Minnesota Money Transmitter Bond Overview
- Purpose: To ensure money transmitters uphold all state and federal regulations
- Who Needs It: All money transmitter licensees in Minnesota
- Regulating Body: The Minnesota Department of Commerce
- Bond Amount: $100,000–$500,000
- Minimum Price: $1,500
What Is a Minnesota Money Transmitter Bond?
A Minnesota money transmitter bond creates a means of recourse for any clients harmed by a money services business. The Minnesota Department of Commerce requires all money transmitters to be licensed and bonded because the bond financially guarantees that they will adhere to regulations.
We also issue $10,000 Minnesota currency exchange bonds if you work as a currency exchanger in the state.
Note: Currently, we do not have any surety markets that can underwrite these bonds for cryptocurrency ATM operators.
Bond Coverage Requirements for Minnesota Money Transmitters
To get licensed, money transmission companies need a surety bond to cover the greater of $100,000 or the total average daily money transmission liability in the state for the most recent quarter. There is a $500,000 cap if your liability exceeds it.
How Much Do Surety Bonds Cost?
You’ll need a $100,000 bond for initial licensing. Premiums are calculated based on risk, which is primarily determined by the credit score of the applicant(s).
The cost of a Minnesota money transmitter bond is typically calculated as 1.5–3% of the coverage amount. For instance, the base $100,000 bond starts at $1,500. If requested, we may be able to provide bond premium financing to lower the upfront cost.
Apply now to get your personalized rate 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 Minnesota Money Transmitter Bond Work?
Money transmitter bonds, like all types of surety 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 Minnesota Department of Commerce |
| 3) Surety | The issuing surety provider |
How Do I Get a Money Transmitter Bond in Minnesota?
To get your Minnesota 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 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. 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 Do I Update My Bond Information?
If minor information has changed for your existing money transmitter 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.
Please email the information you need updated to [email protected] to get started.
How to Get a Money Transmitter License in Minnesota
Before you apply, you’ll need to register your business entity with the Secretary of State and be registered as a Money Services Business (MSB) with FinCEN.
After completing those registrations, you can move forward to the online money transmitter license application in NMLS. You’ll need to submit significant documentation about your business and financials, including the following:
- MU1 and MU2 forms
- $100,000 surety bond
- Audited financial statements demonstrating $100,000+ net worth
- Anti-Money Laundering & Bank Secrecy Act policies
- FBI background checks and credit reports for all control persons
This process typically takes a few months to complete from start to approval. You can email [email protected] with any questions along the way.
How Much Does It Cost to Register as a MN Money Transmitter?
There is a $4,000 non-refundable Michigan money transmitter license registration fee in addition to the other fees outlined below.
| Fee Type | Amount |
|---|---|
| License Registration Fee | $4,000 |
| NMLS Processing Fee | $120 |
| Background Check Fee | $36.25/person |
| Credit Report Fee | $15/person |
| Surety Bond Premium* | $1,500+ |
*Surety bond premiums vary based on credit score and business financials.
