Oregon Money Transmitter License Surety Bond

The Oregon Division of Financial Regulation (the Division) regulates and administers the Money Transmitter program, and has oversight of the licensing, as well as handling of consumer complaints and auditing. The licensing process will need to be completed through the Nationwide Multistate Licensing System (NMLS). The license allows for activities such as electronic money transmitting, selling of prepaid instruments, check cashing, foreign currency exchange, selling traveler's checks, selling money orders, and selling and issuing of drafts.

Oregon Money Transmission (ORS Chapter 717 Subchapter 215) requires any person providing money business services including money transmitters to first obtain a license. A minimum $25,000 security device is also required which may either be a surety bond or another security acceptable to the state. In addition to the license and security device, the licensee must prove a minimum net worth of at least $100,000.

Surety Bond Requirements:

The obligee that requires a security device to be on file is the Oregon Division of Financial Regulation. 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.

A minimum $25,000 surety bond is required and the bond amount may be increased up to a maximum of $150,000.

Additional or satellite locations will require the bond amount to be increased by $5,000 for each location.

License Requirements:

1. Complete the application and provide payment of the license fee, the credit report fee (for each control person), and the Uniform Authorized Agent Reporting fee.
2. Obtain a minimum $25,000 surety bond or provide another security device for the main location and increase the bond amount by $5,000 for each additional location.
3. Provide audited financial statements that prove a company net worth of at least $100,000 and $25,000 for each additional location and include a balance sheet, statement of income or loss, and statement of cash flow dated within 90 days of the business fiscal year end date. For startup companies, provide an initial statement if condition.
4. Provide copies of business formation documents, a certificate of good standing (that is dated not more than 60 days prior to the application filing date).
5. Provide sample copies of service contracts and other documents to be used in the course of business, a flow of funds structure, a business plan, an organizational chart, a management chart, provide a list of the company’s permissible investments, and provide the most current review of the applicants Anti-Money Laundering (AML) Policy.
6. Persons submitting the individual form (MU2) must be able to pass the state background check and credit report check. Provide explanations for credit report marks such as collection accounts, charge-offs, delinquent accounts, etc.
7. Provide the Money Service Business (MSB) number assigned through the FinCen registration process.
8. Answer all questions in the application including the authorized delegates, primary contact employees, registered agent, other trade names or dba’s used, and provide explanations for any disclosure statements answered “yes.”

How Much Will This Bond Cost?

The premium that you pay for an Oregon 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 the underwriting process for bond amounts over $50,000.

Did You Know?

Oregon money transmitter license fees are currently $1,000, and a $15 credit report fee for each control person.

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