Georgia Money Transmitter Bond

A Georgia money transmitter bond is a type of surety bond  required by the Georgia Department of Banking and Finance for businesses operating as money transmitters. The minimum bond amount is $250,000; however, the bond amount can be as much as $2,000,000. The cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Georgia Money Transmitter Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Surety Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Note: It requires exceptional financial assets to provide a surety bond for Money Transmitters dealing in Crypto Currency 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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About the Money Transmitter License

While the license is required by the Georgia Department of Banking and Finance, license application and administration is done through the Nationwide Mortgage Licensing System (NMLS).  The Georgia Money Transmitter Bond will be filed electronically by Surety1 directly with the NMLS.  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.

Bond Amount

The minimum bond amount is $250,000. If

1. the average daily outstanding balances for payment instrument sellers exceed the current bond amount,
2. the average daily outstanding orders to transmit not yet paid for money transmitters exceed the current bond amount,
3. or the department determines that additional coverage is necessary in order to satisfy the department that the provisions of subsection (a) of Code Section 7-1-684 are fulfilled

the bond amount can be increased up to a maximum of $2,000,000.

A licensee’s level of outstanding balances or orders is determined by the portion of the licensee’s financial reports dealing with transactions originating in Georgia.

What is considered a money transmitter in Georgia?

“Money transmission” 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;
  • A wire;
  • A facsimile; and
  • An electronic transfer;
• Selling or issuing payment instruments, including the creation, issuance, or sale of a payment instrument that is redeemable in cash or monetary value; and
• Payroll processing services.

The term “Money Transmitter” does not include closed loop transactions, which are transactions where the value or credit is primarily intended to be redeemed for a limited universe of goods, intangibles, services, or other items provided by the issuer of the payment instrument, its affiliates or agents, or others involved in the transaction functionally related to the issuer or its affiliates or agents.

How to Get a Georgia Money Transmitter License

Getting a Georgia Money Transmitter License involves several steps through the Nationwide Multistate Licensing System (NMLS). Here’s a breakdown of the process:

1. Apply Through NMLS: The Georgia Department of Banking and Finance uses NMLS to manage all Money Transmitter licenses. You’ll need to create an NMLS account and initiate a new application specifically for a Georgia Money Transmitter License.
2. Complete the Application: The NMLS application will require detailed information about your business, including:
   • Business Structure (LLC, Corporation etc.)
   • Ownership details and background checks for principal owners and managers
   • Financial statements
   • Business plan outlining your money transmission services
3. Obtain a Georgia Money Transmitter Bond: As mentioned earlier, you’ll need to acquire a surety bond in the amount determined by the Department of Banking and Finance (minimum $250,000, maximum $2 million).
4. Pay Fees: There are application and licensing fees associated with the process. These fees are paid through NMLS and are non-refundable.
5. Submit Application: Once you’ve completed the application, obtained the bond, and paid the fees, you can submit everything electronically through NMLS.

Additional Resources:

• Georgia Department of Banking and Finance – Money Transmitters: https://dbf.georgia.gov/money-service-businesses/money-transmitters
• NMLS Money Transmitter Licensing: https://mortgage.nationwidelicensingsystem.org/Pages/default.aspx (This website doesn’t process applications, but has general information)
• GA Money Transmitter License New Application Checklist

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.

Visit our State by State Guide to Money Transmitter Bonds

Visit the Department of Banking and Finance website for more information.