Almost all states require the regulation of money transmission
South Carolina is the 49th state to catch up to the rest of them with the Anti-Money Laundering Act. The act has been the focus of regulating crime, taking effect since June 9, 2016. The Act requires a surety bond provision for money transmitters by the state, which functions to protect the public from illegal transmission of money outside of the regulated market. If a South Carolina company is found to be transmitting money illegally, the bond will pay out any claims made by an injured party. This law keeps money launderers directly accountable.
Money Transmitters are supposed to transfer money and payment as an intermediary step of online transactions. The money transmitted is meant to be recorded; this provides evidence in the event of a crime. Legally compliant companies practice the transfer of money through their online platform, including big names like Facebook and MoneyGram.
Under the Act, transmitters will need to become licensed
The licensing application requires the following information:
- Applicant’s name, business and residential addresses and any trade names used in conducting business
- Any criminal convictions or material litigation the applicant has been involved in in the preceding ten years
- Description of money services the applicant has previously provided, and of services they intend to provide
- Name and address of any bank through which the applicant’s payment instruments or stored value will be paid
- Description of the source of money and credit the applicant will use to provide services
- Nonrefundable $1,500 application fee
- Licensing fee of $750—will be refunded if the application is denied
You may apply for your South Carolina money transmitter license with the Attorney General and those resources may be found on their Government Website.
The application process requires the purchase of a $50,000 surety bond–you may not obtain your money transmitter license without it.
Contact the South Carolina Office of the Attorney General with questions about the new regulations. The experts at Surety1.com can help you get bonded in South Carolina. Surety1 can help you get a money transmitter bond in all 50 states as well!