To obtain a money transmitter license in Iowa, you must post a Iowa Money Transmitter Bond. Every state requires a surety bond to operate as a money transmitter. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license. Surety1.com provides a single, online application for all states.
A surety bond is made to protect the public. In basic terms, it guarantees your business will adhere to all laws and requirements in your industry. In the event your business conducts unlawful acts, a consumer of your services may file a claim on the bond.
Nearly any company that offers payment services requires a money transmitter bond. Due to a history of fraudulence and inaccurate money transmissions, state agencies now require this bond to protect consumers. While this bond does not protect the business owner, it offers proof that your business handles clients’ money responsibly.
The cost of the bond, the “premium,” depends largely on the bond amount and the applicant’s financial status. The state requiring the bond determines the amount. At Surety 1, we will find you the lowest quote for your bond, starting at only 1.5% of the bond amount.
In order to get your money transmitter’s business license, you’ll need a bond.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
This bond is required to ensure the principle will comply with Iowa’s Uniform Money Services Act (Iowa Code Chapter 533C) along with other rules and regulations in Iowa.
These are additional details about the licensing process that you should be aware of. (Only the bond is handled at Surety1, but this information will help you get your license.)
All licensing fees are required by the obligee, not the surety company.
Information must be included on the application is as follows:
The license application can be filled out using an electronic system referred to as NMLS. Although, for businesses that are not conducting multi-state businesses or do not want to use the electronic application system can also have access to other application forms.
Money transmitters in Iowa must also register as a money services business (MSB) with the Federal Crimes Enforcement Network (FinCEN). The registration process must be completed by the Bank Secretary Act (BSA) e-filing system.
At surety1.com we make it easy to apply for your Iowa Money Transmitter Bond. Simply complete our easy to use, online application. Then, usually within one business day on of our surety bond professional agents will contact you with a free, no obligation quote. Occasionally, the surety may required additional information before we can provide the quote. Not to worry, your agent will be there every step of the way to walk you through the process.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003.
Learn more at the Iowa Division of Banking, and see a checklist for new money transmitter license applications at NMLS.