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 NC, to obtain a money transmitter license one must post a North Carolina Money Transmitter Bond. The license administration is conducted by the Nationwide Mortgage Licensing System (NMLS). the required surety bond is filed electronically with the NMLS by Surety1.com.
* NC has a separate Check Cashing License. Contact the NC Commissioner of Banks for more information.
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.
The cost of the bond, the “premium,” depends largely on the bond amount and the applicant’s financial status. Surety1.com represents over a dozen surety companies and will shop for the most competitive rate available for the bond.
The amount of the surety bond depends on the annual volume in the state in the previous year.
|Amount of NC Volume||Surety Bond Amount|
|Up to $1,000,000||$150,000|
|$1,000,001 to $5,000,000||$175,000|
|$5,000,001 to $10,000,000||$200,000|
|$10,000,001 to $50,000,000||$225,000|
|More Than $50,000,000.00||$250,000|
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct. The North Carolina Money Transmitter Bond guarantees the money transmitter will comply with the North Carolina Money Transmitters Act. Failure to comply will result in suspension or revocation of the license and cancellation of the surety bond.
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.)
The licensing fees are required by the state of North Carolina, 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 North Carolina 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 North Carolina Commissioner of Banks, and see a checklist for new money transmitter license applications from NMLS.
At surety1.com we make it as painless as possible to obtain the necessary surety bonds:
One these steps have been completed, your bond will be filed promptly with the NMLS by Surety1.com.
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.