Florida Money Transmitter Bonds
Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your Florida money transmitter bond needs.
What Are They?
Florida money transmitters are licensed to receive funds from customers and transmit them to someone else. Because of the potential for financial harm to the public, purchasing a Florida money transmitter bond is a requirement for licensure as a money transmitter in the state of Florida. These bonds serve three important purposes:
- They guarantee that money transmitters will operate in compliance with all applicable Florida statutes.
- They indemnify the state of Florida against responsibility for financial harm customers suffer due to the unlawful or unethical actions of Florida money transmitters.
- They provide funds for compensating customers of money transmitters for losses stemming from such unlawful or unethical actions.
Any violation of the terms of a Florida money transmitter bond can result in a claim for damages.
Who Needs Them?
The Florida Office of Financial Regulation, Financial Institutions Division issues two types of money transmitter licenses:
- Part II. These are for money transmitters and payment instrument issuers.
- Part III. These are for foreign currency exchangers and check cashers.
Anyone applying for a Part II license must purchase a Florida money transmitter bond as part of the licensing process.
The required bond amount (the bond’s “penal sum”) is based on a money transmitter’s annual sales volume, with a minimum of $50,000 and a maximum of $2 million. There must be a valid Florida money transmitter bond in force at all times to avoid license suspension or revocation.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
A surety bond agreement for a Florida money transmitter bond is a legally binding contract between three parties:
- The Florida Office of Financial Regulation is the “obligee” requiring the bond.
- The Florida money transmitter is the “principal” required to purchase the bond.
- The bonding company underwriting and authorizing the bond is the “surety”.
The surety bond agreement makes the principal solely responsible for paying valid claims against the bond. When a claim is filed against a Florida money transmitter bond, the surety will first investigate to make sure it’s valid and then pay the claim on behalf of the principal.
What Do They Cost?
The annual premium for a Florida money transmitter bond is a small percentage of the bond’s penal sum. While the obligee establishes the penal sum for a given principal, the surety sets the premium rate, which is based largely on the principal’s personal credit score. The principal’s financial strength and history in the money transmission industry are also taken into consideration. A well-qualified principal may be assigned a premium rate as low as 0.5% to 1%.
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Our surety bond professionals will get you the Florida money transmitter bond you need at a competitive rate.