What is a Minnesota Money Transmitter Bond?
Each Money Transmitter license applicant in the State of Minnesota is required to submit a surety bond along with their application.
The prerequisite is adopted from § 53B.08 of the Minnesota Statutes and is enforced by the Minnesota Department of Commerce.
The surety bond will serve as an assurance that all the money deposited to the Money Transmitter will be properly transmitted.
A Money Transmitter is a person who is engaged in the business of transmitting money within the state, the whole country, or internationally.
This includes wire, payment instrument, facsimile, or electronic transfer.
What is the bond amount?
The minimum bond amount is $25,000. The maximum bond amount is $250,000.
$50,000 – the Money Transmitter’s locations are more than 3, but less than 7.
If your business reaches 6 locations, an additional $50,000 is required for each succeeding location after the 6th.
Those who have excellent credit scores may qualify for a very low bond premium or just 1% of the bond amount!
Find out what you need to pay by getting your FREE quote here!
What are the Money Transmitter bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Minnesota such as Surety Bond Authority
- The surety bond should be made payable to the State of Minnesota
- The surety bond must be written in the form acceptable to the Commissioner of Commerce
- The Money Transmitter licensee is obligated to abide by the provisions of § 53B of the Minnesota Statutes, the rules and regulations of the Minnesota Department of Commerce, and all the other applicable rules that govern money transmitters in Minnesota
- If the Money Transmitter licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- The surety bond will remain valid until canceled. In the case of cancellation, a 30-day notice is required.
How can I obtain this type of bond?
To secure this type of bond, the Money Transmitter license applicant or licensee must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so here.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Are you ready to start on this bond? Apply HERE!