Louisiana Money Transmitter Bond

The Office of Financial Institutions requires all parties that want to engage in money transmitting to get licensed. The licensing process is conducted via the Nationwide Multistate Licensing System and Registry (NMLS).

A major requirement you have to comply with is to post a surety bond. The Office sets the bond amount, which can be between $25,000 and $500,000. It has to be one percent of annual volume of money transmitted by your business. The purpose of your surety bond is to guarantee your compliance with Title 6, Chapter 13 of the Louisiana Revised Statutes, as well as any other relevant laws.

In order to get a Louisiana money transmitter license, you have to post a bond between $25,000 and $500,000. The exact bond amount is set on the basis of your annual volume of transmitted money. Your bond price is different from this amount and is called the bond premium. It is a few percents of the required amount, which are often between 1% and 5% for applicants with a good credit score.

The surety bond cost is formulated on the basis of a couple of important factors. They include your personal credit score, business finances, assets and liquidity, and professional experience. By examining them, your surety aims to assess how risky it is to get you bonded. The more stable your finances are, the smaller your bond premium is likely to be.

We know that getting the bond you need with problematic finances can be a rough tide. If you have a low credit score, bankruptcies, tax liens, or civil judgements, you can benefit from our Bad Credit Surety Bonds program. It’s designed with you in mind.

The premiums that you can expect are in the range of 5% to 10%. The higher price is needed in order to compensate for the increased bonding risk. As we work with numerous A-rated, T-listed surety companies, we can still offer you a top bond rate, whatever your financial situation is.

Our How to Get Bonded page is an extensive resource about the bonding process. If you want more details about it, make sure to check out this guide.

Have further questions? Just call us at (877) 514-5146. Lance Surety Bonds’ experts are here to help.

The goal of the Louisiana money transmitter bond that you provide as a part of your licensing is to protect your customers. If you fail to comply with the applicable state statutes, you can face a claim against your bond. This is how a harmed party can demand a fair compensation for your illegal or unethical actions.

The penal sum that can be sought is the bond amount you have posted. The surety that provided you with the bonding may step in to cover the claim costs at first, so that the claimant receives a fast compensation. You are liable for all payments, however. Thus, it’s best to avoid problematic situations that can lead to claims, as they can harm your business financially and in terms of its reputation.