The Minnesota Department of Commerce protects the public interest by licensing, supervising and examining financial institutions along with other industries. The Department also investigates consumer complaints and related financial crimes. Minnesota money transmitters are one of the industries licensed and regulated by the Department. A money transmitter is an individual or business that cashes checks, transmits money, owns and operates ATMs, and provides electronic funds transfers. One of the licensing requirements for Minnesota money transmitters is to obtain a surety bond or other security.
A surety bond, irrevocable letter or credit, or other security device must be in place for $25,000.
The security device is required to protect consumers in the event a money transmitter (the licensee) fails to comply with the state regulations and laws. A claim may be placed against the security device. In the case of a surety bond, if the licensee (the principal listed on the bond) is found in violation, the licensee is responsible for repayment of the claimed amount. If the surety pays the claim, the principal is required to reimburse the surety.
A security device remains in effect until cancellation, and may only be cancelled after 30 days' written notice to the Commissioner. Cancelling does not affect the rights of any claimants for any liability incurred or accrued during the period in which the bond was in force.
The security must remain in place no longer than five years after the licensee ceases money transmission operations. The commissioner may reduce or eliminate the requirement as it deems appropriate.
Minnesota money transmitters must obtain a license through the Department of Commerce before they can begin business operations. A single license allows a licensee to conduct business at one or more locations, or through one or more authorized delegates.
Registration is through the NMLS, and requires a $4,000 application fee. The renewal fee is $2,500. Renewals must also include an annual renewal report. Other licensing requirements include:
Minnesota money transmitters must display a copy of their license prominently in each location where money transmission services are offered.
The premium that you pay for a Minnesota Money Transmitter Surety Bond is dependent on credit and the bond amount required. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
For a downloadable application