What is the Kansas Money Transmitter Bond?
As mandated by the Office of the State Bank of Kansas Commissioner, all those who engage in money transmission services operating within the state are obligated to post the Kansas Money Transmitter Bond.
This is a trustworthy and foolproof guarantee intended to safeguard all consumers and the state that in the conduct of money transmission, a licensed money transmitter will meticulously comply with all the terms contained in the money transport trade registration requirements and conform with all of the provisions laid down within the Kansas Money Transmitters Act.
If and when suitable transmission of money has not been complied with, the party whose money was mismanaged or misused will be compensated through the bond.
Why do you need the Kansas Money Transmitter Bond?
The Kansas Transmitter Bond is an immensely vital tool if you want to be acknowledged as a money transmitter of dependability and honor. As you are an establishment engaged in the trade of funds transfer, your clients must be aware that you are operating your business in accordance with the state’s money transmission laws and all other regulations applicable to the industry of money transfer. This will give your clients peace of mind which could be translated into enduring faith and confidence for your business.
More details about the Kansas Money Transmitter Bond
To obtain this bond, one needs to be licensed first, and to be able to get a license in Kansas for money transmitter business, one needs to have a minimum net worth of $250,000.
The bond shall remain enforceable and effective for the whole duration of the money transmission license unless canceled by the surety agency. Surety Company may conditionally cancel this bond at any time by sending a 30-day written notice of the bond’s termination to the Commissioner of the Office of the State Bank of Kansas.
What is the cost of a Kansas Money Transmitter Bond?
The Kansas Money Transmitter Bond amount can vary and may range anywhere between $200,000 and $350,000, as established by the obligee.
Similarly, its premium payments amount fluctuates and is significantly reliant on the money transmitter’s personal financial strength demonstrated by his/her credit score. Due to the risks involved in this transaction, the actual rate of the bond premium is higher than most surety bonds.
How do I get a Kansas Money Transmitter Bond?
Obtaining the Kansas Transmitter Bond is simple. Once required documents have been submitted and inquiries answered, the surety bond company will conduct a preliminary assessment which doesn’t take so much time. Based on the outcomes of the appraisal, the money transmitter bond application will either be approved or the licensee will be requested to present additional documentation to aid the underwriting process. For faster results, choose a genuine surety bond practitioner so that you can be afforded the professional treatment you rightly deserve.