The Vermont Department of Financial Regulation (the Department) regulates and administers the Money Transmitter and Money Servicers 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, bill paying, check cashing, foreign currency exchange, selling traveler's checks, selling money orders, and selling and issuing of prepaid access including virtual currency.
Vermont Money Services Statutes (Title 8 Chapter 79 Subchapter 2) requires any person providing money business services including money transmitters to first obtain a license. A minimum $100,000 form of security is also required which may either be a surety bond or another security acceptable to the state.
The obligee that requires a security to be on file is the Vermont Department of Financial Regulation. The security is required to protect consumers in the event a money transmitter or servicer (the licensee) fails to comply with the state regulations and laws and if a person files a claim against the company with the state. The security is applied when the licensee is found to be in violation of such laws. In the case of a claim on a surety bond, the licensee (the principal listed on the bond) is responsible for the claimed amount. If the surety pays the claim, the principal is required to reimburse the surety.
A minimum $100,000 surety bond is required and the bond amount may be increased up to a maximum of $2,000,000. The bond amount is based on the net worth, amount of financial losses and or other financial standards considered by the Department.
Additional or satellite locations will require the bond amount to be increased by $10,000 for each location.
The premium that you pay for a Vermont Money Transmitter or Servicer Surety Bond is dependent on credit and the bond amount required. Personal and business financial statements will be required for the underwriting process.
Total application and NMLS fees are $1,500, a $15 credit report fee and a $39 background check fee is required for each control person.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
For a downloadable application