To obtain a money transmitter license in Georgia, you must provide a Georgia Money Transmitter Bond. Every state requires a surety bond for money transmitters. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license. In Georgia, a money transmitter is defined as:
Engaging in the business of receiving money or monetary value for transmission or transmitting money or monetary value within the United States or to locations abroad by any and all means, including, but not limited to an order, wire, facsimile, or electronic transfer.
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.
Georgia requires this bond so the money transmitter is in compliance with 7-1-680 through 692 of the Official Code of Georgia Annotated along with other check cashing and money transmission business laws.
Money Transmitter Bond
In order to get your money transmitter’s business license, you’ll need a bond.
- Required by: Georgia Department of Banking and Finance
- Minimum bond amount: $100,000
- Maximum bond amount: $2,000,000
- Valid: Continuous until cancelled
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
The Department of Banking and Finance must be notified of bond cancellation. Cancellation becomes effective 30 days after the notice of cancellation is received by the Department.
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.)
In order to receive a license, several supporting documents must be provided by the applicant.
- Legal name and office address of corporation
- Surety bond
- Legal name and residential address of applicant
- Date and location of incorporation for any official or director that will be selling checks in Georgia
- Any financial statements or records the department may require
- $2,000 application fee
- $200 investigation fee
All licensing fees are required by the obligee, not the surety company.
A criminal background check is mandatory with the application process. Licenses expire December 31 of each year, so renewal applications must be completed and submitted by December 1. The obligee requires this, not the surety company.
Before money transmitters in Georgia can receive a license, they need to register as a money services business (MSB) with the Federal Crimes Enforcement Network. Registration is completed through the (BSA) e-filing system.
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.
How to apply for a Georgia Money Transmitter Bond
At surety1.com we make it easy to apply for this, and all surety bonds. Simply complete our east to use, online application to obtain a free, no obligation quote. One application can be used for all states. Depending on the aggregate bond amounts, the underwriters may require additional information. Not to worry, one of our professional surety bond agents will walk you through the process.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003.
Visit the Department of Banking and Finance website for more information.
See a checklist for new money transmitter license applications.