Pennsylvania Money Transmitter Bond Overview
- Purpose: To guarantee money transmitters operate honestly and keep accurate records
- Who Needs It: All money transmitter professionals in Pennsylvania
- Regulating Body: The Pennsylvania Department of Banking and Securities
- Bond Amount: $1,000,000
- Minimum Price: $10,000–$15,000
In Pennsylvania, money transmitter professionals need a surety bond for state licensing. Read on to learn all about the bonding process.
What Is a Pennsylvania Money Transmitter Bond?
If you’re applying for a money transmitter license in Pennsylvania, the Department of Banking and Securities (DoBS) requires you to file a $1,000,000 surety bond.
This bond protects the state and consumers from unethical money transmission practices. It also ensures that you’ll keep honest records with the DoBS.
Who Needs a Money Transmitter Bond?
Any business that moves money or virtual currency for a fee needs a money transmitter license. These are also known as money services businesses (MSBs).
Banks and other regulated financial institutions typically do not need a separate money transmitter license. Unlicensed agents can act on behalf of a licensed money transmitter with a written agreement.
How Much Do Money Transmitter Bonds Cost in Pennsylvania?
Pennsylvania money transmitter bond premiums start at $10,000, or 1% of the bond amount. When you apply, the surety will run a soft credit check and review your financials to determine your personalized rate.
Click below to apply for a free quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees. Financing is available to lower the upfront cost of your premium.
How Does a Pennsylvania Money Transmitter Bond Work?
A Pennsylvania money transmitter bond is a legal contract between three parties: you, the Pennsylvania DoBS and the surety.
| Bond Party | Description |
|---|---|
| Principal | The money transmitter filing the bond |
| Obligee | The Pennsylvania Department of Banking and Securities requiring the bond |
| Surety | The issuing surety provider |
This bond is your financial guarantee to the DoBS that you’ll uphold state regulations and operate honestly.
What Is the Money Transmission Law in Pennsylvania?
All money transmitters must comply with the Pennsylvania Money Transmitter Act. This law prohibits the following practices:
- Mishandling client funds
- Failing to submit accurate financial records
- Making false or misleading advertising claims
- Continuing operations when liabilities exceed assets
If you commit any of these acts, harmed parties can file claims against your bond. The surety will pay valid claims up to the full $1,000,000 bond amount. However, you must ultimately refund the surety.
How Do I Get a Money Transmitter Bond in Pennsylvania?
SuretyBonds.com makes the bonding process fast, easy and secure. This bond requires a quick credit check for exact pricing. Once we have your information, we’ll send you a quote within one business day.
After paying the invoice, select your FedEx shipping option to receive your official bond form within one to three business days.
How Do I Renew My Money Transmitter Bond?
Pennsylvania money transmitter bonds expire annually. We’ll send you reminders by phone and email starting 90 days before the renewal date.
Simply pay the attached invoice to extend your bond term for another year.
Can I Make Changes to My Bond?
Yes, you can often make minor changes, such as name and address, by contacting your surety company. You cannot update the bond form yourself.
If you purchased your bond from us, email [email protected] with the needed change.
How to Become a Money Transmitter in Pennsylvania
The Pennsylvania DoBS licenses money transmitters through NMLS. To apply, submit the following documents:
- Proof of a tangible net worth of $500,000
- $1,000,000 surety bond
- Credit report and background check for control persons
- 3 years of audited financial statements
- Designated bank account used for client transactions
- Business registration documents
- Description of your anti-money laundering (AML) program
- Detailed business plan and transaction flow chart
- Copies of consumer contracts and forms
- Insurance and bank letters of reference
- Payment for the $5,120 application and processing fees
In addition to the state license, you must register with the U.S. Department of Treasury.
All money transmitter licenses are issued on January 1 and expire annually on December 31. The DoBs requires you to regularly report new authorized agents acting on your behalf.
