Money Transmitter Bond

[h2o]

What is the purpose of this type of bond?

[lifeisgood]

Money Transmitter license laws are usually enforced and administered by the state's department of financial institutions or the banking department. The regulated activity is commonly consistent for persons selling or issuing payment instruments,i.e., engaging in the business of receiving money for transmission or transmitting money, and receiving money for obligors. The terminology for money transmitting includes transmission by any means within the United States or to/from locations abroad by payment instrument, wire, facsimile, electronic transfer, courier or otherwise.

[h2o]

Originally Posted by lifeisgood

Money Transmitter license laws are usually enforced and administered by the state's department of financial institutions or the banking department. The regulated activity is commonly consistent for persons selling or issuing payment instruments,i.e., engaging in the business of receiving money for transmission or transmitting money, and receiving money for obligors. The terminology for money transmitting includes transmission by any means within the United States or to/from locations abroad by payment instrument, wire, facsimile, electronic transfer, courier or otherwise.

So what is the actual purpose of this bond?