What is a South Dakota Money Transmitter Bond?
Brisk transformations in the financial sector, most especially for money transmitters, involve modern ground-breaking methods in which there is an emergence of processes, such as virtual currency and crowdfunding. These unconventional businesses have no indications of stopping. However, they come with more inspection and analysis from the government. It is this development that the Money Transmitter Bond is crucially indispensable.
The South Dakota 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 South Dakota Money Transmitters Law.
The South Dakota Money 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.
More details about the South Dakota Money Transmitter Bond
Before getting bonded, a licensee must continuously own adequate investments, must go through a state and federal criminal background check through fingerprinting by the Division of Criminal Investigation and the Federal Bureau of Investigation, must be permanently possess a net worth of not less than $100,000, must have reputable standing in the state where it is incorporated, and must be qualified to carry out business transactions in the state of South Dakota.
How much does a South Dakota Transmitter Bond cost?
The South Dakota Money Transmitter Bond is for $100,000.
The South Dakota Money Transmitter Bond premium amounts vary and are extensively dependent 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.
The bond shall remain enforceable and effective for the whole duration of the money transmission license unless canceled by 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 South Dakota Banking Division.
How do I get a South Dakota Money Transmitter Bond?
Obtaining the South Dakota Money 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.
Contact authentic surety bond practitioners to avoid having your business launch stalled. Choose also one who can provide you fast and efficient bonds.