A Tennessee Money Transmitter Bond is a type of surety bond and is just one of the requirements to obtain a Money Transmitter License in the state of Tennessee. 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. While the license is required by the Tennessee Department of Financial Institutions, the license administration is handled via the Nationwide Mortgage Licensing System (NMLS).
The Tennessee Money Transmitter License authorizes the following activities:
A check list of the requirements to obtain the license can be found here.
The Tennessee Money Transmitter Bond is required 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.
In order to get your money transmitter’s business license, you’ll need a Tennessee Money Transmitter Bond in the amount of $50,000 for 1 location. Each additional location requires an increase in the bond amount of $10,000 up to a maximum bonda mount of $800,000. Any entity that engages in the business of money transmission and provides such services to Tennessee
residents, unless certain exemptions apply, must be licensed in Tennessee. This means that even if one does not a physical location in the state but provides money transmission activities in the state, a license is required. The applicant should verify the bond amount with the obligee (Tennessee Department of Financial Institutions) before applying for the bond to ensure the bond amount is correct. This bond ensures compliance with the laws of the Tennessee Code Annotated 45-7-201 along with other Tennessee state laws.
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
Once these steps have been completed, Surety1.com will file the Tennessee Money Transmitter Bond electronically directly with the NMLS.
(1) The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
(2) Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.
