Vermont Money Transmitter Bond

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.

• Required by: Banking Division of the  Vermont Department of Financial Regulation
• Minimum bond amount: $100,000
• Maximum bond amount: $2,000,000
• 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.

Each additional business location requires a an additional bond amount of $10,000. The state of Vermont requires this additional bond amount.

The bond ensures the principle will comply with Title 8 Chapter 79 of the Vermont Statutes along with other Vermont state Laws.

 

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:

1. Legal name and residential address of applicant
2. Detailed description of previous, current, and planned money transmission activities of applicant
3. List of all authorized delegates of business
4. Surety bond
5. Minimum net worth of $100,000
6. Any supporting documents the Commissioner requires
7. List of all business locations where the applicant and delegates conduct money transmission business
8. $1,000 non-refundable application fee
9. Mandatory investigation of the applicant

All license fees are 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 Vermont 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.

See a checklist for new money transmitter license applications from NMLS.