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.
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.
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.
In order to get your money transmitter’s business license, you’ll need a bond.
The Hawaii Department of Commerce and Consumer Affairs should be contacted before application for a surety bond in order to ensure the bond amount is correct.
The bond is required in order to ensure money transmitters will abide by the laws in Chapter 489D of the Hawaii Money Transmitters Act along with other relevant laws in Hawaii.
The bond continues to be in full force until it is cancelled. However, if the surety company or the principle decide to cancel the bond, the obligee must be notified of the cancellation within 30 days.
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 apply as a general money transmitter, several fees and documents are required. Here is a list of some of the required documents and fees for the license application:
The licensing fees are required by the obligee, not the surety company.
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.
Money transmitters in Hawaii must also register as a money services business (MSB) with the Federal Crimes Enforcement Network (FinCEN). The registration process must be completed by the Bank Secretary Act (BSA) e-filing system.