Missouri Money Transmitter Bond Overview
- Purpose: To protect clients from illegal or unethical money transmission practices
- Who Needs It: All money transmitter licensees in Missouri
- Regulating Body: The Missouri Division of Finance
- Bond Amount: $100,000 or 5x the highest daily transmission check value
- Minimum Price: $1,000 or 1%
What Is a Missouri Money Transmitter Bond?
A Missouri money transmitter bond is a financial guarantee that licensed money transmitters will uphold laws and regulations. The Division of Finance requires this surety bond for licensing to protect the state and the general public from loss.
Who Needs a Money Transmitter Bond?
Anyone applying for or renewing a Missouri money transmitter license needs to hold a minimum $100,000 surety bond.
Note: Virtual currency kiosk operators also need a money transmitter bond, however, we do not currently have any surety markets that can underwrite bonds for these clients.
How Much Do Money Transmitter Bonds Cost?
Your bond amount will be the greater of $100,000 or 5 times the highest daily transmission checks from the previous calendar year.
The minimum $100,000 bond premium starts at $1,000. Exact rates typically vary between 1% and 2% of the bond amount based on credit score.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Missouri Money Transmitter Bond Work?
These surety bonds create a legally-binding financial contract between the principal (you), the obligee, and the surety (us).
| Bond Party | Description |
|---|---|
| 1) Principal | The money transmitter entity owner(s) filing the bond |
| 2) Obligee | The Missouri Division of Finance |
| 3) Surety | The issuing surety provider |
As the principal, you pledge to uphold all state and federal regulations outlined in the bond form. If you break these terms, harmed parties can file claims on the bond for reimbursement.
The surety will pay out valid claims up to the bond limit, then you are responsible for repaying the surety. This personal indemnification is why you always want to avoid bond claims.
How Do I Get a Money Transmitter Bond in Missouri?
You can apply for your bond online in minutes. Follow these steps to get bonded:
- Submit an online application
- Provide any additional financial information, if requested
- Purchase the bond using the online quote invoice
We’ll process the bond form shortly after checkout and file it with the NMLS.
How Do I File My Bond?
Since Missouri uses the NMLS for electronic surety bond submissions, you do not need to file your money transmitter bond. We’ll upload it directly to NMLS on your behalf.
Can I Get Bonded With Bad Credit?
Typically, money transmitter bonds require a strong credit score since they are a higher-risk bond. However, you may be able to submit financial statements to strengthen a lower credit score application.
How Do I Renew My Money Transmitter Bond?
These bonds expire after one full year. To renew, you can simply pay your renewal invoice when prompted to add an additional year of coverage.
However, always verify if your bond amount needs to be increased with the Division of Banking to ensure you are compliant.
How Do I Increase My Bond Coverage?
If you do need to increase your money transmitter bond amount after the first year, we can often increase the existing bond coverage by issuing a rider document. However, some markets may require a new bond form.
If you purchased your bond from SuretyBonds.com, email your change request to [email protected] for next steps.
How to Get a Money Transmitter License in Missouri
To become registered as a money transmitter in Missouri, you’ll need to register as a money services business (MSB) with FinCEN then complete the application process in NMLS. This will require several documents, including the following:
- $100,000 surety bond form (uploaded by the surety)
- Audited financial statements
- Detailed business plans and org charts
- AML/BSA policies
- FBI background checks for all control persons
This is a lengthy application and review process that typically takes several months to complete. If you have licensing questions along the way, you can contact the Department of Finance by emailing [email protected].
How Much Does It Cost to Register as a Money Transmitter?
You can expect to pay $1,120 in application and processing fees when submitting your Missouri money transmitter license application as well as the surety bond premium and background check fees.
| Fee Type | Amount |
|---|---|
| Application Fee | $1,000 |
| NMLS Processing Fee | $120 |
| Background Check Fee | $36.25/control person |
| Surety Bond Premium* | $1,000+ |
*Surety bond premiums vary based on credit score and the bond amount.
