New York Money Transmitter Bond

Ultimate Guide to New York Money Transmitter License & Bond Requirements

If you’re planning to operate as a money transmitter in New York, you’ll need a New York Money Transmitter License and a New York Money Transmitter Bond (also referred to as a Bond, New York Instruments). This guide covers everything you need to know about the licensing process, bond requirements, costs, and how to apply.

What Is a New York Money Transmitter Bond?

A New York Money Transmitter Bond is a type of surety bond required by the New York Department of Financial Services (NY-DFS) to obtain a money transmitter license. This bond ensures compliance with state laws and protects consumers from financial harm due to fraudulent or unethical business practices.

Why Do You Need a Money Transmitter Bond?

• Consumer Protection: The bond guarantees that your business follows legal and ethical standards when handling customer funds.
• Legal Requirement: New York mandates this bond under Article 13-B of the New York Banking Law (BL §641(1)).
• Fraud Prevention: Due to past cases of financial misconduct, the state requires this bond to minimize risks for consumers.

Surety Bond Cost

The bond premium (cost) depends on:

• Bond amount (minimum $500,000, but may vary based on business size)
• Applicant’s credit score & financial strength
• Typical Bond Premium Rates – 1% – 3% of the total bond amount

Example: A $500,000 bond may cost $5,000 – $15,000 annually

How to Get Your New York Money Transmitter Bond

At Surety1, we streamline the bonding process:

1. Complete Our Online Application – Fast, secure, and easy.
2. Receive a Free Quote – Our agents will contact you, usually  within 1 business day.
3. Review & Sign – No obligation; competitive rates.

Submit Your Bond – Once approved, we’ll ship the bond for signing.
Upload your bond in NMLS: under Surety Bond in the Document Uploads section of the Company Form (MU1).

Note: The New York Money Transmitter Bond must also be mailed to the NY-DFS.

Important Notes:

• The bond must be active and continuous (auto-renews unless canceled).
• Violations (fraud, exceeding transaction limits, criminal activity) can lead to license revocation & bond cancellation.

New York Money Transmitter License Requirements

Before applying for the bond, you must meet the state’s licensing requirements. The license application is submitted through the Nationwide Mortgage Licensing System (NMLS).

Activities Covered by the License

The New York Money Transmitter License authorizes businesses to conduct:

• Bill payments
• Issuing/selling money orders & drafts
• Selling prepaid access/stored value
• Electronic money transmitting
• Foreign currency exchange
• Issuing traveler’s checks

Key Licensing Requirements

• Business details (legal name, addresses, locations where records are kept)
• New York Money Transmitter Bond (minimum $500,000)
• Licensing fees (paid to NY-DFS, not the surety company)
• Registration as a Money Services Business (MSB) with FinCEN (via BSA e-filing)

Why Choose Surety1 for Your Money Transmitter Bond?

• A+ Rated by the Better Business Bureau (BBB)
• Fast, hassle-free application process
• Competitive rates from top surety markets

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.

Get Bonded Today & Start Your Money Transmitter Business!

 Apply Online Now

Need Money Transmitter Bonds in Other States?  Check out our State-by-State Guide to Money Transmitter Bonds.