{"id":21622,"date":"2025-09-09T11:19:18","date_gmt":"2025-09-09T16:19:18","guid":{"rendered":"https:\/\/www.suretybonds.com\/blog\/?p=21622"},"modified":"2025-09-09T11:19:18","modified_gmt":"2025-09-09T16:19:18","slug":"massachusetts-updates-money-transmitter-license-bond-requirements","status":"publish","type":"post","link":"https:\/\/www.suretybonds.com\/blog\/massachusetts-updates-money-transmitter-license-bond-requirements\/","title":{"rendered":"Massachusetts Updates Money Transmitter License &#038; Bond Requirements"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In January 2025, Massachusetts Governor, Maura Healy, approved <\/span><a href=\"https:\/\/malegislature.gov\/Bills\/193\/H4840\"><span style=\"font-weight: 400;\">House Bill 4840<\/span><\/a><span style=\"font-weight: 400;\">, or the Money Transmission Act (MTA). The bill increases the required bond amount and expands licensing requirements.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Key Updates<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increases minimum bond amount from $50k to $100k<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expands licensing requirement to include domestic money transmitters\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Goes into effect on October 1, 2025<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Why did the requirements change?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Massachusetts is the 29th state to begin regulating domestic money transmission, marking a country-wide trend in increased regulation. The MTA is closely related to the nationwide <\/span><a href=\"https:\/\/www.csbs.org\/csbs-money-transmission-modernization-act-mtma\"><span style=\"font-weight: 400;\">Model Money Transmission Modernization Act<\/span><\/a><span style=\"font-weight: 400;\"> (Model Act).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Increased regulation is meant to help protect consumers, especially those transferring money through payment apps, such as Venmo or Paypal, from fraud. The bill also regulates businesses such as investment firms and FinTech companies that offer banking and financial services.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Are ALL money transmitters now required to get licensed?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">No, not all Massachusetts money transmitters need a license. There are a few exemptions, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A person collecting and processing payment from one party to another for goods or services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A person acting as an intermediary between an entity that has an outstanding money transmission obligation to another party<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A person that is expressly appointed as a third-party service provider of a financial institution\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Massachusetts remains one of the five states that regulates only consumer transactions. If you are unsure if you\u2019re exempt from the new licensing requirements, review <\/span><a href=\"https:\/\/malegislature.gov\/Bills\/193\/H4840\"><span style=\"font-weight: 400;\">Chapter 169B of Act 4840<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What are the new bond requirements?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The bond requirements for licensed money transmitters have also changed. Now, <\/span><a href=\"https:\/\/www.suretybonds.com\/states\/massachusetts\/money-transmitter-bond\"><span style=\"font-weight: 400;\">all money transmitters need a surety bond<\/span><\/a><span style=\"font-weight: 400;\"> that is either $100,000 or 100% of their average daily money transmission liability over a 3-month period (capped at $500,000), whichever amount is greater.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is an increase from the previous bond requirement, which was $50,000 or twice the average weekly amount transmitted.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">SuretyBonds.com works with authorized surety companies so that transmitters can get the correct bond required for their license application. <\/span><a href=\"https:\/\/www.suretybonds.com\/states\/massachusetts\/money-transmitter-bond\"><span style=\"font-weight: 400;\">Apply online today<\/span><\/a><span style=\"font-weight: 400;\"> to get your free quote or call (800) 308-4358.\u00a0\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How and when do I get licensed?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">All domestic money transmitters that are not currently licensed in Massachusetts must file for a license by July 1, 2025 to continue providing services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Transmitters do not have to stop working while they wait for their license approval. Once the application is submitted, transmitters can continue working until they receive an approval or denial.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Licensed transmitters simply have to update their bond amount at renewal.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Next Steps\u00a0\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Ensure that you have met the new requirements by October 1, 2025 if you are a newly licensed domestic transmitter, or when you renew your license as a foreign transmitter.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more information, refer to Bill 4840 or call (800) 308-4358 to speak with one of our friendly surety experts.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In January 2025, Massachusetts Governor, Maura Healy, approved House Bill 4840, or the Money Transmission Act (MTA). The bill increases the required bond amount and expands licensing requirements.\u00a0 Key Updates Increases minimum bond amount from&#8230;<\/p>\n","protected":false},"author":73,"featured_media":21623,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"featured_image_src":"https:\/\/www.suretybonds.com\/blog\/wp-content\/uploads\/2025\/09\/Copy-of-License-Guide-Header-Image-w-Title.png","author_info":{"display_name":"Allie Webb","author_link":"https:\/\/www.suretybonds.com\/blog\/author\/alliesuretybonds-com\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Massachusetts Updates Money Transmitter License &amp; Bond Requirements | Surety Bond Insider<\/title>\n<meta name=\"description\" content=\"Learn all about the 2025 Massachusetts money transmitter license requirement updates and new minimum surety bond coverage.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.suretybonds.com\/blog\/massachusetts-updates-money-transmitter-license-bond-requirements\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Massachusetts Updates Money Transmitter License &amp; 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