Surety Bond Encyclopedia

Money Transmitter - NMLS Bond - Statewide in South Carolina

Brief Summary

South Carolina does not use one flat bond amount for money transmitters. The floor is $100,000 and the figure rises with your average daily transmission liability in the state, up to $500,000. A surety bond lets you meet the security requirement in Section 35-11-215 without posting a letter of credit or cash, and you size it to the formula rather than guessing.

A money transmitter licensed in South Carolina must provide and keep in place security under S.C. Code Section 35-11-215. The amount is the greater of $100,000 or 100 percent of the licensee's average daily money transmission liability in South Carolina for the most recently completed three-month period, up to $500,000. A licensee whose tangible net worth exceeds 10 percent of total assets maintains a $100,000 bond. The license is issued by the South Carolina Attorney General and applications are filed through NMLS.

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How to Apply for a Money Transmitter - NMLS Bond:

Work out your required amount: the greater of $100,000 or 100 percent of average daily South Carolina transmission liability for the most recent three-month period, capped at $500,000.
Check whether tangible net worth exceeds 10 percent of total assets, which allows a $100,000 bond.
Have the legal entity name exactly as it appears in your NMLS company record.
Complete the bond application and provide the financial information the surety requests.
Confirm the current bond form and submission method with the Attorney General's Money Services Division.
Submit the license application through NMLS with the $1,500 application fee and $1,600 license fee.

Detailed Information About the South Carolina Money Transmitter - NMLS Bond:

The amount is a formula

Section 35-11-215 of the South Carolina Uniform Money Services Act requires an applicant to provide, and a licensee to maintain at all times, security in the greater of $100,000 or an amount equal to 100 percent of its average daily money transmission liability in South Carolina for the most recently completed three-month period. The figure is capped at $500,000. A new applicant with little South Carolina volume starts at $100,000. A licensee moving large sums through the state can owe up to five times that.

The net worth exception

If the licensee's tangible net worth exceeds 10 percent of its total assets, the statute lets it maintain a surety bond of $100,000 instead of the liability formula. Larger, well capitalized companies should check this before buying a bond sized to their volume.

Who regulates it

The Act names the South Carolina Attorney General as the Commissioner. Licensing is handled by the Money Services Division of the Attorney General's Office, and all applications go through the Nationwide Multistate Licensing System (NMLS). The security may be a surety bond, a letter of credit, or other similar security in a form acceptable to the Commissioner. Confirm the current bond form and how it is to be submitted with the Money Services Division before the bond is issued.

Who needs a license

Section 35-11-200 bars anyone from engaging in money transmission in South Carolina unless the person is licensed, is an authorized delegate of a licensee, or is exempt under Section 35-11-110. The Attorney General's FAQ confirms that an authorized delegate of a license holder does not need its own license for the activities covered by its delegate agreement. Check cashing is licensed separately by the South Carolina Board of Financial Institutions.

Net worth, fees and renewal

Section 35-11-230 requires tangible net worth of the greater of $100,000 or 3 percent of the first $100 million in total assets, 2 percent of additional assets from $100 million to $1 billion, and one half of 1 percent of additional assets over $1 billion. The application carries a $1,500 nonrefundable application fee and a $1,600 license fee. Licenses renew every year on a January 1 to December 31 term, and the $1,600 renewal fee is paid no more than 60 days before expiration.

Older figures may be out of date

The Attorney General's Office notes that the Act, effective July 2, 2024, changed the net worth, surety bond and permissible investments requirements. Bond amounts quoted from earlier versions of the law should not be relied on.

Eligibility and Requirements for a South Carolina Money Transmitter - NMLS Bond:

Security in the form of a surety bond, letter of credit, or similar security acceptable to the Commissioner.
Bond amount of at least $100,000 and no more than $500,000 under Section 35-11-215.
South Carolina Attorney General, acting as Commissioner, as the regulator the security runs to.
Tangible net worth that meets Section 35-11-230 at all times.
Security maintained continuously while licensed, and resized when the liability formula changes the required amount.

South Carolina Money Transmitter - NMLS Bond FAQs:

How much bond do I need?

The greater of $100,000 or 100 percent of your average daily money transmission liability in South Carolina for the most recently completed three-month period, up to a maximum of $500,000. Most new applicants start at $100,000.

Can I stay at $100,000 as my volume grows?

Yes, if your tangible net worth exceeds 10 percent of your total assets. Section 35-11-215 lets a licensee in that position maintain a $100,000 surety bond regardless of volume.

Do I have to use a surety bond?

No. The statute accepts a surety bond, a letter of credit, or other similar security in a form acceptable to the Commissioner, who is the South Carolina Attorney General.

Does an authorized delegate need its own bond?

An authorized delegate of a license holder does not need its own license from the Money Services Division for the activities covered by its delegate agreement. The security requirement sits with the licensee.

What are the fees and when does the license renew?

A new application carries a $1,500 nonrefundable application fee and a $1,600 license fee. Licenses run from January 1 to December 31 and renew each year with a $1,600 fee paid no more than 60 days before expiration.