What is an Oklahoma Money Transmitter Bond?
Funds transfers can posit so many money laundering possibilities as money associated with illegal activities may go unnoticed because of the massive amounts involved and the enormous volume of transactions that take place. These cash transmissions can be utilized to filter earnings from various types of criminal activities, such as drug trafficking and human smuggling, via a method known as structuring. For instance, a sender may organize remittances by breaking up a transaction into numerous transactions to circumvent the $3,000 funds transfer threshold. For a money transmitter to engage in illegal activities such as this, is one big reason why the Money Transmitter Bond exists.
The Oklahoma Money Transmitter Bond is a reliable and fail-safe guarantee aimed at protecting all consumers and the state. It is a commitment 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 within the Oklahoma 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 Oklahoma Money Transmitter Bond.
Why do you need an Oklahoma Money Transmitter Bond?
The Oklahoma 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, it is vital that your clients 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.
How much does an Oklahoma Money Transmitter Bond cost?
The Oklahoma Transmitter Bond is for $50,000, with an additional $10,000 for each location, not amounting to more than $500,000.
The bond shall remain enforceable and effective for the whole duration of the money transmission license unless canceled by the surety agency. The surety may conditionally cancel this bond at any time by providing that a 30-day written notice of the bond’s termination is sent to the Oklahoma Banking Commissioner.
The Oklahoma Transmitter Bond premium amounts vary and are significantly reliant on your financial strength demonstrated by your 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 an Oklahoma Money Transmitter Bond?
Obtaining the Oklahoma Transmitter Bond is trouble-free. Once required documents have been submitted and inquiries answered, the surety bond company will conduct a preliminary assessment. Based on the outcomes of the appraisal, your money transmitter bond application will either be approved, or you will be requested to present additional documentation to aid the underwriting process.