Hawaii Money Transmitter Surety Bonds

Hawaii's Department of Commerce and Consumer Affairs (DCCA), Financial Institutions is responsible for on-site examinations, licensing, and consumer complaints about money transmitters. Licensing requirements including having a net worth of at least $1,000, and obtaining a financial security, which includes a $10,000 surety bond in order to provide money transmission services.

Obligee and Surety Bonds:

The Department of Financial Institutions is the obligee that requires Hawaii money transmitters to have a surety bond or other type of financial security.

A surety bond protects consumers against the money transmitter in the business of receiving, handling, transmission, and payment of money by the licensee or authorized seller.

The amount for the surety bond or other security device is:

• $10,000 if licensed for less than one year
• $ 5,000 if licensed for one year or more and annualized money transmissions are less than $10,000,000
• $10,000 if licensed for one year or more and annualized money transmissions are $10,000,000 or more
• The Commissioner may also require a higher amount

Upload a copy of the surety bond (or other security) in the NMLS, and mail the original bond with the power of attorney to the Commissioner.

License Requirements:

A money transmitter is someone in the business of selling or issuing payment instruments, or receiving money or monetary value for transmission to another location by any means including wire, electronic transfer, or facsimile.

Money transmitters must be licensed in Hawaii if they service those who are in Hawaii, even if the money transmitter does not have a physical presence in the state.

A license application costs $10,000. This includes a $5,000 non-refundable application fee, and an initial license fee of $5,000. The initial license fee is refundable if the application is not approved or the application is withdrawn.

Applicants need to apply for a license through the National Mortage Licensing System (NMLS) website which includes providing:

• Other trade name
• Resident/Registered Agent
• Branch Locations
• Bank Account Information
• Disclosure Questions - provide an explanation for any "yes" answers
• Financial Statements
• Business Plan
• Certificate of Good Standing
• Management Chart
• Organizational Chart/Description
• Anti-Money Laundering Program (AML) / Office of Foreign Assets Control (OFAC) Policy
• Information on Technology Security
• Surety Bond for $10,000
• FBI and Hawaii Criminal Background Check (CBC) Requirements
• Third Party Investigative Background Checks
• Authorized Agents (Delegates) Locations
• Document Sample

How Much Does This Bond Cost?

The premium that you pay for a Hawaii Money Transmitter Surety Bond is dependent on credit and the bond amount required. Our rates start at 1.5% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

Section 489D-5(a), Hawaii Revised Statutes excludes digital currency (bitcoin) under money tranmission regulations.

Related Links: