What is the New Mexico Money Transmitter Bond?
As mandated by the Financial Institutions Division of the New Mexico Regulation and Licensing Department, all those who engage in money transmission services operating within the state are obligated to post the New Mexico Money Transmitter Bond.
This is a reliable and fail-safe guarantee aimed at protecting all consumers and the state that in the operations of money transmission, a licensed money transmitter will rigorously meet all the terms contained in the money conveyance trade registration requisites and observe the provisions laid down in the New Mexico Money Transmitters Law.
If and when appropriate 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 New Mexico Money Transmitter Bond?
The New Mexico Transmitter Bond is tremendously indispensable if you want to be recognized as a money transmitter of reliability and uprightness. As you are a business engaged in the trade of funds transfer, your clients must know that you are operating your business by 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 that could be translated into lasting trust and confidence for your business.
More details about the New Mexico Money Transmitter Bond
The New Mexico Money Transmitter Bond is a product of the ratification of the Uniform Money Services Act. The bond shall remain enforceable and valid 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 New Mexico Regulation and Licensing Department Head.
What is the cost of a New Mexico Money Transmitter Bond?
The New Mexico Money Transmitter Bond amount is established by knowing the amount of business entered into by the money transmitter. In particular, the bond must be more than $300,000 or 1% of the aggregate yearly dollar volume of business in the state. The law stipulates that the bond amount shall not exceed $2,000,000 unless the money transmitter’s financial condition is unsatisfactory or problematic, in which case, the bond amount may be set as high as $5,000,000.
The Bond premium amounts vary and are 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 New Mexico Money Transmitter Bond?
Obtaining the New Mexico 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 certified surety bond practitioner and be afforded the professional treatment you rightly deserve.