Money Transmitters

Beginning July 1, 2026, the Non-Depository Division of the Office of Financial Institutions began licensing, regulating, and supervising Money Transmission licensees operating within the State of Louisiana under the Louisiana Money Transmission Act (“LMTA”).  The LMTA replaces the Louisiana Sale of Check and Money Transmission Act (“SOCMTA”), which was enacted in 1966.  Enactment of the LMTA, which is based primarily on the CSBS Model Money Transmission Modernization Act (“MTMA”), ensures a strong state system of financial regulation that reduces regulatory burden, eliminates inefficiencies, and improves the overall effectiveness of the state system.

The following are key terms defined in Section 1033 of the LMTA:

  1. “Money transmission” means any of the following:
    1. Selling or issuing payment instruments to a person located in this state.
    2. Selling or issuing stored value to a person located in this state.
    3. Receiving money or monetary value for transmission from a person located in this state.
  1. “Payment instrument” means a written or electronic check, draft, money order, traveler’s check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable. “Payment instrument” does not include stored value or any instrument that is either of the following:
    1. Is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.
    2. Is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
  1. “Stored value” means monetary value representing a claim against the issuer evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services. “Stored value” includes but is not limited to “prepaid access” as defined by 31 CFR 1010.100, as amended or recodified from time to time.
    1. Notwithstanding Subparagraph (2) of this Paragraph, “stored value” does not include a payment instrument or closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
  1. “Receiving money for transmission” or “money received for transmission” means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means.
  1. “Person” means an individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other legal entity, or any individual or group of individuals, however organized.
    1. “Person” does not include a public corporation, government, or governmental subdivision, agency, or instrumentality.
  1. “Resident” means any of the following:
    1. A person who is domiciled in this state.
    2. A person who is physically located in this state for more than one hundred eighty-three calendar days of the previous three hundred sixty-five calendar days.
    3. A person who has a place of business in this state.
  1. “Resident” includes a legal representative of a person who meets one of the criteria provided for in Subparagraph (6) of this Paragraph.

The following are key requirements for licensure under the LMTA:

  1. Applicants/licensees must utilize the Nationwide Multistate Licensing System and Registry (“NMLS”) for all aspects of licensing, including but not limited to license applications, applications for acquisition of control, surety bonds, reporting, and criminal background checks.
  1. Applicants/licensees must provide and maintain at all times a surety bond in the minimum amount of $100,000, up to a maximum of $500,000, issued by a bonding company or insurance company authorized to do business in this state and in a form satisfactory to the Commissioner, or a higher amount deemed appropriate by the Commissioner based on evidence that the licensee’s financial condition is impaired or that the protection of the public so requires, up to a maximum of $1,000,000. 
  1. Applicants/licensees must maintain at all times a tangible net worth of the greater of $100,000 or 3% of total assets for the first $100,000,000, 2% of additional assets for $100,000,000 to $1,000,000,000, and .5% of additional assets for over $1,000,000,000.  Tangible net worth shall be demonstrated at initial application by the applicant’s most recent audited statements, and all licensing requirements, including renewals, relative to tangible net worth shall be evidenced at the time of initial application for licensure and renewal, maintained at all times during licensure and renewal, and reported annually to the Commissioner. 
  1. Applicants/licensees must list/report information relating to their authorized agent consistent with NMLS licensing standards and practices.  Licensees must submit a report of their authorized agent within 45 calendar days of the calendar quarter — utilizing the NMLS Uniform Authorized Agent Reporting process. Licensees must adopt, and update as necessary, written policies and procedures designed to ensure that authorized agents comply with applicable state and federal law; conduct a reasonable risk-based background investigation that is sufficient to determine whether the authorized agent has complied and will likely comply with applicable state and federal law; implement and maintain a reasonable risk-based supervision program to monitor its authorized agents; and enter into a written contract that complies with the requirements of the LMTA.  The Commissioner may suspend or revoke the designation of an authorized agent under certain circumstances.
  1. Applicants/licensees must pay an initial licensure fee of $1,500, an annual renewal fee of $800, plus an annual renewal fee of $100 for each location in excess of one in the State of Louisiana — not to exceed $6,000.  Other fees include a late renewal fee of $600 and a change of control fee of $1,500.  Licensees must also pay an examination fee of $50 per/hour per/examiner, plus actual expenses, for out-of-state examinations.  Licensees that fail to pay their examination fees within 30 calendar days of their assessment, shall be subject to an administrative penalty.
  1. Licensees must maintain, at all times, permissible investments that have a market value computed in accordance with United States Generally Accepted Accounting Principles of not less than the aggregate amount of all its outstanding money transmission obligations in all states.
  1. Licensees must maintain separate books, records, and accounts of their money transmission activities as the Commissioner may reasonably require in order to determine compliance with the provisions of the LMTA and the rules and regulations related thereto.  Such records, as detailed in the LMTA, must be maintained for at least 5-years in written or electronic form, may be located outside of this state if they are made accessible to the Commissioner upon proper notice, and must include written policies and procedures sufficient to ensure compliance with the LMTA and all other applicable laws and regulations.

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