Michigan Money Transmitter Bond Overview
- Purpose: To ensure money transmitters uphold all state and federal regulations
- Who Needs It: All money transmitter licensees in Michigan
- Regulating Body: The Department of Insurance and Financial Services, Consumer Finance Section
- Bond Amount: $500,000–$1,500,000
- Minimum Price: $7,500
What Is a Michigan Money Transmitter Bond?
This bond ensures that licensed money transmitters adhere to the rules and regulations in the Michigan Money Transmission Services Act.
The money transmitter surety bond creates a financial guarantee to protect any consumers harmed by a non-compliant money services business.
Who Needs a Money Transmitter Bond?
Any person or business “selling or issuing payment instruments or stored value devices or receiving money/value for transmission” for people in Michigan must get a money transmitter license and bond.
However, there are several exemptions for entities like banks, foreign currency exchangers and authorized delegates.
We also issue a separate Michigan consumer financial services bond for Class I and Class II licensees.
Bond Coverage Requirements for Michigan Money Transmitters
The base bond amount is $500,000 plus $10,000 for any additional locations or authorized delegates, with a cap at $1.5M.
| Bond Amount | # of Locations |
|---|---|
| $500,000 Bond | 1 locations |
| $510,000 Bond | 2 locations |
| $550,000 Bond | 5 locations |
How Much Do Money Transmitter Bonds Cost in Michigan?
These bonds typically start at a 1.5% rate. For example, the minimum $500,000 bond coverage costs $7,500 for highly qualified applicants.
Exact rates vary depending on your personal credit score, personal financials, and often business financials. Apply to get your free, personalized quote in one business day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Michigan Money Transmitter Bond Work?
These bonds create a legal contract between three parties: the principal, obligee and surety.
| Bond Party | Description |
|---|---|
| 1) Principal | The money transmitter entity filing the bond |
| 2) Obligee | The Michigan Department of Insurance and Financial Services |
| 3) Surety | The issuing surety provider |
As the bonded principal, you pledge to uphold all applicable federal and state laws. If you break any regulations, you are liable for bond claims.
Harmed parties (clients or the state) can make claims to receive payment from the surety, but you have to refund the surety in the end.
How Do I Get a Money Transmitter Bond in Michigan?
To get your Michigan money transmitter bond:
- Submit an application form
- Provide any additional information, if requested
- Complete your purchase online
You’ll typically need to provide business and personal financial statements for approval.
How Do I File My Bond?
We’ll upload the electronic surety bond directly to the Nationwide Multistate Licensing System (NMLS) on your behalf. You can find a copy for your records in NMLS or in our follow-up email.
How Do I Renew My Money Transmitter Bond?
These bonds expire annually on December 31. To renew your bond each year, pay your renewal invoice when prompted. If needed, contact your surety company to update the bond amount.
Can I Make Updates to My Bond?
If minor information has changed for your existing bond form, we can likely issue a bond rider. This is a document that “rides” on top of your existing bond to amend the original information.
If you purchased your bond from us, please email the information you need updated to [email protected] to get started.
How to Get a Money Transmitter License in Michigan
Michigan money transmitter licenses are processed online through the NMLS. You’ll need to provide in-depth information about your business and financials, including the following:
- MU1 and MU2 application forms
- $100,000 surety bond
- Audited financial statements demonstrating net worth
- Anti-Money Laundering & Bank Secrecy Act policies
- FBI background checks and credit reports for all control persons
If you have any questions along the way, you can call the Office of Consumer Finance at (877) 999-6442.
How Much Does It Cost to Register as a Money Transmitter?
It costs nearly $12,000 to get licensed as a money transmitter in Michigan. You’ll pay $4,070 in non-refundable fees in addition to the surety bond premium which starts at $7,500.
| Fee Type | Amount |
|---|---|
| Application Fee | $600 |
| License Registration Fee | $3,350 |
| NMLS Processing Fee | $120 |
| Surety Bond Premium* | $7,500+ |
*Surety bond premiums vary based on credit score and sometimes business financials.
