Louisiana Money Transmitter Bond

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

In order to get your money transmitter’s business license, you’ll need a bond.

• Required by: Office of Financial Institutions
• Minimum bond amount: $25,000
• Maximum bond amount: Varies
• Valid: 1 year- expires December 31st of each year

This surety bond type ensures the money transmitter will comply with all laws stated in Title 6, Chapter  13 of the Louisiana Revenue Statues. Violation of the surety bond will result in revocation of the license and bond.

The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.

 

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 be eligible to apply for a license, the applicant must have a net worth of $100,000.
• Information that must be provided on the application is the legal name and place of residence for each ownership position of the business.
• A non-refundable investigation fee of $3,000 is required by the obligee. If the obligee finds the applicant is not credible, a licensed cannot be achieved.

The license fees are not charge by the surety company; they are charged by the obligee.

The license application can be filled out using an electronic system referred to as NMLS. Although, businesses that are not conducting multi-state businesses, or those that do not want to use the electronic application system, can also have access to other application forms.

Money transmitters in Louisiana 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.

Learn more about the money transmitter license requirements and see a checklist for new applications from the NMLS.