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.
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.
The premium that you pay for an Oregon Money Transmitter Surety Bond is dependent on credit and the bond amount required. Personal and business financial statements will be required for the underwriting process for bond amounts over $50,000.
Oregon money transmitter license fees are currently $1,000, and a $15 credit report fee for each control person.
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