Kansas Money Transmitter Surety Bonds

The Office of the State Bank (OSB) Commissioner of Kansas regulates state-chartered banks, trust companies, mortgage businesses, supervised lenders, credit service organizations, and money transmitters and ensures compliane of the Kansas Money Transmitter Act.

A money transmitter is a person who engages in the business of the sale or issuance of payment instruments or of receiving money for transmission to another by wire, facsimile, electronic means or any other means.

One aspect of licensing for money transmitters includes obtaining security, such as a surety bond.

Obligee and Surety Bond:

The Office of the State Bank Commissioner is the obligee requiring Kansas money transmitters to obtain a surety bond for licensing. The surety bond, or other type of security must be $200,000 or the licensee's transaction volume in Kansas times .25%, whichever is greater.

The Commissioner may increase the amount up to $1 million.

The Bond is to ensure the money transmitter will faithfully perform obligations in regard to the receipt, handling, transmission and payment of monetary value.

Money Transmitter Licensing:

A money transmitter license authorizes the following activities:

• Electronic money transmitting
• Issuing and selling traveler’s checks
• Issuing and selling money orders
• Bill paying
• Issuing and/or selling drafts
• Issuing and selling prepaid access/stored value
• Other – money services

Fees are based on a licensee's total transaction volume, with a minimum renewal fee of $1,000 and a maximum $4,000 for in state licenses, and a max of $20,000 for out of state licenses.

Other fees:

• New license application: $1,750
• Change of Control Applications $1,000
• Out of State Agent Applications $100
• Credit report for control person: $15
• FBI Criminal Background Check for MU2 Individual: $36.25
• Uniform Authorized Agent Reporting Annual Processing Fee: annual fee of 25 cents for each active authorized agent/delegate location. There is no fee for the first 100 active agents. The fee is capped at $25,000 per license in any one year.

Pre-requisites for license applications:

• Tangible net worth $250,000
• Surety bond $200,000
• Register/file with Kansas Secretary of State

Requirements to be completed in the NMLS:

• Submission of Company Form (MU1) serves as the application for the license/registration
• Financial statements that demonstrate a net worth of at least $250,000
• Authorized Agents (Delegate) Locations
• Other trade name
• Resident/Registered Agent
• Primary Contact Employees
• Approvals and designation
• Bank account information
• Disclosure Questions, with explanations for any "yes" answers
• Control Person (MU2) Attestation
• Credit Report
• MU2 Individual FBI Criminal Background Check Requirements
• Anti-Money Laundering Policy, Bank Secrecy Act Policy (AML/BSA Policy)
• Business Plan
• Certificate of Authority/Good Standing Certificate
• Formation Documents
• Management Chart
• Organizational Chart/Description
• Permissible Investments
• A surety bond for $200,000 or a bond amount based on the transaction volume in Kansas times .25%, whichever is greater.

Documents to be submitted outside of NMLS:

• A list of Officers/Directors
• Information about doing Business in Kansas
• If handling virtual currency, provide a security audit of all relevant computer and information systems
• Money Services Business Registration

How Much Will This Bond Cost?

The premium that you pay for a Kansas 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. 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?

Check Cashers are not required to have this license.

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