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: New Hampshire Department of Banking
- Minimum bond amount: $100,000
- Maximum bond amount: Varies
- Valid: 1 year – expires December 31st of each year
In order for money transmitters to comply with Chapter 399-G of the New Hampshire Revised Statutes and other New Hampshire state laws, this surety bond is required.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Violation of the surety bond which are listed below will result in revocation of a license.
- Making false claims to the Commissioner
- Failing to meet standards in Chapter 399-G
- Engaging in dishonest practices of money transmission
- Violating federal laws
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.)
Requirements for Licensing:
- Minimum net worth of $1,000,000
- Applicant’s tax identification number
- Statement of net worth
- Surety bond
- Business address
- Application and investigation fee of $500 for each location + $25 for each authorized delegate registration
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 New Hampshire 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 New Hampshire Banking Department, and see a checklist for new money transmitter license applications.