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
In order to get your money transmitter’s business license, you’ll need a bond.
This bond ensures the money transmitter will comply with Section 85: 15-3 of the Oklahoma Administrative Code as well as other Oklahoma state laws.
- Required by: Oklahoma Banking Department
- Minimum bond amount: $50,000 + $10,000 for each additional location
- 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.)
License fees required by the obligee include:
- $2,000 license fee for the principle and an additional $50 fee for each delegate.
- $3,00 application/investigation non-refundable fee
The obligee requires all licensing fees, not the surety company
Also, the applicant must maintain a net worth of $275,000.
Information that must be included on the license application includes:
- Legal name and residential address of applicant
- List of the transmitter’s authorized delegates
- Surety bond
- Location where the authorized delegates will conduct money transmission business
- Detailed description of prior, current, and planned money transmission business of the principle
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 Oklahoma 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.