The passage of LB 186 will bring about some changes to Nebraska money transmitters’ surety bond amounts. The bill takes effect three months after the Nebraska legislature’s May 23 adjournment.
Currently, Nebraska money transmitters must post a surety bond of $100,000, plus $5,000 for each additional business location. The surety bond can be increased up to $250,000 by the director of the Department of Banking and Finance. LB 186 removes the requirement for a $5,000 surety bond increase per location, but new money transmitter applicants will still be required to post a $100,000 surety bond when applying for licensure. The increase to $250,000 at the director’s discretion also remains part of the law.
The change for Nebraska money transmitters comes after their first year of licensure, at which time the surety bond amount will depend on the dollar amount of transactions in the previous year. Per LB 186, the surety bond amounts required are as follows:
- Up to $2,000,000 in transactions�$100,000 surety bond
- $2,000,000.01 to $4,000,000 in transactions�$150,000 surety bond
- $4,000,000.01 to $6,000,000 in transactions�$200,000 surety bond
- $6,000,000 or more in transactions�$250,000 surety bond
If a licensee fails to maintain the correct surety bond amount, the Department must give the licensee 30 days’ written notice to comply with the law.
Nebraska money transmitters apply for licensure through the Nationwide Multistate Licensing System (NMLS) and the Department has created a licensing checklist for applicants. Some of the information applicants must submit is as follows:
- $1,000 licensing fee
- DBAs and trade names
- Money Services Business (MSB) number issued by the United States Department of the Treasury
- Audited financial statement for the most recent three fiscal years
- Business plan
- Certificate of authority/Good standing certificate
The Department’s checklist contains a full list of required applicant information. Nebraska money transmitters’ licenses expire annually on December 31 and they must submit the following information for renewal on or before that date:
- $250 licensing fee plus any processing fees required under Nebraska Revised Statutes 8-2730
- Copy of licensee’s most recent audited financial statement
- Any material changes from the original application not already reported to the Department
Nebraska Revised Statutes 8-2734 contains a full list of renewal requirements.
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