Colorado Money Transmitter Bond

A Colorado Money Transmitter Bond is a type of surety bond required to obtain a license.  While the license and surety bond is a requirement of the Colorado Division of Banking, the licensing process is managed by the Nationwide Mortgage Licensing System (NMLS). The minimum bond amount is $250,000 and the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Colorado Money Transmitter Bond

At Surety1.com we make it easy to obtain this surety bond. One application for all states. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Colorado Money Transmitter Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. Visit Surety1’s State-by-State Guide to Money Transmitter Bonds.

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Who Needs This Surety Bond?

A Money Transmitter License and bond is required of all entities that perform the following activities within the state of Colorado or for persons residing in Colorado:

• Bill paying
• Electronic money transmitting
• Foreign currency dealing or exchanging
• Issuing money orders
• Issuing prepaid access/stored value
• Issuing traveler’s checks
• Selling money orders
• Selling prepaid access/stored value
• Selling traveler’s checks

The surety bond is just one of the many requirements to obtain a license. A complete check list of the license requirements can be found here.

Required Surety Bond Amount

In order to get your money transmitter’s business license, you’ll need a bond. The minimum amount of the Colorado Money Transmitter Bond is $250,000 for estimated three year money transmission activity of $250,000 or less. Over $250,000 in projected activity, one must provide a $1,000,000 surety bond. Additionally, The Banking Board may, following notice to the licensee and an opportunity for hearing before the Banking Board, and upon the determination that customers of the licensee are at undue risk, order the licensee to increase the bond amount up to $2,000,000.

Before applying for a bond, the obligee (Colorado Banking Board) should be contacted to make sure the bond amount the applicant will be applying for is correct. A surety bond is required so all money transmitters in Colorado will comply with Title 12, Article 52 of the Colorado Revised Statutes along with other Colorado state laws. It does not protect the licensee. A surety bond is not insurance for the licensee.