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Texas Money Transmitter License Surety Bonds

The Texas Department of Banking (TDOB) works to provide a safe, sound, and competitive financial services system in the state, which includes chartering and licensing money services businesses.

A money transmitter is a money services business that must be licensed in the state of Texas. Money transmitters issue or sell prepaid access cards and instruments such as checks, money orders and traveler's checks. They also receive money for transmission, provide third-party bill-paying services, transport currency, provide accelerated payment programs, and provide currency exchange.

The Department protects consumers by making sure the business conducts business properly, and avoids money laundering, terrorist funding, and financial crimes. A part of the licensing process includes obtaining a security, such as a surety bond.

Obligee and Surety Bonds

The Texas Department of Banking is the obligee that is requiring a security. The security can be an irrevocable letter of credit, a deposit, or a surety bond. The surety bond must be in the amount of $300,000 or an amount equal to one percent of the license holder's total yearly dollar volume of money transmission business in the state. For new applicants, the amount is their projected total volume of business for the first year, up to a maximum of $2 million.

The Commissioner may increase the bond amount up to $2 million.

Licensing Requirements

Texas money transmitters must pay a $10,000, non-refundable filing fee. Failing to submit the fee with the application will result in the application being returned. They must also have a notarized Signature Page, security, financial statements, and if applicable, a background investigation report.

A minimum net worth of $100,000 is required if there are four or fewer locations, and $500,000 if there are five or more locations. If the business provides services or products over the internet, or offers a repaid access card or similar product, the bond amount is $500,000. The Commissioner may increase the net worth to a maximum of $1 million.

Background checks must be conducted on each applicant, control shareholders, principals of the applicant, and responsible individuals.

More Application requirements:

Submission of Company Form (MU1) as the license/registration application
Financial Statements
Interim Financials
Net Worth of $100,000 for four or fewer locations, and $500,000 for five or more locations
Other Trade Names
Resident/Registered Agent
Primary Contact Employees
Approvals and Designations: Enter the FinCEN Registration Confirmation Number
Bank Account Information
Disclosure Questions
Qualifying Individual
Control Person (MU2) Attestation
MU2 Individual FBI Criminal Background Check Requirements
AML/BSA Policy - Anti-Money Laundering/Bank Secrecy Act
Business Plan
Certificate of Authority/Good Standing Certificate
Document Samples
Flow of Funds Structure
Formation Documents
Management Chart
Organizational Chart/Description
Security, such as a surety bond, for a minimum amount of $300,000

How Much Will This Bond Cost?

The premium that you pay for a Texas 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?

Texas money transmitter applicants must apply for their license through the NMLS.