North Carolina Money Transmitter Bond Overview
- Purpose: To protect clients from illegal practices and ensure money transmission business is conducted ethically
- Who Needs It: All licensed money transmitters in North Carolina
- Regulating Body: The North Carolina Office of the Commissioner of Banks
- Bond Amount: $100,000–$250,000
- Minimum Price: $3,000
What Is a North Carolina Money Transmitter Bond?
A North Carolina money transmitter bond ensures money transmitters conduct business in accordance with the N.C. Money Transmitter Act.
The bond protects clients from potential fraudulent or illegal activity and guarantees money services businesses are financially responsible.
Who Needs a Money Transmitter Bond?
The Office of the Commissioner of Banks requires all money transmitters offering services to clients in North Carolina to be licensed and bonded.
Some businesses are exempt from license requirements, such as government agencies and registered financial institutions. If you believe your business is exempt, complete the NCOCB License Determination/Exemption Request form.
Note: We do not currently have any surety markets that issue these bonds for cryptocurrency ATM operators.
What Are the Bond Coverage Requirements?
North Carolina money transmitters typically need a $150,000 surety bond. However, bond coverage requirements are tiered based on annual transmission volume with a $250,000 cap.
| Total Annual Volume | Required Bond Amount |
|---|---|
| $1 million or less | $150,000 |
| $1 million to $5 million | $175,000 |
| $5,000,001 to $10 million | $200,000 |
| $10,000,001 to $50 million | $225,000 |
| Greater than $50 million | $250,000 |
How Much Do Money Transmitter Bonds Cost in North Carolina?
North Carolina money transmitter bonds have a starting premium rate of 2%. For example, you’ll pay a $2,000 minimum premium for a $100,000 coverage.
Exact prices vary depending on the bond amount, your credit score, and sometimes other financial factors. Apply for a personalized quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a North Carolina Money Transmitter Bond Work?
By having a North Carolina money transmitter bond, you enter an agreement between three parties.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the money transmitter |
| 2. Obligee | The Office of the Commissioner of Banks |
| 3. Surety | The issuing surety provider |
Money transmitters are responsible for following the North Carolina Money Transmitters Act and reimbursing the surety if contract terms are broken.
How Do I Get a Money Transmitter Bond in North Carolina?
To get a North Carolina money transmitter bond, complete the following steps:
- Determine your required bond amount
- Apply for a personalized quote online
- Pay through our secure payment portal
The surety company will upload your electronic money transmitter bond form directly to the NMLS under your name. You will need to authorize the surety company in NMLS by following the steps outlined in Granting Authority to Your Surety Bond Issuer.
How Do I Renew My Money Transmitter Bond?
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.
Double check that your required bond amount is correct based on your annual transmission volume. Then, pay your renewal invoice and the surety will file your bond for you again.
How Do I Update My Bond Information?
If you need to update basic information on your surety bond, email what needs to be changed to [email protected].
A SuretyBonds.com representative will issue you a bond rider for simple fixes, or assist with a new bond form if needed.
How to Get a Money Transmitter License in North Carolina
All North Carolina money transmitter license applications must be submitted via the Nationwide Multistate Licensing System & Registry (NMLS).
To get your license, include the following materials in your NMLS application:
- Completed MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- Audited financial statements from within the last 90 days proving a $250,000+ net worth
- Company-owned authorized money transmission locations
- Any other trade name you may use, if applicable
- 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 Do I Renew My North Carolina Money Transmitter License?
Money transmitter licenses in North Carolina expire annually. The renewal period is from November 1st to December 31st of each year. To renew your license, follow instructions from NMLS.
You can watch a self-paced e-learning course or refer to the Renewing Company License or Registration Guide for more information.
While there are no renewal fees, annual assessment must be paid for renewal approval. The NMLS also charges renewal fees.
