One requirement to obtain a Money Transmitter License in Colorado is to provide a Colorado Money Transmitter Bond. This is a type of surety bond and every state requires a money transmitter surety bond to obtain a license. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license. Click here to visit our state by State by State guide to money transmitter bonds. While the license is a requirement of the Colorado Division of Banking, the license application is processed through the Nationwide Mortgage Licensing System (NMLS). The required surety bond is filed electronically with the NMLS. This license is required of all entities that perform the following activities within the state or for persons residing in the state:
- 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.
Money Transmitter Bond
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. The surety bond premium is small percentage of the required bond amount.
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.
How do I Obtain a Colorado Money Transmitter Bond?
At Surety1 we make it easy to obtain this bond. Simply:
- Complete the easy to navigate and secure online application. 1
- One of our surety bond agents will be in touch with you to complete the process, usually within one business day. For the Pennsylvania required bond amount, additional financial disclosures, similar to what needs to be provided to the State, will be required by the surety to obtain the bond.
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents.
- Sign some paperwork and pay the bond premium.
Once these steps have been completed, Surety1.com will file the Colorado Money Transmitter Bond electrically with the NMLS.
1 – The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
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.