Nevada Money Transmitter Bond

A Nevada Money Transmitter Bond is a type of surety bond required by the Nevada Financial Institutions Division (FID) for any entity that processes or transmits money within the state. It serves as a financial guarantee that the entity will comply with all applicable state laws and regulations related to money transmission activities. while the license is required by the FID, it is administered and issued by the Nationwide Mortgage Licensing System (NMLS)

The license authorizes the following activities:

• Bill paying
• Electronic money transmitting
• Issuing and/or selling drafts
• Issuing money orders
• Issuing prepaid access/stored value
• Selling prepaid access/stored value
• Selling money orders
• Issuing traveler’s checks
• Selling traveler’s checks
• Virtual currency exchanging and trading services

How to get a Nevada Money Transmitter Bond

At Surety1.com, surety bonds are all we do so we strive to simplify the process of getting bonded. The process to obtain the required surety bond is:

1. Complete our easy to navigate and secure online application ¹
2. Usually within one business day, one of our surety bond professional agents will contact the applicant to discuss the information required by the surety underwriters to gain an approval for the bond.
3. Review the free, no obligation quote.
4. Sign dome paperwork and make payment for the bond.

Once these steps have been completed, the original Nevada Money Transmitter Bond will be shipped for signature. Once signed the surety bond Upload in NMLS: under
Surety Bond in the Document Uploads section of the Company Form (MU1).

^{1 – The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

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.

Visit our State-by-State Guide to Money Transmitter Bonds

Required Bond Amount

The required amount of the Nevada Money Transmitter Bond is the greater of:

• $100,000; or
• An amount equal to 100 percent of the average daily money transmission liability in this state calculated for the most recently completed quarter, to a maximum of $500,000.

The cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

Why Do I Need This Bond?

The primary purpose of the Nevada Money Transmitter Bond is to protect consumers and the state from potential financial losses arising from the activities of money transmitters. It provides a financial safeguard in case a money transmitter fails to fulfill its obligations, such as:

• Paying out customer money when requested.
• Adhering to state licensing and regulatory requirements.
• Resolving consumer complaints and disputes.

The bond also incentivizes money transmitters to operate responsibly and ethically, as they are aware of the potential financial consequences of non-compliance. If the surety company pays a claim on the bond, it will seek restitution from the bond principal (licensee).

Steps to Obtain a Nevada Money Transmitter License

1. Meet Eligibility Requirements: Before embarking on the licensing process, ensure your business meets the eligibility criteria set by the Nevada Financial Institutions Division (FID). This includes
   • being a legal entity
   • having a physical presence in Nevada
   • maintaining adequate financial resources.
2. Complete the Application Form: The initial step is to fill out the Money Transmitter License Application Form (MU-1 Form) through the Nationwide Multistate Licensing System and Registry (NMLS). This form requires detailed information about your business, including its structure, ownership, financial statements, and operational plans.
3. Submit Required Documentation: Along with the application form, you must provide supporting documentation to verify your business’s legitimacy and compliance. This typically includes:
   • Certified copy of your business entity’s formation documents
   • Business license or registration certificate
   • Federal Employer Identification Number (FEIN)
   • Audited financial statements
   • Background checks for all key personnel
   • Detailed business plan outlining your money transmission activities
4. Pay Application Fees: The application process involves non-refundable fees, which vary depending on the type of money transmitter license you seek. These fees cover the administrative costs of processing your application.
5. Pass Fingerprints and Background Checks: You and your designated responsible individuals must undergo fingerprinting and background checks to ensure you meet the suitability standards set by the FID. These checks are conducted through a designated vendor approved by the FID.
6. Schedule an Interview: Upon successful completion of the background checks, you may be invited for an interview with the FID to discuss your business operations and ensure compliance with all applicable regulations.
7. License Approval and Issuance: Once the FID has thoroughly reviewed your application, supporting documents, background checks, and interview, they will make a decision regarding your license approval. If approved, you will receive your Nevada Money Transmitter License.

The license application is processed and completed via the Nationwide Mortgage Licensing System (NMLS).   Money transmitters in Nevada 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 at the State of Nevada Department of Business & Industry – Financial Institutions.