A Pennsylvania Money Transmitter Bond is required for any business that transmits money in the state of Pennsylvania. This includes businesses that send money, receive money, or both.
The Pennsylvania Money Transmitter Act defines a money transmitter as any person or business that:
- Receives money in Pennsylvania for transmission to another location.
- Receives money in another location for transmission to Pennsylvania.
- Provides check cashing services for a fee.
- Provides money orders or traveler’s checks for a fee.
- Provides prepaid access services.
The purpose of the Pennsylvania Money Transmitter Act is to protect consumers from fraud and other financial losses. The Act requires money transmitters to be licensed and bonded. The bond is a financial guarantee that the money transmitter will comply with all applicable laws and regulations and will not misappropriate any money that is transmitted.
The amount of the Pennsylvania Money Transmitter Bond is determined by the Pennsylvania Department of Banking and Securities based on the applicant’s financial condition and the volume of money they anticipate transmitting. However, the bond amount must be at least $50,000.
How to get a Pennsylvania Money Transmitter Bond
At surety1.com we make it easy to apply for this, and all your surety bond needs:
- 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 Pennsylvania 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).
After completing these steps, your Pennsylvania Money Transmitter Bond will be shipped to you for the required signature. Once signed, upload the bond in NMLS under Surety Bond in the
Document Uploads section of the Company Form (MU1).
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.
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. The bond does not protect the licensee, it is not insurance. The bond is in place as a method of prequalification for the license.
How Much Will the Bond Cost?
The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.
How to Get a Money Transmitter License in Pennsylvania
The license application is managed by the Nationwide Mortgage Licensing System (NMLS) .Here are the steps on how to get a Money Transmitter License in Pennsylvania:
1. Determine if you need a license:
The first step is to determine if you need a Money Transmitter License in Pennsylvania. This will depend on the type of money transmission services you offer. If you transmit money in Pennsylvania, you will need a license.
2. Meet the eligibility requirements:
To be eligible for a Money Transmitter License in Pennsylvania, you must meet the following requirements:
- Be at least 18 years old
- Be a U.S. citizen or lawful permanent resident
- Have a clean criminal record
- Have a sound financial condition
- Have a business plan that outlines your money transmission activities
- Have an office in Pennsylvania
3. Submit an application:
Once you have determined that you need a license and meet the eligibility requirements, you can submit an application to the Pennsylvania Department of Banking and Securities. The application must include the following information:
- Your business name and address
- The name and contact information of your business principals
- A copy of your business plan
- A copy of your financial statements
- A statement of your business operations
- A list of the money transmission services you offer
- A copy of your surety bond
4. Pay the application fee:
The application fee for a Money Transmitter License in Pennsylvania is $2,500.
5. Pass an examination:
You will also be required to pass an examination that covers the laws and regulations governing money transmission in Pennsylvania.
6. Obtain a Pennsylvania Money Transmitter Bond:
You will need to obtain a surety bond. The amount of the bond will be based on your financial condition and the volume of money you anticipate transmitting.
7. Maintain compliance:
Once you have obtained your Money Transmitter License, you will need to maintain compliance with all applicable laws and regulations. This includes filing annual reports, maintaining accurate records, and cooperating with audits.
Here are some additional tips for getting a Money Transmitter License in Pennsylvania:
- Start the application process early. The application process can take several months, so it is important to start early to avoid any delays.
- Gather all required documentation. Be sure to gather all required documentation before you begin the application process. This will help to ensure that your application is processed smoothly.
- Follow all instructions carefully. Be sure to follow all instructions carefully to avoid any mistakes.
- Contact the Pennsylvania Department of Banking and Securities if you have any questions. The Pennsylvania Department of Banking and Securities is available to answer any questions you have about the application process.
Learn more at PA.gov, and see a checklist for new money transmitter license applications from NMLS.