Louisiana Money Transmitter and Sale of Checks Bond Overview
- Purpose: To ensure money transmitters and sellers of checks uphold all state regulations
- Who Needs It: All non-exempt money transmitters/check sellers in Louisiana
- Regulating Body: The Louisiana Office of Financial Institutions
- Bond Amount: $25,000
- Minimum Price: $250 for 1-year term
What Is a Louisiana Money Transmitter Bond?
A Lousianna money transmitter bond is required under The Sale of Checks and Money Transmission Act for money transmission and seller of checks licensees.
The $25,000 surety bond creates a financial guarantee that licensed professionals and companies will uphold Louisiana money transmission laws.
Who Needs a Money Transmitter Bond?
The Louisiana DFI oversees licensing and requires the $25,000 surety bond for anyone engaging in the sales of checks or money transmission for a fee, as defined below:
- Money Transmission: Selling or issuing payment instruments, selling or issuing stored value, receiving money or monetary value for electronic money transmissions — including bill paying services
- Check Selling: Selling, issuing, or delivering checks, drafts, money, orders or other financial instruments
The DFI may increase your bond amount based on annual transmission/sales volume, with a cap of $500,000.
How Much Do Money Transmitter Bonds Cost in Louisiana?
The state-required $25,000 Louisiana money transmitter/check seller bond premium starts at $250, or 1%. Rates may vary depending on credit score and financial standing. You may also be approved for a multi-year term, which will save you 25% and time on annual renewals.
Apply for your free quote now. We’ll provide your personalized rate and an invoice within one business day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Louisiana Money Transmitter Bond Work?
A money transmitter bond creates a legally-binding contract between a principal, an obligee and a surety.
| Bond Party | Description |
|---|---|
| Principal | The money transmitter entity |
| Obligee | The Louisiana Office of Financial Institutions |
| Surety | The issuing surety provider |
These three parties are legally bound in the bond contract. The principal (you) is responsible for upholding the bond terms to the obligee.
If you break state laws or regulations, the bond can be used to pay claims up to $25,000. The surety will pay harmed parties, then seek reimbursement from you. This is why you must have a strong financial standing to qualify for a surety bond.
How Do I Get a Money Transmitter Bond in Louisiana?
It only takes a couple of minutes to apply for your Louisiana money transmitter or check seller bond. Then, you can get quoted and bonded within 1–2 days. Follow these steps:
- Complete the quote request form on this page
- Receive your personalized quote within one business day
- Checkout online at your convenience
That’s it! We’ll upload the electronic surety bond directly to NMLS on your behalf.
How to Get a Money Transmitter/Sale of Checks License in Louisiana
To become a licensed money transmitter or seller of checks in Louisiana, prepare the following materials:
- Business plan with anticipated transmission volume
- Organizational chart
- Secretary of state entity documentation
- Louisiana certificate of authority
- $25,000 surety bond
- Financial statements demonstrating $100,000+ net worth
- $800 investigation fee
- $25 investigation fee per location - one check
- FBI background check authorization ($36.26/person)
- Sample copies of documents & payment instruments
- Notarized application affidavit
- Certificate of resolution
You’ll apply online and upload all documents through the NMLS. In NMLS, you'll also fill out Company Form MU1 and Individual Form MU2 with information on all owners and executive officers.
Licenses expire on December 31 of each year. There is a $600 annual renewal fee plus $25 for each location in Louisiana
Do My Agents Need a License and Bond?
No, agents and subagents of licensed money transmitters and check sellers do not need a separate license or bond. They only need to be properly appointed under the licensee.
Can I Operate in Multiple States?
Yes. Louisiana is a member of the Multistate MSB Licensing Agreement (MMLA). If you plan to operate in 5+ states, consider joining the MMLA program to streamline the licensing process.
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 may disqualify you.
Apply now to see if you qualify for bond approval with low credit.
Annual Bond Renewal
You’ll need to renew your money transmitter bond each year. To do so, just pay your renewal premium invoice when prompted. We’ll begin notifying you 90 days prior to the expiration date to ensure you don’t have a lapse in coverage.
No additional documentation is needed, unless you need to make a change to the bond.
Bond Form Updates
If basic information has changed for your bond — such as last name or address — we can often issue a bond rider document to amend the original information.
Please email the information you need updated to [email protected] for assistance.
