State of Minnesota as obligee.
AML Compliance Program
Minnesota requires submission of your written AML/BSA compliance program.
How to Apply Through NMLS
Minnesota uses NMLS. Complete your MU1 and MU2 forms, upload Minnesota-specific documents, submit fingerprints, and pay the application fee. Monitor for Department of Commerce deficiency letters.
Minnesota in a Multi-State Licensing Strategy
Minnesota is typically included in the second or third tier of a national licensing rollout — after the largest coastal states. For fintechs focused on Midwest expansion, Minnesota is often paired with Ohio, Michigan, and Missouri in the same application phase.
Frequently Asked Questions
Does Minnesota have crypto-specific licensing?
Minnesota applies existing money transmission laws to fiat-involving cryptocurrency transactions. Consult Department of Commerce guidance and legal counsel.
What are ongoing reporting requirements in Minnesota?
Licensed money transmitters must file annual reports with the Department of Commerce showing transaction volumes and financial condition, and renew their license annually through NMLS.
This article is for educational purposes only. Verify current requirements directly with the Minnesota Department of Commerce and on NMLS before filing.
