Pennsylvania requires a Money Transmitter License from the Department of Banking and Securities for fintechs transmitting money in the state. This guide covers Pennsylvania's requirements, including its significant bond and net worth requirements.
How to Get a Money Transmitter License in Pennsylvania
Pennsylvania is home to Philadelphia, Pittsburgh, and a significant fintech presence. If your company transmits money in Pennsylvania, you need a license from the Pennsylvania Department of Banking and Securities (DoBS) — and you need to plan for one of the country's highest bond requirements.
Does My Fintech Need a Pennsylvania Money Transmitter License?
Under the Pennsylvania Money Transmitter Act (7 Pa. C.S. §§ 2101–2193), any person or entity engaged in money transmission in Pennsylvania must be licensed. Money transmission includes receiving money for transmission, transmitting money by any means, and in some cases issuing stored value.
Standard exemptions apply for banks and other regulated entities.
Key Requirements at a Glance
Pennsylvania's $1,000,000 surety bond requirement is one of the highest in the country. This is a critical planning consideration. A $1M surety bond costs approximately $10,000–$30,000 annually in premiums depending on your credit profile.
What You'll Need to Apply
Business Documentation
- Certificate of good standing
- Articles of incorporation or organization
- Full organizational chart with ownership percentages
- Three years of audited financial statements
- Business plan with projected Pennsylvania transaction volumes
- Description of your money transmission products and services
Individual Background Checks
All principals and controlling persons must complete MU2 forms and submit fingerprints for background checks. Pennsylvania is rigorous in its background review process.
Surety Bond
A $1,000,000 surety bond naming the Commonwealth of Pennsylvania as obligee. Begin your surety bond process early — underwriting for a bond of this size requires financial documentation and may take several weeks.
Financial Statements
Although there is no specific statutory net worth minimum, Pennsylvania DoBS examines your financial statements thoroughly for evidence of financial stability.
AML Compliance Program
Submit your written AML/BSA compliance program with the application.
How to Apply Through NMLS
- Create or log in to your NMLS account
- Complete MU1 and MU2 forms
- Upload all Pennsylvania-specific required documents
- Submit fingerprints
- Pay the application fee
- Respond promptly to DoBS deficiency letters
Ongoing Compliance After Approval
- Annual license renewal through NMLS
- Annual reporting of Pennsylvania transaction volumes and outstanding liabilities
- Bond maintenance — $1M bond must remain in force
- Material change notifications to DoBS
- Periodic examinations — DoBS conducts examinations of licensees
Pennsylvania in a Multi-State Licensing Strategy
Given the $1,000,000 bond requirement, Pennsylvania requires significant capital planning. Most fintechs address Pennsylvania in the second or third tier of their national licensing rollout — after initial capital is established and other state licenses are obtained. If Pennsylvania is a critical market for your business, it should be budgeted from your initial capitalization planning.
Frequently Asked Questions
Why does Pennsylvania require a $1,000,000 bond?
Pennsylvania's legislature set this level to ensure strong consumer protection for the state's significant population of money transmission users. It reflects both the state's consumer protection philosophy and the volume of transmission activity in the state.
Can I get a Pennsylvania MTL as a startup with limited revenue?
Yes, if you can meet the bond requirement and demonstrate financial stability through your financial statements. Some newer companies use letters of credit or other financial instruments in place of traditional surety bonds — consult your bonding company.
This article is for educational purposes only. Verify current requirements directly with the Pennsylvania DoBS and on NMLS before filing.
