- March 27, 2017
- Posted by: Surety Bond Experts
- Category: 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.
We here, at GotSuretyBonds.com are an independent bond-only agency, committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each and every one of them unsurpassed attention and support to ensure a mutually beneficial relationship. We have a keen understanding that success for everyone is only possible through helping all of our constituents achieve their goals and objectives, we believe that a truly satisfied customer, employee or vendor is the best business strategy of all. Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. Because of our credibility within the underwriting community and longevity in the industry, we are able to act as powerful advocates for our clients. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.