What is a Mississippi Money Transmitter Bond?
A quick guide to the money transmitter surety bond in Mississippi!
The role Money Transmitters play in the lives of consumers is undeniably important, most especially in terms of global remittance.
Over $100 billion in remittances are sent to various countries from the United States each year.
As part of the top 5 regulated Money Services Businesses (MSB), Money Transmitters are required to be licensed as well as post a financial guarantee: a surety bond.
A surety bond is a prerequisite for those who are intending to become licensed Money Transmitters in Mississippi. The state law dictates that every application should be accompanied by a surety bond.
The surety bond will serve as an assurance to the Mississippi Department of Banking and Consumer Finance that the Licensed Money Transmitter will lawfully:
- Transmit within the country or outside of the United States the money received
- Engage in the business of sale or issuance of checks
The surety bond will also cover any damages that have been caused by the Money Transmitter’s misconduct to its client or clients.
The requirement complies with Section 75-15-11 of the Mississippi Code Annotated or the Mississippi Money Transmitters Act.
What is the Money Transmitter Bond amount?
$25,000 – Minimum bond amount
$500,000 – Maximum bond amount
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
What are the bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Mississippi
- The Commissioner of Banking and Consumer Finance of the State of Mississippi may increase the bond amount if such conditions occur:
- Reduction in the required net worth
- Financial losses
- The Licensed Money Transmitter is required to comply with the provisions of Section 75-15 of the Mississippi Code Annotated or the Mississippi Money Transmitters Act, the rules and regulations of the Mississippi Department of Banking and Consumer Finance, and all the other applicable rules
- If the Licensed Money Transmitter commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- In case of cancellation, a 60-day notice is required
How can I obtain a Money Transmitter Bond?
By following the simple steps below!
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
Ready to apply? START HERE!