Massachusetts Foreign Transmittal Agency License Bond

A foreign transmittal agency is defined as an agency that engages in the business of receiving deposits of money for the purpose of transmitting of money to foreign countries.

Licenses for foreign transmittal agencies in Massachusetts must be approved by the Massachusetts Division of Banks.

The Non-depository Institution Supervision (NDIS), a departmental unit of the Division of Banks, is responsible for the licensing and examination of money services businesses, which includes foreign transmittal agencies. NDIS works to assure compliance with consumer protection laws, and determines if the licensee is operating in a safe and sound manner.

All applications for company licenses must be filed through the Nationwide Multi-State Licensing System & Registry (NMLS). One aspect of licensing includes obtaining a $50,000 surety bond.

Surety Bond Requirements

The Massachusetts Division of Banks is the obligee that requires a surety bond for foreign transmittal agencies. A $50,000 surety bond is required for the initial license. After that, the bond amount is equal to twice the average weekly funds deposited with the licensee by Massachusetts consumers for remittance to foreign countries.

Licenses and surety bonds expire yearly on Dec. 31.

License Requirements

Licensing fees include:

• License/Registration Fee $1,000
• Application Fee $300 (investigation fee)
• Credit report for Control persons $15
• FBI Criminal Background Check for MU2 individual $36.25

Required forms to be submitted in NMLS:

• Submission of Company Form (MU1): This is the application for the license/registration
• Financial Statements of the most recent fiscal year end, and for the prior two fiscal years. Include a balance sheet, income statement, statement of cash flows, and all relevant notes. The financial statement must show a positive company net worth.
• Other Trade Name: List all trade names to be used in Massachusetts after they have been approved and licensed to conduct business in the state.
• Resident/Registered Agent
• Primary Contact Employees - list the Primary Company Contact and the Primary Consumer Complaint Contact
• Bank Account information
• Disclosure Questions - provide explanations for any "yes" responses
• Qualifying Individual
• Control Person (MU2) Attestation
• Credit Report
• MU2 Individual FBI Criminal Background Check Requirements
• Surety Bond - A surety company must submit an electronic surety bond through the NMLS for $50,000. After the initial licensing, the bond amount will be equal to twice the average weekly funds deposited with the licensee by Massachusetts consumers.
• Business Plan
• Anti-Money Laundering/Compliance Policy
• Independent Review
• Certificate of Authority/Good Standing Certificate
• Formation Documents
• Management Chart
• Organizational Chart/Description

Required documents to be submitted outside the NMLS:

• W-9 Form
• Parent Financial Statements
• Business in Other Jurisdictions

How Much Will This Bond Cost?

The premium that you pay for a Massachusetts Foreign Transmittal 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 to get a free quote that applies to your specific situation.

Did You Know?

Surety bonds for Massachusetts foreign transmittal agencies must be written by a surety agency that is licensed in Massachusetts. SuretyGroup.com is licensed to write all surety bonds in the state, and fulfills that requirement.

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