The Maryland Money Transmitter Bond is an electronically filed surety bond in the amount of $150,000. While the license and surety bond is required by the Maryland Commissioner of Financial Regulation, the administration and application for the license are managed by the Nationwide Mortgage Licensing System (NMLS). 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. Click here for a state by state guide to money transmitter bonds.
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, this surety bond guarantees the principle will abide by all laws and regulations stated in Financial Institutions Title 12, Subtitle 4 of the Annotated Code of Maryland.
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 represent over a dozen, A rated surety bond companies to make sure we can get you the bond at a competitive rate.
The bond is continuous until cancelled, and if it is cancelled, the Office of Financial Regulation must be notified that it is cancelled within 30 days of cancellation.
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.) The obligee requires many supporting documents and fees with the license application, Including:
- Certificate of good standing from Maryland
- A detailed business plan
- Financial statements
- Surety bond
- Credit report
- Proof of at least 3 years experience in money transmission or a related business
- $2,000 non-refundable license fee
- $1,000 non-refundable investigation fee
All licensing fees are required by the obligee, not the surety company. For a complete checklist of license requirements, click here.
If the application is filled out incorrectly or not turned in on time, the Commissioner has the legally ability to terminate the application. Lack of a surety bond is a term for termination of the license application, so it is crucial to be bonded before license application. The license application must be completed in the NMLS portal. 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 Maryland 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.
How to Obtain a Maryland Money Transmitter Bond
At surety1.com, we make it easy to apply for this, and all your surety bond needs. Our simple, 3 step process is:
- Complete our easy to navigate and secure online application.1
- Review the free, no obligation quote from one of our surety bond professional agents, usually within 1 business day.2
- Sign some paperwork and pay the bond premium.
Once these steps have been completed, Surety1.com will file the Maryland Money Transmitter Bond electronically with the NMLS.
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.
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.