North Dakota Money Transmitter Bond Overview
- Purpose: To ensure money transmitters follow state laws and conduct business ethically
- Who Needs It: Licensed money transmitters in North Dakota
- Regulating Body: The North Dakota Department of Financial Institutions
- Bond Amount: $100,000-$500,000
- Minimum Price: $1,000 or 1%
What Is a North Dakota Money Transmitter Bond?
North Dakota money transmitter bonds are required to ensure money services businesses conduct business as outlined in the Money Transmission Modernization Act.
This bond protects clients from fraud and holds money transmitters financially responsible if they engage in illegal business practices.
Who Needs a Money Transmitter Bond?
The North Dakota Department of Financial Institutions requires all money transmitters to purchase a minimum $100,000 surety bond.
North Dakota recognizes money transmitters as any person or business who participates in any of the following actions for a fee:
- Selling insurance or payment instruments
- Foreign and domestic money transmission services
- Issuing or selling traveler’s checks, money orders, drafts or prepaid access/stored value
- Bill paying
- Payroll processing services
- Electronic money transmitting
- Other money services
Bond Coverage Requirements for North Dakota Money Transmitters
North Dakota money transmitters need a minimum $100,000 surety bond. If your average daily money transmission liability is greater than $100,000, your bond amount must equal that average value.
For example, if a licensee averages a $300,000 daily money transmission liability, they must get a $300,000 surety bond. The average daily money transmission amounts are calculated for the most recently completed three-month period up to a maximum of $500,000.
How Much Do Money Transmitter Bonds Cost in North Dakota?
The cost of a North Dakota money transmitter bond varies based on bond amount, credit score and sometimes other financial factors. Rates start at 1% or $1,000. Get your personalized quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a North Dakota Money Transmitter Bond Work?
When you purchase a North Dakota money transmitter bond, you enter a three-party agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the licensed money transmitter |
| 2. Obligee | The North Dakota Department of Financial Institutions |
| 3. Surety | The issuing surety provider |
The agreement ensures money transmitters conduct business according to North Dakota Law. If contract terms are broken, harmed parties receive compensation for damages and the principal must then reimburse the surety.
How Do I Get a Money Transmitter Bond in North Dakota?
To get a money transmitter bond in North Dakota, complete the following steps:
- Verify your required bond amount
- Apply for a quote online
- Receive a personalized quote within one business day
- Purchase your surety bond
How Do I File My Bond?
The surety company will upload your electronic money transmitter bond form directly to the Nationwide Mortgage Licensing System (NMLS) under your name. All you need to do is authorize the surety company in NMLS under the Tasks tab.
To grant authority, provide the surety identifier (NAIC/NPN) or entity name. Read Granting Authority to Your Surety Bond Issuer for more detailed instructions.
How Do I Renew My Money Transmitter Bond?
If you plan to renew your North Dakota money transmitter license, you’ll also need to renew your surety bond which expires annually.
Within 90 days of the expiration date, a SuretyBonds.com representative will contact you to help you with the process.
How Do I Update My Bond Information?
If you need to update basic information on your surety bond, we can likely issue 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 Transmitter License in North Dakota
To get a money transmitter license in North Dakota, submit an application via NMLS. First, verify you meet the pre-requisite requirements for a license application:
- Maintain a tangible net worth >$100,000 (or greater if total assets exceed $100 million)
- Be in good standing with the North Dakota DFI
If you meet pre-requisites for a license application, include the following materials in your NMLS application:
- Completed MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- Credit report for all control persons
- Criminal background check for all control persons
- Money transmitter surety bond
For more detailed information check out the NMLS Licensing Checklists, Requirements, and Fees.
How Much Does it Cost to Get A North Dakota Money Transmitter License?
There are several fees when applying for your license. You can expect the costs outlined in the table below.
| Fee Type | Amount |
|---|---|
| Application Fee | $450 |
| License Registration Fee | $400 |
| NMLS Processing Fee | $120 |
