Maryland Money Transmitter Bond Overview
- Purpose: To ensure money transmitters uphold all state regulations
- Who Needs It: All money transmitter license applicants in Maryland
- Regulating Body: The Maryland Commissioner of Financial Regulation
- Bond Amount: $150,000–$500,000
- Minimum Price: $1,750, typically 1–2% of the bond amount
What Is a Maryland Money Transmitter Bond?
A Maryland money transmitter bond is a financial guarantee that licensed money transmitters will uphold state laws and regulations. It protects consumers and the state from loss if a transmitter acts fraudulently or illegally.
Who Needs a Money Transmitter Bond?
The Office of the Commissioner of Banks requires all money transmitters to be licensed and bonded. In Maryland, a money transmitter license authorizes the activities below:
- Electronic money transmissions
- Bill pay and payment processing services
- Issuing drafts, money orders, prepaid stored value or traveler’s checks
- Selling drafts, money orders, prepaid stored value or traveler's checks
- Transporting currency
- Non-depository ATM operations
- Virtual currency exchanging and trading*
*Note: If you need this bond for a cryptocurrency ATM business, we do not currently have any surety markets that can service you.
Bond Coverage Requirements for Maryland Money Transmitters
Your money transmitter surety bond amount will be the greater of:
- $150,000, or
- 100% of your average daily money transmission liability in Maryland for the most recent quarter.
There is a cap at $2,000,000 for the total bond penal sum. If you need bond coverage over $150,000, please call us at 1(800) 308-4358 for assistance.
How Much Do Money Transmitter Bonds Cost in Maryland?
Maryland money transmitter bond premiums are typically 1–10% of the total coverage amount, based on credit score.
Our rates start at $1,750 for the base $150,000 bond coverage. Apply now to get a free quote within one day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Maryland Money Transmitter Bond Work?
A money transmitter bond is a legally and financially-binding contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The money transmitter business owner(s) |
| 2) Obligee | The Maryland Commissioner of Financial Regulation |
| 3) Surety | The issuing surety provider |
As the principal, you promise to uphold your obligation to the Commissioner, or provide financial compensation if not.
If you break state regulations outlined in the bond contract, the surety will pay claims to harmed parties. Then, you must refund the surety.
Unlike insurance policies, you want to avoid surety bond claims at all costs because you are personally liable for them in addition to the surety.
How to Get a Money Transmitter Bond
It only takes a couple of minutes to apply for your Maryland money transmitter bond. Follow these steps to get your bond:
- Complete the quote request form on this page
- Receive your personalized quote within one business day
- Checkout online at your convenience
How Fast Can I Get My Bond?
You can get your money transmitter bond as quickly as same-day with SuretyBonds.com. If you complete all information and have a strong credit score, we can typically send you a quote invoice within hours.
If your credit is on the lower end, we’ll shop our markets to find the best rate and provide your quote within one business day.
How Do I File My Bond?
We’ll upload the electronic surety bond directly to NMLS on your behalf. You can find a copy for your records in NMLS or in our follow-up email.
Can I Get Bonded With Bad Credit?
You may still be able to bond your money transmission business with poor credit. However, since these bonds are directly related to finances, poor credit can disqualify you. In some cases, you can provide additional financial documents to be approved with low credit. Apply now to see if you qualify.
How Do I Renew My Money Transmitter Bond?
These bonds expire annually. To renew, all you need to do is pay your renewal invoice when prompted. If your bond amount needs to be increased, contact SuretyBonds.com at 1(800) 308-4358 for assistance.
How to Get a Money Transmitter License in Maryland
To operate as a money transmitter business in Maryland, you’ll need to submit the following materials for licensing:
- Certificate of Good Standing from Maryland and/or state of incorporation
- Company formation documents
- Financial statements
- Company Form MU1
- Individual Forms MU2
- Credit report & explanations
- Fee payments
- Proof of 3 years of relevant experience
- AML/BSA policy
- Detailed business plan and continuity plan
- Document samples
- Company staffing and internal policy documents
- Org and management charts
- List of permissible investments
Find more detailed requirements in the NMLS checklist linked below in the More Resources section.
How Much Does a MD Money Transmission License Cost?
You’ll pay $3,120 in initial fees to apply for a Maryland money transmitter license in addition to your surety bond premium and background check fees.
| Fee Type | Amount |
|---|---|
| License Fee | $2,000 |
| Investigation Fee | $1,000 |
| NMLS Upload Fee | $120 |
| Surety Bond Premium | $1,750 starting rate |
