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Georgia Money Transmitter and Seller of Payment Instruments Bond

A money transmitter in Georgia hands money to a client

Georgia's Department of Banking and Finance (DBF) regulates and licenses financial institutions and financial service providers in the state. This includes Money Transmitters and Seller of Payment Instruments (otherwise known as check sellers).

A money transmitter is a person or business that transmits money for another person within in the U.S. or abroad by any means including an order, wire, facsimile, or electronic transfer.

A seller of payment instruments is in the business of selling or issuing payment instruments that include checks, money orders, drafts, stored value cards, and open loop transactions. A license for seller of payment instruments also allows the license holder to conduct money transmissions.

Applications for a license are made through the Nationwide Multistate Licensing System (NMLS).

Obligee and Surety Bonds:

The Department of Banking and Finance in Georgia is the obligee that requires money transmitters and sellers of payment instruments to obtain a surety bond. Money transmitters must have a bond of at least $100,000, and sellers of payment instruments must have a bond of at least $250,000. Additional coverage may be required by the Department, not to exceed $2 million.

License Requirements:

Fees include a $250 initial investigation fee, $900 annual license fee, $15 credit report for each control person, $100 NMLS processing fee, and $36.25 FBI criminal background check for MU2 individual. The Uniform Authorized Agent Reporting Annual Processing fee is $.25 for each active authorized agent/delegate location reported through the NMLS. There is no fee for the first 100 active agents reported, and the fee is capped at $25,000 per license in any one year.

According to Georgia law, applicants who have failed to repay student loans, or have been found to be in noncompliance with an order to pay child support can have an application denied.

Application Requirements in NMLS (Nationwide Multistate Licensing System & Registry):

Submission of Company Form (MU1)
Financial Statements
Authorized Agents (Delegates) Locations - applicants must submit a list of agents who are authorized to conduct money transmissions in Georgia on the applicant's behalf. The form must be updated on a quarterly basis.
Other Trade Name/DBA: if operating under a name that is different from the applicant's legal name
Resident/Registered Agent - must be located in Georgia
Primary Contact Employees
Disclosure Questions with an explanation for each "yes" answer.
Control Person (MU2) Attestation
Credit Report of Control Person
MU2 Individual FBI Criminal Background Checks
Electronic Surety Bond for at least $100,000 for Money Transmitters, and $250,000 for Sellers of Payment Instruments. The Department can require additional coverage up to $2 million.
Formation Documents
Certificate of Authority/Good Standing Certificate (Foreign Corporation) through the Georgia Secretary of State
Business Plan outlining products, target markets, fee schedule, operating structure, and marketing strategies.
Management Chart
Ownership Chart/Description
Flow of Funds Diagram and Description
Anti-Money Laundering (AML) /Bank Secrecy Act (BSA) Policy
Verification of Lawful Presence within the United States
Credit Report Explanations - derogatory credit that has not been dismissed will require an explanation
State Background Check Authorization

How Much Will This Bond Cost?

The premium that you pay for a Georgia Money Transmitter or Seller of Payment Instruments Surety Bond is dependent on credit and the bond amount required. Our rates start at 1.5% of the bond amount. Personal and business financial statements will be required for underwriting purposes. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

The annual license/registration renewal period is Nov. 1 - Dec. 31.