- March 27, 2017
- Posted by: Surety Bond Experts
- Categories: Money Transmitter Bond, Surety Bond, Surety Bond Producers
The New Year often brings new changes and opportunity. This is applicable in New Mexico for any business which operate as a Money Transmitter. As of January 1, 2017, the New Mexico Uniform Money Services Act requires that money transmitters post a surety bond.
What exactly is a money transmitter business?
This type of business sells or issues payment instruments, stored value or receives money. Under this new legislation, a money transmitter must:
- Obtain a bond that is $300,000, 1% of the total annual dollar volume of business of New Mexico
- The bond must be less than $2,000,000.00 (or $5,000,000.00 if the money transmitter has a negative financial history).
- The need for a license has now been expanded to other categories of money transmitters. Before, a license was only required if a money transmitter sold, registered or issued checks and money orders.
It is important to remember the use of a money transmitter surety bond. This surety bond protects any money transmitter’s customers from fraud and unethical practices. If found guilty of these practices, a claim may be filed against the money transmitter. The surety bond producer will pay the claim and then seek reimbursement from the money transmitter.
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