New York Money Transmitter Bond Overview
- Purpose: To ensure money transmitters in New York follow industry regulations.
- Who Needs It: All licensed money transmitters in New York.
- Regulating Body: The New York State Department of Financial Services
- Bond Amount: $500,000
- Minimum Price: $5,000, credit-based
What Is a New York Money Transmitter Bond?
The New York State Department of Financial Services (DFS) requires a $500,000 surety bond to ensure money service businesses follow industry laws.
New York money transmitter bonds protect clients from fraud and hold money transmitters financially responsible to follow New York Code.
Who Needs a Money Transmitter Bond?
All New York money transmitter licensees need a money transmitter bond. New York defines a money transmitter as anyone who participates in the following activities:
- Selling or issuing traveler’s checks, drafts, and/or money orders
- Bill paying services
- Selling or issuing prepaid access/stored value
- Foreign currency dealing or exchanging
- Electronic money transmitting
- Other money services
Note: We do not currently have any surety markets that issue bonds for virtual currency business activity like cryptocurrency ATM services. Those services fall under a BitLicense which have different requirements. Read more about Virtual Currency Business Licensing.
How Much Do Money Transmitter Bonds Cost in New York?
New York transmitter bonds are subject to underwriting, meaning exact prices vary depending on the bond amount, your credit score, and sometimes other financial factors.
With great credit, most money transmitter bonds have starting premiums of 1–2%. 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 York Money Transmitter Bond Work?
When you purchase a money transmitter bond, you enter a legal agreement between three parties.
| Bond Party | Description |
|---|---|
| 1. Principal | The New York money transmitter licensee |
| 2. Obligee | The New York State Department of Financial Services |
| 3. Surety | The issuing surety provider |
If contract terms are broken, a claim can be filed on the bond by clients or the state. The surety pays damages to harmed parties and the principal (money transmitter) must then reimburse the surety.
How Do I Get a Money Transmitter Bond in New York?
To get your New York money transmitter bond, complete the following steps:
- Apply for a quote online
- Get your personalized quote within one business day
- Pay your bond premium
- Receive your physical bond in the mail
- File with the New York DFS and in NMLS
How Do I File My Bond?
The New York State Department of Financial Services uses the National Multistate Licensing System (NMLS) for money transmitter applications. You need to authorize the surety provider in NMLS and mail your surety bond to the New York DFS at the following address:
Licensed Financial Services Applications Unit
1 State Street, New York, NY 10004-1511
For more information on filing your bond via NMLS, read Delivering a Bond.
How Do I Renew My Money Transmitter Bond?
If you wish to maintain your money transmitter license, you need to renew your bond each year. Within 90 days of the expiration date, a surety representative will contact you with renewal steps.
Pay your renewal invoice to extend your bond for another term.
How Do I Update My Bond Information?
If you need to update simple information on your bond form, email what needs to be fixed to [email protected]. One of our surety experts will help you change your existing bond or issue a new form if needed.
How to Get a Money Transmitter License in New York
To get your New York money transmitter license, get fingerprinted through IdentoGo Live Scan and submit an application via NMLS. Include the following materials in your application:
- Completed MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- NMLS Uniform Authorized Agent Reporting Annual Processing Fee
- Audited financial statements prepared by a Certified Public Accountant
- Credit report
- Application fee
- $500,000 surety bond
Refer to the NMLS Licensing Checklists, Requirements and Fees Checklist Compiler for current license application information.
How Much Does It Cost To Get a New York Money Transmitter License?
To get your New York money transmitter license, expect the following costs.
| Fee Type | Amount |
|---|---|
| Application Fee | $3,000 |
| UAAR Fee | $0.25 per active authorized agent/delegate location reported* |
| NMLS Processing Fee | $120 |
*Note: Companies with 100 or fewer agents are exempt from the UAAR Fee. There is a $25,000 maximum fee cap per licensee per year.
