One of the requirements to obtain a money transmitter license, is a Indiana Money Transmitter Bond. This is a type of surety bond and is required by the Indiana Department of Financial
Institutions. 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 Indiana, while the bond is a requirement of the Indiana DFI, the license application is processed by the Nationwide Mortgage Licensing System (NMLS). In Indiana a money Transmitter license is required of:
Any entity that engages in the business of selling or issuing payment instruments primarily for personal, family, or household purposes. Money transmissions performed by an entity from an office or place of business, or internet, wherever located (inside or outside the United States) by any means, including but not limited to a payment instrument, wire, facsimile, or electronic transfer would be considered money transmission activity.
A physical presence, such as an office in Indiana and/or the use of Indiana agents or authorized delegates, is not a pre-requisite for money transmission activity that requires licensure in the state. For a complete check list of the requirements to obtain the necessary license, click here.
Before submitting an application, please ensure that your consumer purpose money transmission activities meet the definition of money transmission as defined by Indiana Code 28-8-4-13. Also, please review the Indiana Money Transmitters Act, specifically: Indiana Code Sections 28-8-4-10, 29-8-4-15, and 28-8-4-19.5.
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.
In order to get your money transmitter’s business license, you’ll need a bond.
This bond guarantees that the money transmitter will follow Title 28 Chapter 4 of the Indiana Code along with other state laws and regulations.
At Surety1.com we make it easy to apply for your Surety Bond:
Once these steps have been completed, the Indiana Money Transmitter Bond will be filed electronically by Surety1.com with the NMLS.
The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required.
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. We also maintain an A+ rating from the Better Business Bureau.