South Dakota's Division of Banking charters, licenses, regulates, supervises, and provides guidance to financial institutions in the state, which includes money transmitters.
A money transmitter is a person who sells or issues payment transmissions to another location by means such as wire, facsimile or electronic transfer.
Money transmitters in South Dakota must be licensed with the Division of Banking, and applications are submitted through the NMLS website. A $100,000 surety bond or other form of security is required for licensing.
The obligee that requires a $100,000 security device, such as a surety bond, is South Dakota's Division of Banking. The Director may increase that amount to a maximum of $500,000 on the basis of the impaired financial condition of a license.
A security is required to protect consumers in the event a money transmitter fails to comply with the state's regulations and laws. If a money transmitter is in violation, there can be a claim made against the bond or other security devices. 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 single license in South Dakota allows a licensee to conduct business at one or more locations, or through one or more authorized delegates.
The application procedure includes:
The premium that you pay for an Oregon Money Transmitter Surety Bond is dependent on credit and the bond amount required. SuretyGroup.com offers free, no-obligation quotes that fit your specific situation.
The renewal fee for a South Dakota Money Transmitter license is $800, and the renewal period is Nov. 1 to Dec. 31.
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