New Mexico Money Transmitter Bond Overview
- Purpose: To protect clients from fraud by a money transmitter.
- Who Needs It: Money transmitters in New Mexico.
- Regulating Body: The New Mexico Financial Institutions Division
- Bond Amount: $300,000 to $2,000,000
- Premium Price: Credit-based; typically starting at 2%
What Is a New Mexico Money Transmitter Bond?
New Mexico money transmitter bonds ensure money transmitters conduct business according to the Money Services Act.
This surety bond protects clients from fraud and guarantees money services businesses are financially responsible.
Who Needs a Money Transmitter Bond?
The Financial Institutions Division requires money services businesses to be bonded. New Mexico defines money services businesses as any company that completes any of the following activities:
- Electronic money transmitting
- Issuing and/or selling traveler’s checks, money orders
- Selling drafts
- Bill paying or check cashing
- Transporting currency
- Foreign currency dealing or exchanging
- Virtual currency exchanging and trading services
Note: We do not currently have any surety markets that issue these bonds for cryptocurrency ATM operators.
What Are the Bond Coverage Requirements?
New Mexico money transmission licensees must file a minimum $300,000 surety bond or an amount equal to 1% of the licensee’s total annual money transmission volume, capped at $2 million.
For example, if your money services business transmits $50 million annually, you need a $500,000 surety bond. Any annual monetary total less than $30 million needs the $300,000 bond amount.
How Much Do Money Transmitter Bonds Cost in New Mexico?
New Mexico money transmitter bonds vary in cost depending on the bond amount, your credit score, and personal/business financials. Qualified applicants often pay between 1% and 4% of the total coverage amount. Get your personalized quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New Mexico Money Transmitter Bond Work?
A money transmitter bond is a legal contract between three parties that protects money transmitter clients from harm by creating a financial guarantee.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the licensed money transmitter |
| 2. Obligee | The New Mexico Financial Institutions Division |
| 3. Surety | The issuing surety provider |
If contract terms are broken, a claim can be filed and the principal must reimburse the surety for paid damages.
How Do I Get a Money Transmitter Bond in New Mexico?
To get your New Mexico money transmitter surety bond, complete the following steps:
- Determine your required bond amount
- Apply for a quote online
- Provide business and/or personal financial statements
- Receive your personalized quote within one business day
- Pay your premium through our secure payment portal
How Do I Renew My Money Transmitter Bond?
New Mexico money transmission licenses expire annually on December 31 of each year. If you renew your money transmitter license, you’ll also need to renew your surety bond every year.
A SuretyBonds.com representative will contact you within 90 days of the expiration date. Verify if your bond amount is still correct and pay your renewal invoice to extend your bond for another year.
How Do I Update My Bond Information?
If you need to update basic information on your surety bond, a SuretyBonds.com representative can issue you a bond rider for simple fixes, or assist with a new bond form if needed.
Email the necessary changes to [email protected] to get started.
How to Get a Money Transmission License in New Mexico
To get your New Mexico money transmission license, you’ll need to apply through the Nationwide Mortgage Licensing System (NMLS). To complete your application, follow these steps:
- Meet minimum net worth requirements ($100,000 for 1–4 locations; $500,000 for 5+ locations)
- Enter your MSB registration number
- Provide audited financial statements for the most recent fiscal year
- Complete the MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- Purchase a surety bond in the proper amount
Use the NMLS Licensing Checklists, Requirements and Fees Checklist Compiler for the most recent information about the application process.
How Much Does It Cost to Get a New Mexico Money Transmission License?
The state charges $4,000 in initial fees to become licensed as a money transmission company in New Mexico. See related fees in the table below.
| Fee Type | Amount |
|---|---|
| Application Fee | $2,000 |
| License Registration Fee | $2,000 |
| NMLS Processing Fee | $120 |
