Mississippi Money Transmitter Surety Bond

Money transmitters sell or issue checks, or receive money or monetary value for transmissions by any and all means, including but not limited to wire, facsimile or electronic transfer.

Mississippi's Department of Banking and Consumer Finance (DBCF) supervises and regulates financial industries in the state, ensures the safety and soundness of the institutions, monitors compliance with laws and regulations, and may also bring enforcement actions against an institution. The Department oversees Money Transmitters in Mississippi and requires a $25,000 surety bond as a part of the licensing process.

Surety Bond Requirement:

The Department of Banking and Consumer Finances is the obligee that requires a surety bond for $25,000, or in an amount equal to outstanding money transmissions in Mississippi, whichever is greater. However, no bond shall exceed $500,000. Instead of a bond an applicant may submit proof of a government bond or CD equal to the required amount.

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 and if found in violation, a claim may be placed against the security device. In the case of a claim on a surety bond, the licensee (the principal listed on the bond) is responsible for repayment of the claimed amount. If the surety pays the claim, the principal is required to reimburse the surety.

License Applications:

Applications and renewals are done through the National Multistate Licensing System (NMLS) website and the license period is April 1 to March 31.

Minimum requirements for licensing include:

• Fees: Initial license fee $750 plus investigation fee $50. Renewal license fee $400 plus $50 for each additional location, not to exceed $1,000.
• Financial statement showing a net worth of at least $25,000 plus $15,000 for each additional location. The maximum required net worth is $250,000.
• Obtain a $25,000 surety bond or in an amount equal to outstanding money transmissions in Mississippi, whichever is greater. However, no bond shall exceed $500,000. Instead of a bond an applicant may submit proof of a government bond or CD equal to the required amount.
• Registration with the Mississippi Secretary of State
• List of locations
• Sample of instruments sold
• MSB FinCEN registration
• Certificate of good standing
• If a corporation, provide a copy of Articles of Incorporation, with amendments. If an LLC, provide Articles of Organization and Operating Agreement
• Fingerprint cards for each direct owner
• Applicants may not have been convicted of a felony or misdemeanor

How Much Will This bond Cost?

The premium that you pay for a Mississippi 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. Bond amounts over $50,000 will require two years of personal and business financial statements. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

A surety bond must be issued by a surety agency that is licensed to operate in Mississippi. SuretyGroup.com fulfills this requirement.

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