What is an Iowa Money Transmitter Bond?
Get acquainted with this licensure requirement for money transmitters in Iowa!
A surety bond is required to be submitted along with a Money Transmitter License application by the Superintendent of Banking of the Iowa Department of Commerce. The requirement is in pursuance of Section 533C.203 of the Iowa Code or the Uniform Money Services Act.
The surety bond will act as a guarantee that the Money Transmitter will lawfully conduct the following services:
- Receive money for transmission
- Sell or issue payment instruments to one or more persons
- Receive money from a person or persons for the purpose of paying the person’s bills, invoices, or accounts
What is the bond amount?
The bond amount is $50,000 plus $10,000 per business location. However, the bond amount should not exceed $300,000.
Those who have excellent credit scores may be eligible to pay a low bond premium or just 1% of the bond amount!
Get your FREE quote today to determine what you have to pay!
What are the Money Transmitter bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Iowa such as Surety Bond Authority
- The surety bond should be made payable to the State of Iowa
- The surety bond must be written in a form that is approved by the Superintendent of Banking of the Iowa Department of Commerce
- The Money Transmitter licensee is obligated to abide by the provisions of Section 533C of the Iowa Code or the Uniform Money Services Act, the rules and regulations of the Division of Banking of the Iowa Department of Commerce, and all the other applicable rules
- If the Money Transmitter licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- The surety bond will remain valid until canceled. In case of cancellation, a 30-day notice is required
How can I obtain this type of bond?
To secure this type of bond, the Money Transmitter licensee or license applicant must seek the assistance of a surety bond company.
You will first be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Ready to get bonded? Start HERE!