DFS SUPERINTENDENT VULLO ANNOUNCES ENHANCED PARTICIPATION IN STATE-BASED NMLS PLATFORM TO FURTHER DEVELOP REGULATION OF THE FINANCIAL SERVICES INDUSTRY
Financial Services Superintendent Maria T. Vullo today announced that, starting July 1, 2017, the Department of Financial Services (DFS) will be transitioning to the Nationwide Multistate Licensing System and Registry (NMLS) to manage the license application and ongoing regulation of all nondepository financial institutions doing business in New York. NMLS was created by the State Conference of Bank Supervisors (CSBS) and began operations in January 2008. DFS strongly supports CSBS efforts such as Vision 2020 and currently employs NMLS to manage and regulate mortgage providers licensed in New York. This usage will be expanded, in stages, to all nondepository insitutions, commencing with money transmitters.
“DFS is proud to expand its use of NMLS, bringing the efficiencies and improved oversight of NMLS to additional financial services industries,” said Financial Services Superintendent Maria T. Vullo. “By working with the CSBS, which is leading the modernization of state regulation through Vision 2020, DFS is supporting the strong nationwide regulatory framework created by states to provide improved licensing and supervision by State regulators. The success and effectiveness of the NMLS platform is just one more example of the superiority of the state-based financial services regulatory system in protecting consumers and fostering industry innovation.”
NMLS is a secure, web-based, nationwide licensing system that allows companies to apply for, update, and renew their licenses in one or more states conveniently and safely online. NMLS will allow DFS to provide better supervision of the money transmitter industry by linking with other states to protect consumers.
Currently, sixty-two state agencies use NMLS to accept and process license applications and registrations.
Commencing on July 1, 2017, financial services companies holding New York money transmitter licenses will have the opportunity to transition those licenses to NMLS and companies applying for new licenses will be able to apply through NMLS. DFS will send letters to each licensee with detailed instructions for transitioning their company and branches onto NMLS and licensees will be provided with training on NMLS use.
More information about NMLS can be found online on the NMLS Resource Center.