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. In Michigan, a Michigan Money Transmission Services License is required and to obtain the license, one must provide a Michigan Money Transmitter Bond. The license is administered by the Nationwide Mortgage Licensing System (NMLS). The application and bond are submitted electronically directly with the NMLS.
Who Is Required to Have This License?
All entities providing money transmission services must obtain a money transmitter license under the Money Transmission Services Act (Act), 2006 PA 250 and comply with the provisions of the Act. “Money transmission services” is defined as the selling or issuing of payment instruments or stored value devices or the receiving of money or monetary value for transmission. Michigan participates in the Multistate Money Services Businesses Licensing Agreement Program (MMLA), which creates a more efficient money service business licensing process among state regulators. If your company is seeking money transmitter licensure in more than five (5) states, participation in the MMLA may be right for you. See the Multistate MSB Licensing Agreement Program page of the NMLS Resource Center for more information.
If a person or entity is holding a Class I license under the Consumer Financial Services Act, you do not have to obtain this license.
Money Transmitter Bond
To ensure the Michigan Money Transmission Services Act is followed, a surety bond is required by the obligee for all money transmitters in Michigan.
- Required by: Michigan Department of Insurance and Financial Services
- Michigan Money Transmitter Bond in the amount of $500,000 for first location, plus $10,000 for each additional location and authorized delegate up to a maximum amount of $1,500,000.
- Valid: 1 year – expires December 31st of each year.
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.)
Licensing requirements include:
- Description of any money services the applicant has offered clients in the past and will plan to offer in the future
- Michigan Money Transmitter Bond
- Net worth of at least $100,000 plus $25,000 per location up to a maximum net worth requirement of $1,000,000.
- MI License/Registration Fee: $3,050
- MI Application Fee: $600
- License Fee Per Additional Location: $50
All licensing fees and license requirements are the domain of the state of Michigan, not the surety company.
How to Obtain a Michigan Money Transmitter Bond
At Surety1.com we make it as easy as possible to obtain the required surety bond:
- Complete our easy to navigate and secure online application. One application can be used for multiple states. 1
- Usually within one business day, one of our professional surety bond agents will contact you to discuss the additional underwriting requirements of the surety. 2
- Review your free, no obligation quote.
- Sign some paperwork and make payment.
Once these steps have been completed, the Michigan Money Transmitter Bond will be filed electronically by Surety1 directly 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 – Surety1.com represents over a dozen different surety bond companies. The underwriting requirements for bonds of this size will include additional financial disclosures and may vary by company. Your professional surety bond agent will discuss the options with you and assist in obtaining a bond approval at a competitive price with the most reasonable terms available.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.