Utah Money Transmitter Bond

To obtain a money transmitter license, every state requires a surety bond. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license.

Why Do I Need This Bond?

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.

How Much Will the Bond Cost?

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.

 

Money Transmitter Bond

In order to get your money transmitter’s business license, you’ll need a bond.

• Required by: Utah Department of Administrative Services
• Minimum bond amount: $50,000
• Maximum bond amount: Varies
• Valid: Continuous

This bond type is continuous, which means it is in full force until it is cancelled. If the bond is cancelled, the principle must notify the obligee of the cancellation within 30 days before the effective date of the cancellation.

The bond guarantees the principle will comply with the Rule 331-14 of the Utah Administration Code along with other Utah state laws. The principle must also comply with Title 7 Chapter 25 of the Utah Code Annotated or the Money Transmitter Act.

The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.

 

Money Transmitter License

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.)

License Requirements:

1. Surety bond
2. Financial statement of the recent fiscal year providing poof of net worth of at least $1,000,000
3. Proof that the business is a depository institution that is regulated by a U.S. state other than Utah
4. Non-refundable $100 filing fee
5. Any additional supporting documents requested by the Department

All licensing fees are required by the obligee, not the surety company.

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 Utah 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.

See a checklist for new money transmitter license applications from NMLS.