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: Wyoming Division of Banking
• Minimum bond amount: $10,000 or equivalent to the last 2.5 outstanding payments
• Maximum bond amount: $500,000
• Valid: 1 year-renewable

The bond amount is determined by the Wyoming Commissioner of Banking.

This bond guarantees the principle will comply with the Money Transmitter Act in Title 40, Chapter 22 of the Wyoming Statutes.

If the bond is cancelled, the Commissioner of Banking must be notified of the cancellation within 30 days of the cancellation.

Violation of the bond includes:

• Conducting business in an unsafe and illegal manner
• Inadequate net worth of principle
• Principle refuses to allow Commissioner to conduct investigations of the principle

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 Requirements:

1. Net worth of at least $25,000
2. Federal EIN
3. Business location
4. Clearing bank name and address
5. 5 year history of criminal convictions and material litigation
6. Sample form of payment instrument
7. $1,5000 non-refundable licensing fee

Al licensing 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 Wyoming 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.