New York Money Transmitter Surety Bond

New York's Department of Financial Services (DFS) regulates and licenses the state's financial services industries, guards against financial crises, and protects consumers and markets from fraud. One of the financial services that the Department oversees is Transmitters of Money.

A transmitter of money is in the business of issuing and selling traveler’s checks and money orders, and transmits money by any means including transmissions within this country or abroad by wire, check, draft, facsimile or courier. The New York Banking Law requires that money transmitters be licensed, and a part of the licensing process includes obtaining a surety bond.

Obligee and Surety Bonds

New York's Department of Financial Services is the obligee that requires transmitters of money to obtain a New York Instrument Surety Bond of at least $500,000. A deposit of cash, interest-bearing stocks and bonds, notes, debentures or other securities may fulfill this requirement. Money transmitters that sell traveler checks need to obtain a $750,000 New York Travelers Check Surety Bond.

The Superintendent may take these and other factors into consideration when determining the bond amount:

• The financial condition of the licensee
• The number of locations
• If the licensee sells New York instruments or New York traveler's checks
• The possibility of purchasers and holders of instruments and traveler's checks to loss due to insolvency, bankruptcy, or other financial issues

Licensing Requirements

A New York license for a Transmitter of Money allows the following activities:

• Bill paying
• Issuing and/or selling drafts
• Selling prepaid access/stored value
• Electronic Money Transmitting
• Foreign currency dealing or exchanging
• Issuing money orders
• Issuing prepaid access/stored value
• Issuing traveler's checks
• Other-Money Services
• Selling money orders
• Selling traveler’s checks

Licensing Fees

Licensing fees for New York Transmitter of Money are:

• New York Application Fee $3,000
• Credit Report for Control Persons $15
• Uniform Authorized Agent Reporting Annual Processing Fee: annual fee of $.25 for each active authorized agent/delegate location. No fee for the first 100 active agents reported. The fee is capped at $25,000 per licensee in any one year.

License Requirements to Submit in NMLS

The following are some of the items that are required to be completed online through the NMLS:

• Submission of Company Form (MU1) that serves as the application for the license/registration
• Financial Statements
• Authorized Agents (Delegates) Locations
• Other Trade Name
• Resident/Registered Agent
• Primary Contact Employees
• Non-Primary Contact Employees
• Approvals and Designation: Enter the company's FinCEN registration confirmation number and filing date
• Bank Account Information
• Disclosure Questions
• Chief Compliance Officer
• Control Person (MU2) Attestation
• Credit Report
• AML/BSA Policy (Anti-Money Laundering/Bank Secrecy Act)
• Business Plan
• Certificate of Authority/Good Standing Certificate
• Agent and Correspondent Policies
• Document Samples
• Flow of Funds Structure
• Formation Documents
• Management Chart
• Organizational Chart/Description
• Permissible Investments
• Permissible Investments Affidavit
• Surety Bond of at least $500,000
• Credit Report Explanations
• Legal Name/Status Documentation
• Personal Financial Statement of Direct Owners, Executive Officers, and Indirect Owners
• Authority to Release Information

How Much Will This Bond Cost?

The premium that you pay for a New York 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. SuretyGroup.com's Surety Bond Specialists can provide you with a free quote that fits your specific needs.

Did You Know?

Control persons who have not resided in the U.S. for the last five years must have an investigative background report prepared by an acceptable search firm. The applicant must pay the cost of the report.

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