What is a Washington Money Transmitter Bond?
Get acquainted with this licensure requirement for money transmitters in Washington!
A licensed money transmitter in Washington is required to maintain a surety bond.
The said requirement is enforced by the Washington State Department of Financial Institutions in compliance with the Uniform Money Services Act.
A money transmitter is a person who is engaged in the business of transmitting money to another location – whether inside or outside of the United States – through a wire, facsimile, or electronic transfer.
What is the bond amount?
The minimum bond amount is $10,000, and the maximum bond amount is $550,000.
Your bond amount will be calculated based on your previous year’s money transmission dollar volume and your last year’s payment instrument dollar volume.
It will be calculated at $10,000 for every $1,000,000. The table below will serve as an example for the bond amount:
For example, your previous year’s (12 months) money transmission and payment instrument dollar volume are $5,400,000, the minimum bond amount you need to secure is $60,000.
Those who have excellent credit scores may qualify for a very low bond premium or just 1% of the bond amount!
Find out what need to pay by getting your FREE quote here!
What are the bond conditions?
- The surety bond company should be authorized to do business in the State of Washington
- The Money Transmitter licensee is obligated to comply with the provisions of the Uniform Money Services Act and all the other rules and regulations that govern money transmitters in Washington
- If the Money Transmitter licensee commits a violation, the aggrieved party may be eligible to file a claim on the bond
- The bond should cover claims for at least five years after the date of a money transmitter licensee’s violation of Chapter 19.230 of the Revised Code of Washington, or after five years following the date when the money transmitter licensee ceases conducting money services in Washington, whichever is longer.
- The Director of Financial Institutions may issue a temporary cease order if the money transmitter does not maintain a surety bond
- The Director of Financial Institutions may increase the bond amount to $1,000,000 for the following conditions:
- Reduction of net worth
- Financial losses
- Potential losses due to violations of RCW 19.230
- The bond will remain valid until canceled. In case of cancellation, a 30-day notice is required
How can I acquire Washington Money Transmitter Bond?
To secure this type of bond, you must seek the assistance of a surety bond company such as Surety Bond Authority.
First, you need to submit a bond application.
Once the application is received, one of our expert surety bond agents will guide you through the whole process – from application until submission. We will make sure that you understand all the conditions before the bond is issued.
An underwriter will then evaluate the following:
- Your financial strength
- Your job 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 your bond? Call us now!