To obtain a money transmitter license, every state requires a surety bond. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license.
Why Do I Need This Bond?
A surety bond is made to protect the public. In basic terms, it guarantees your business will adhere to all laws and requirements in your industry. In the event your business conducts unlawful acts, a consumer of your services may file a claim on the bond.
Nearly any company that offers payment services requires a money transmitter bond. Due to a history of fraudulence and inaccurate money transmissions, state agencies now require this bond to protect consumers. While this bond does not protect the business owner, it offers proof that your business handles clients’ money responsibly.
How Much Will the Bond Cost?
The cost of the bond, the “premium,” depends largely on the bond amount and the applicant’s financial status. The state requiring the bond determines the amount. At Surety 1, we will find you the lowest quote for your bond, starting at only 1.5% of the bond amount.
Money Transmitter Bond
The Money Transmission Act Chapter 668 Section 36a of the Connecticut Statues requires a bond to be filed in order for a license to be acquired.
In order to get your money transmitter’s business license, you’ll need a bond.
- Required by: Connecticut Banking Commissioner
- Minimum bond amount: $300,000
- Maximum bond amount: $1,000,000
- Valid: 1 year-renewable
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
This bond guarantees the money transmitter will comply with the Money Transmission Act Chapter 668 Section 36a of the Connecticut Statues.
Money Transmitter License
These are additional details about the licensing process that you should be aware of. (Only the bond is handled at Surety1, but this information will help you get your license.)
Licensing needs to be renewed either annually or bi-annually depending on the state.
Materials needed to apply for a license:
- Application licensing fees
- Complete application package turned in to NMLS
- Applicant’s most recent audited unconsolidated financial statement.
- Surety Bond
- Maintenance of permissible investments
- Tax id
- Social security number
- Name and business address
- Certificate of good standing
- Criminal background check
The license application can be filled out using an electronic system referred to as NMLS. Although, for businesses that are not conducting multi-state businesses or do not want to use the electronic application system can also have access to other application forms.
In addition, every transmitter must register at Financial Crimes Enforcement Network (FinCEN) through its BSA e-filing system. FinCEN is a part of the U.S. Department of Treasury. Registration with FinCEN is valid for 2 years.
View the Money Transmission Act Chapter 668 Section 36a of the Connecticut Statues.
See the new application checklist from NMLS.