Massachusetts Money Transmitter Bond
A quick guide to the money transmitter surety bond in Massachusetts!
What is a Money Transmitter Bond?
Under Chapter 169 of the Massachusetts General Laws, all money transmitters that transmit money to foreign countries must furnish a sufficient surety bond.
A surety bond is a prerequisite for a money transmitter license in the Commonwealth of Massachusetts.
The surety bond will serve as an assurance to the Massachusetts Office of Consumer Affairs and Business Regulation that the licensed money transmitter will lawfully:
- Transmit money from the United States to foreign countries
- Engage in the business of sale or issuance of checks and other instruments of value
It will be conditioned that the surety bond will cover the amount required to compensate any person who will suffer damages from the potential misconduct of the licensed money transmitter.
When this happens, the Obligee will be able to recover the amount through a bond claim.
What is the Money Transmitter Bond amount?
The bond amount will vary per license applicant. This will be determined by the Commissioner of Banks.
The bond amount will be equal to twice the average weekly amount of money or equivalents thereof transmitted to foreign countries by the money transmitter.
However, the minimum bond amount will be $50,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium, or just 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I obtain a Money Transmitter Bond?
You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
Here’s how to do get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety bond agent or company should be authorized to conduct business in the Commonwealth of Massachusetts
- The licensed Money Transmitter is required to comply with the provisions of Chapter 169 and Chapter 167f of the Massachusetts General Laws as well as the rules and regulations of the Massachusetts Office of Consumer Affairs and Business Regulation
- If the licensed Money Transmitter commits a valid violation, the aggrieved party will be eligible to file a claim against the surety bond