To obtain a money transmitter license, every licensee must post a Massachusetts Money Transmitter Bond. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license. Regardless of what it is called, surety1.com offers all of the individual state bonds.
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. A bond is not insurance; the bond does not offer protection for the business owner, the bond offers protection to the state.
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 provide you with the most competitive quote from on of our 15 surety bond markets. All quotes are free and carry no obligation to purchase the surety bond.
In order to get your money transmitter’s business license, you’ll need a bond.
Under Chapter 169 of the Massachusetts General laws, all money transmitters in Massachusetts are required to file a surety bond in order to be licensed. Money transmitters conducting business with foreign countries must be bonded and licensed.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
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 license application must list all of the following:
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 Massachusetts 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.
Visit the checklist for new money transmitter license applications at NMLS.
At surety1.com we make it easy to apply for this and all your surety bond needs. Simply complete our easy to navigate, online application and usually within one business day one of our surety bond professionals will contact you with a free, no obligation quote. Occasional, additional underwriting information will be required by the surety bond company. If necessary, your agent will work with you as needed to secure a firm quote.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier provider of surety bonds nationwide since 2003.