New Hampshire Money Transmitter Bond

Operating a money transmission business in New Hampshire comes with strict licensing and bonding requirements to protect consumers and ensure ethical business practices. A key part of this licensing process is securing a New Hampshire Money Transmitter Bond, which acts as a safeguard for clients and the state. Any company or individual transferring funds, issuing payment instruments, or providing related services must obtain this bond before receiving their license.

A New Hampshire Money Transmitter Bond is a type of license and permit surety bond required by the New Hampshire Banking Department. It guarantees that licensed money transmitters comply with state laws and handle client funds responsibly. If a business engages in fraud or other violations, the bond provides a means for harmed parties to seek compensation. This requirement promotes trust between consumers and financial service providers.

The total cost depends on the bond amount set by the state, your company’s financial profile, and the surety’s underwriting.

Bond Amount

Under New Hampshire law (NH Rev Stat § 399-G:3), the bond amount is typically $100,000, but it may be increased based on transaction volume or risk level. The Banking Department reviews each application to determine the final required amount.

Premium

Applicants do not pay the full bond amount. Instead, they pay an annual premium—generally between 1% and 5% of the bond amount—based on creditworthiness and financial stability. For example:

• $100,000 bond at 1% premium = $1,000/year
• $150,000 bond at 3% premium = $4,500/year
   

Bond Term

Most bonds are issued for a one-year term. Premiums are paid at the start of each term, though some sureties may offer multi-year pricing options.

Renewals

Renewals are straightforward. Surety providers typically send notices before expiration, and renewal is often as simple as paying the annual premium. Keeping the bond active is essential for maintaining your license.

Financial and Legal Qualifications

Applicants must demonstrate financial stability and compliance readiness. The Banking Department typically requires audited financial statements, proof of minimum net worth, and confirmation of no outstanding legal actions or regulatory violations.

Bond Duration and Cancellation

The bond must remain active while the license is valid. A surety may cancel the bond by giving at least 30 days’ written notice to the Banking Department. If the bond is canceled without a replacement, the license may be suspended or revoked.

Obtaining a bond is part of the licensing process through the Nationwide Multistate Licensing System (NMLS).

Apply Through the NMLS System

Submit your license application through the NMLS, providing details about your business operations, ownership, and financial background.

Prepare Financial Documents

Have recent audited financial statements, tax returns, and any other supporting documents ready for review.

Obtain a Surety Bond

Work with a licensed surety provider to secure your bond. For detailed guidance, review this resource on how to get a money transmitter license.

Submit Application

Once your bond is issued, submit it electronically via NMLS along with your completed application package.

Annual Renewal

Both the license and the bond must be renewed annually to remain compliant.

Purchase the Required Surety Bond

Ensure you purchase the bond in the exact amount set by the Banking Department.

File the Bond Electronically

File your bond through the NMLS for verification and record-keeping.

Include Bond Details

Provide accurate bond information in your application, including bond amount, effective date, and surety provider details.

Maintain Net Worth

New Hampshire requires licensees to maintain a minimum net worth, verified annually. This ensures the business can fulfill its obligations to customers and regulators.

Timely renewal is critical. Most sureties send reminders in advance, making it easy to avoid lapses. Proof of renewal is sent directly to NMLS. An active bond helps maintain consumer trust and keeps your license in good standing.

Failing to obtain or maintain the bond can result in license suspension or revocation, fines, and legal action. Operating without a valid bond is a violation of New Hampshire state law and may carry both civil and criminal penalties.

Besides bonding, money transmitters must comply with state and federal requirements, including:

• Anti-Money Laundering (AML) program compliance per the Bank Secrecy Act (FinCEN)
• Cybersecurity measures to protect consumer data
• Possible additional insurance coverage for operational and data security risks
   

For more details, see this guide on money transmitter bonds.

New Hampshire Banking Department. (n.d.). Money Transmitters. Retrieved from
https://www.banking.nh.gov/

NH Rev Stat § 399-G:3. (n.d.). Retrieved from
https://www.gencourt.state.nh.us/

Nationwide Multistate Licensing System. (n.d.). Money Services Businesses. Retrieved from
https://mortgage.nationwidelicensingsystem.org/

U.S. Department of the Treasury – Financial Crimes Enforcement Network. (n.d.). Bank Secrecy Act. Retrieved from
https://www.fincen.gov/

JW Surety Bonds. (n.d.). Money transmitter bond. Retrieved from
https://www.jwsuretybonds.com/license-bonds/money-transmitter-bond

JW Surety Bonds. (n.d.). How to get a money transmitter license. Retrieved from
https://www.jwsuretybonds.com/licensing/money-transmitters/