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How much does a North Dakota money transmitter bond cost?
The North Dakota Department of Financial Institutions requires money transmission professionals to post surety bonds to legally work within the state. Before beginning the bonding process, applicants should verify their required bond amount with the state in which they choose to do business. This bond must have between $150,000 and $500,000 in coverage, as determined by the state.
This specific bond type is subject to underwriting, meaning the amount you’ll pay depends on a review of your personal credit report, as well as your required bond amount. Don’t worry about bad credit affecting your chance of posting a bond. The experts at SuretyBonds.com make the bonding process fast and easy for all applicants. Request your free bond quote now!
If you’re ready to become bonded quickly, easily, and accurately, call SuretyBonds.com at 1 (800) 308-4358 or submit a bond request. We can typically provide your free, no-obligation bond quote within one business day of submitting an application.
Why do I need a North Dakota money transmitter bond?
North Dakota money transmitter surety bonds guarantee that principals (money transmission professionals) conduct business in compliance with Chapter 13-09 of the North Dakota Century Code and all other laws applicable to the business of money transmission. If fraudulent activity occurs as a result of malpractice conducted by the principal, consumers will not face any financial harm. Acts of malpractice include:
- The licensee violates any provisions of Chapter 13-09
- The licensee conducts its business in an unsafe or unsound manner
- The licensee applies for an adjudication of bankruptcy
Other acts of malpractice can be found below in the North Dakota Century Code Chapter 13-09.
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How to get a North Dakota money transmitter license
To become a North Dakota licensed money transmitter, applicants must have the following prerequisites:
- The applicant must maintain a minimum net worth of at least $100,000 at all times to apply for this license.
- The applicant must be in good standing with the state of North Dakota.
Money transmitter applications must include the addresses and names of the owners, officers, trustees, members, partners, and directors of the agency. All required fees and a surety bond must accompany each application.
Steps to obtaining a North Dakota money transmitter license include the following submissions:
- An MU1 form through NMLS
- Financial/banking statements; for money transmitters, this also includes audited financial statements for the past two fiscal years (if publicly traded, the most recent Form 10K is also needed)
- Authorized agent locations
- Credit check
- Criminal background check
- A documented set of fingerprints
- Surety bond
- Agency’s business plan
- Certificate of good standing from the state
- Anti-Money Laundering/Bank Secrecy Act policy
- Management chart and formation documents
- Document samples
- “Flow of funds” structure
- List of permissible investments
- Estimated maintained minimum net worth
Examples of what these uploaded documents should look like can be found here.
Licensing fees include:
- $400 registration
- $450 application
- $15 credit report (per control person)
- $36.25 criminal background check (per person)
- $.25 Uniform Authorized Agent Reporting Annual Processing (after 100 agents, this fee must be paid per agent, with a cap of $25,000 per licensee in any single year)
Other required information can be found below in the “Additional Resources” section.
Upon the filing of the application, a mandatory investigation will be conducted to determine whether all required criteria have been met by the applicant.
Considerations for North Dakota money transmitter bonds
North Dakota money transmitter surety bonds remain in effect for one year after purchase and can be renewed each year with a $450 fee. The surety can cancel the bond at any time via written notice 30 days prior to the effective cancellation date.