To obtain a money transmitter license, each licensee must post a New Jersey Money Transmitter Bond, or Foreign Money Transmitter Bond. Every state requires a surety bond for money transmitters. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license.
“Money Transmitter” means a person who engages in this State in the Business of:
“Foreign Money Transmitter” means a person who engages, in this State, only in the business of the receipt of money for transmission or transmitting money to location outside of the United State by any and all means including but not limited to payment instrument, wire, facsimile, electronic transfer, or otherwise for a fee, commission or other benefit.
In order to get your money transmitter’s business license, you’ll need a bond.
This bond ensures money transmitters will conduct business in compliance with Section 17:15 1C of the New Jersey Statues Annotated, the Money Transmitters Act, along with other applicable New Jersey state laws.
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. The bond does not offer protection to the licensee, it is not insurance. 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.
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.)
All licensing fees are required by the obligee, not the surety company.
Money transmitters in New Jersey 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.
At Surety1.com we make it easy to apply for this, and all you surety bond needs:
Once these steps have been completed, the surety bond will be shipped for the required original signature. Once signed, the original New Jersey Money Transmitter Bond must be sent to:
STATE OF NEW JERSEY
DEPARTMENT OF BANKING and INSURANCE LICENSING SERVICES BUREAU
PO Box 473
Trenton, NJ 08625
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