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. Any person, regardless of the location of that person, its facilities, or its agents, who receives directly or indirectly and by any means, money or its equivalent for transmission from a person located in Ohio is required to have this license. To obtain this license, the applicant must provide a Ohio Money Transmitter Bond. This is a type of surety bond and it is filed electronically with the Nationwide Mortgage Licensing System (NMLS).
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.
Money Transmitter Bond
In order to get your money transmitter’s business license, you’ll need a bond.
- Required by: Ohio Superintendent of Financial Institutions
- Ohio Money Transmitter Bond amount: $300,000
- Valid: 1 year-renewable
This bond guarantees compliance with Chapter 1315 of the Ohio Revised Code Annotated along with other laws of Ohio. The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Prerequisites for Licensure
- Have a net worth of at least $500,000
- Not have any suspended payments
- Run their business legally
- Be a legally established business entity in Ohio
- Allow the superintendent to make observations
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.)
License application requirements:
- Applicants must provide their legal name and residential address.
- Information such as the business location and the business URL must be given on the application.
- A notary public must witness all signatures on the license application.
- There is a non-refundable license filing and investigation fee which is 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 Ohio must also register as a money services business (MSB) with the Federal Crimes Enforcement Network (FinCEN).
How to obtain a Ohio Money Transmitter Bond
Representing over a dozen surety bond companies, Surety1.com makes it easy to obtain this surety bond. We offer a single Money Transmitter Bond Application for all states and provide world class service. The process to obtain the bond is as follows:
- Complete our easy to navigate and secure, online application 1
- One of our surety bond agents will be in touch with you to complete the process, usually within one business day. For the Ohio required bond amount, additional financial disclosures, similar to what needs to be provided to the State, will be required by the surety to obtain the bond.
- Review your free, no obligation quote.
- Sign some paperwork and make payment (all major credit cards accepted).
Once these steps have been completed, your bond will be filed electronically with the NMLS.
1. The name on the bond application must match exactly the full legal name of the applicant for a money transmitter license, including any other trade names.
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 and maintains an A+ rating from the Better Business Bureau.