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
This bond ensures compliance with Chapter 13-09 of the North Dakota Century Code along with other laws in North Dakota.
In order to get your money transmitter’s business license, you’ll need a bond.
- Required by: North Dakota Department of Financial Institutions
- Minimum bond amount: $150,000
- Maximum bond amount: Varies
- Valid: 1 year-renewable
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
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.)
- Legal name and residential address of applicant
- Detailed description of current, past, or planned business activities
- Criteria for a mandatory investigation
- Bank information of where the funds will be stored
- Sample of contract if applicable
- Net worth of at least $100,000
- Surety bond
- Initial license fee of $1,000
- $500 application fee plus $10 for each additional location
- Non-refundable $450 mandatory investigation fee
The obligee requires all the license fees, 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 Dakota 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 Dakota Department of Financial Institutions, and see a checklist for new money transmitter license applications at NMLS.