XTRM is not a bank. We are partner licensed and regulated in all regions as a Money Service/Money Transmitter business. Funds are protected in two ways:

 

1.      Federal regulation

2.      By State

 

Under State regulation, we have to hold significant funds in a surety bond to protect client funds.

 

Partner Licence information can be provided on demand.



Partner 

'XTRM Partner' is licensed and regulated as a money transmitter, or its equivalent, by all regulatory agencies, both state and federal, posted on the Compliance and Legal section of the company’s webpage. In addition, in order to provide its products and services to individuals, 'XTRM Partner'has submitted a money transmitter application with the following regulatory agency; Massachusetts Office of Commissioner of Banks. As 'XTRM Partner' does not hold a money transmitter license in Massachusetts, the Company is only able to provide its products and services to business clients. Any outstanding obligation from clients located in these states are reported to the California Department of Business 


Oversight

As a license requirement, 'XTRM Partner' is required to own eligible securities having an aggregate market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding payment instruments obligations issued or sold by the Company and all outstanding money received for transmission by the Company. Eligible securities, even if commingled with other assets of the Company, are deemed to be held in trust for the benefit of the purchasers and holders of the Company’s outstanding payment instrument and stored value obligations, and all senders of outstanding money received for transmission, in the event of bankruptcy or receivership of the Company, or in the event of an action by a creditor against 'XTRM Partner' who is not a beneficiary of this statutory trust. This requirement is scrutinized with regularity through examinations, audits, and periodic reporting obligations. As such, 'XTRM Partner' maintains at all times permissible investments that have an aggregate market value computed in accordance with generally accepted accounting principles of not less than the aggregate amount of all its outstanding payment instruments and other transfers. Furthermore, as a license requirement or licensing application process, 'XTRM Partner' currently maintains surety bonds in all jurisdictions where licensed, for the benefit of its clients. The proceeds from these bonds are to be used only in the event of insolvency or bankruptcy by 'XTRM Partner'.