In the financial services sector, money transmitters play a crucial role in facilitating the movement of funds from one location to another. In the state of Maine, as in many other jurisdictions these businesses are required to obtain a money transmitter surety bond as part of their licensing process. The surety bond form in this state is the same for money transmitters, money order sales and travelers check issuing businesses. A Maine money transmitter surety bond is a type of financial guarantee required to operate legally in Maine. It serves as a form of protection for consumers and the state against potential financial losses resulting from fraudulent activities or non-compliance by the money transmitter. Pursuant to Title 32 MRSA, . . .
Principal shall faithfully perform the duties and obligations pertaining to the transmission of money, or the sale of money orders or travelers checks, pursuant to 32 M.R.S.A. §6101 et seq., to be conducted in accordance with the tenure of the license of said business issued by the Superintendent of the Bureau of Consumer Credit Protection of the State of Maine under the authority of, and as provided in Title 32 M.R.S.A. §6101 et seq., and shall conform and abide by each and every applicable provision of 32 M.R.S.A. §6101 et seq., and to all rules and regulations lawfully made by the Superintendent hereunder and shall pay to the State and to any such persons any and all monies that may become due or owing to the State or to such persons from said Principal, under and by virtue of the provisions of 32 M.R.S.A. §6101 et seq.
The specific bond amount required for money transmitters in Maine can vary, typically determined by state authorities based on factors such as the volume of transactions, financial stability, and business history of the money transmitter however the Maine money transmitter surety bond form is provided by the state in a fixed penalty of one hundred thousand dollars ($100,000). The bond penalty must provide adequate coverage for potential claims while ensuring the financial viability of the money transmitter. Money transmitter surety bonds are not indefinite. (See 32 M.R.S. §6103 and Bureau Rule Ch. 709 for more information on the bond amount.) They typically have a specific term (one year) after which they must be renewed. Failure to renew the bond could result in the suspension or revocation of the money transmitter's license, leading to a halt in operations.Surety company may also exercise its right to cancel the bond if they find the money transmitter engaging in dishonest or unethical practices, has experienced significant negative financial performance or creditworthiness.
The Maine money transmitter surety bond is a vital component of the regulatory framework governing the money transmission industry in Maine. It provides consumers and the state with a degree of financial protection and assurance that money transmitters will conduct their operations responsibly and in compliance with the law. For money transmitters, obtaining and maintaining the surety bond is not just a legal requirement but also a demonstration of their commitment to maintaining trust and integrity within the financial services sector. Questions, applications and other correspondence may be directed to the following however the money transmitter bond must be filed by your bonding company through the NMLS portal:
35 State House Station
Augusta, ME 04333
Phone: (207) 624-8527 (TTY 711)
Toll Free: (800) 332-8529
Fax: (207) 582-7699
Maine surety bond leader, Surety One, Inc. specializes in the bonding needs financial institutions, money transmitters and cryptocurrency specialists . We offer surety bonds and fidelity bonds to financial services operators and traders in all fifty states, Puerto Rico and U.S. Virgin Islands. Although applicant financial condition is a factor in bond underwriting, we have programs to fit EVERY credit condition. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for a live chat for a Maine money transmitter bond application or to discuss your particular needs.
NOTE: This class of business benefits from the protection of a commercial crime coverage. See our fidelity bond offer here.
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