South Carolina Money Transmitter Bond Requirements
When you apply to get licensed as a money transmitter in South Carolina, you will need to submit a money transmitter bond.
The minimum amount of your bond must be $50,000 with $10,000 added to it for every additional location in which you intend to operate. The maximum amount is $250,000.
While the money transmitter license in South Carolina is regulated by the Money Services Division, applicants for a license must apply through the Nationwide Multistate Licensing System & Registry (NMLS).
Why Do I Have to Get Bonded?
The purpose of this surety bond is to guarantee your compliance with the provisions of the Anti-Money Laundering Act. It guarantees that you will act in accordance with all applicable conditions when acting as a money transmitter.
If you violate these provisions and cause losses to any person as a result, that person may file a claim against your bond to seek compensation. The surety company which has issued the bond must then investigate the case and determine whether and what amount of compensation to extend.
Such compensation may even be as high as the full penal sum of your bond.
For a thorough explanation of how surety bonds work and why you need one, see our ‘What is a surety bond’ guide!
See the sections below for full information about how much it costs to get bonded, what bond claims are, and how to apply for your bond.
If you’d rather speak to someone in person, call us at 866.450.3412 anytime!
What’s The Cost of Getting a South Carolina Money Transmitter Bond?
The surety bond cost, also known as the bond premium, is equal to a certain percentage of the full amount of your bond. It is determined by your surety when you apply to get bonded.
To see the right bond premium for you, your surety will consider a variety of factors about your financial situation.
Factors That Determine Your Bond Premium
Your personal credit score is the main factor that sureties use when setting your bond rate. Applicants with higher scores are considered less likely to experience a claim against their bond, and therefore their rates are lower.
If you have a FICO score of 700, you can expect your bond rate to be between 1% and 3% of the full bond amount.
Applicants who have a somewhat lower score, but still considered within a moderate range, are usually bonded at a rate between 3% and 5%.
Along with your credit score, your surety is likely to request to review other aspects of your financial and professional status. These include:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
Get an estimate of the cost of your bond, based on your credit score, from the table below!
|South Carolina Money Transmitter Bond Cost Based on Credit Score|
|License type||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
|South Carolina money transmitter||$50,000||$500-$1,500||$500-$1,500||$500-$1,500||$1,500-$2,500|
What Can Give Rise to a Bond Claim?
A bond claim occurs when a bonded business or person violates the conditions of their bond agreement. Bond agreements bind parties to comply with state laws and regulations. If a transmitter violates these laws and causes losses to a person who has made use of their services, that person may file a claim.
When a claim is filed, the surety that backs the bond must investigate it to determine whether it must extend compensation and what amount. Once the surety extends compensation to cover the claim, the bonded transmitter must reimburse it in full.
Under the bond agreement, a surety is not liable for any violations of the bond agreement by the bonded party. For this reason, a transmitter who has violated their agreement must repay the surety for its compensation. To avoid bond claims altogether it is best to strictly comply with the conditions of the bond agreement.
How to Get Your Bond
To apply for your money transmitter bond, click on the banner below and complete the simple application form. We will contact you shortly with your free quote, along with further information on completing the bonding process.
If you have any questions about getting this bond or surety bonds in general, get in touch with us at 866.450.3412 anytime!