Colorado Money Transmitter Bond Overview
- Purpose: To guarantee money transmitters operate honestly and keep accurate records
- Who Needs It: All money transmitter professionals in Colorado
- Regulating Body: The Colorado Division of Banking
- Bond Amount: $1,000,000 for most licensees
- Minimum Price: $1,250 or 0.5% of the bond amount
In Colorado, all money transmitter professionals need a surety bond for state licensing. Read on to learn all about the bonding process.
What Is a Colorado Money Transmitter Bond?
If you’re applying for a money transmitter license in Colorado, the Division of Banking (DOB) requires you to file a surety bond.
A Colorado money transmitter bond protects the state and your clients from fraudulent or negligent business practices. It also ensures that you’ll keep honest financial records.
Who Needs a Money Transmitter Bond?
In Colorado, businesses that provide the following services must be licensed and bonded with the DOB:
- Bill payment
- Electronic money transmission
- Foreign currency exchange
- Issuing or selling money orders
- Issuing or selling prepaid access (stored value)
- Issuing or selling traveler’s checks
Banks, government agencies and other similar institutions are exempt.
Bond Coverage Requirements for Colorado Money Transmitters
The standard bond amount for Colorado money transmitters is $1,000,000. You can request a reduction to $250,000 by submitting a written request with financial documentation that proves lower risk.
The DOB may also increase your amount up to $2,000,000 if it determines your clients are at “undue risk,” such as in cases of financial instability or regulatory violations. If this applies, you’ll be notified in advance and given the chance for a hearing.
| 3-Year Projected Business Volume | Bond Amount |
|---|---|
| Less than or equal to $250,000 | $250,000 |
| Over $250,000 | $1,000,000 |
| Determination of undue risk | $2,000,000 |
How Much Do Money Transmitter Bonds Cost in Colorado?
Colorado money transmitter bond premiums start at $1,250 for $250,000 coverage, or just 0.5% of the bond amount. We'll calculate your personalized premium by doing a soft credit check and reviewing your financials.
Click below to apply for a free quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Colorado Money Transmitter Bond Work?
A Colorado money transmitter bond is a legal contract between three parties: you, the Colorado DOB and the surety.
| Bond Party | Description |
|---|---|
| 1. Principal | The money transmitter professional purchasing the bond |
| 2. Obligee | The Colorado Division of Banking requiring the bond |
| 3. Surety | The issuing surety provider |
By filing this bond, you promise to uphold Colorado Revised Statutes Title 11, Article 110. This law prohibits the following practices:
- Failing to cooperate with investigations
- Making false or misleading claims to consumers
- Mishandling client funds
- Submitting inaccurate financial records
If you commit any of these acts, harmed parties can file claims against your bond to recover financial losses. The surety will pay valid claims up to the full bond amount. However, you ultimately must refund the surety.
How Do I Get a Money Transmitter Bond in Colorado?
SuretyBonds.com makes the bonding process fast, easy and secure. For exact pricing, we’ll need to run a quick credit check and review your financial statements.
Apply using the form on this page and you’ll receive a quote within one business day.
How Do I File My Bond?
We’ll upload your official bond form to NMLS on your behalf. However, you’ll need to grant authority to your issuing surety provider.
When you log in to your NMLS account, enter the surety’s name or surety identifier (NAIC/NPN) as found on your bond form. Your bond can’t be accepted by the DFI until you authorize the surety.
How Do I Renew My Money Transmitter Bond?
Colorado money transmitter bonds expire annually. We’ll send you reminders by phone and email starting 90 days before the renewal date.
If your company’s risk changes, you’ll need to contact your surety company to update your bond amount. Otherwise, simply pay the attached invoice to extend your bond term for another year.
How Do I Update My Bond Information?
Your surety company can typically make small changes to your bond form by issuing a bond rider. You cannot update the bond form yourself.
If you purchased your bond from us, email [email protected] explaining the needed change.
How to Get a Money Transmitter License in Colorado
The Colorado DOB licenses all money transmitter companies in the state. To be eligible, you’ll need a net worth of at least $50,000, plus $25,000 per additional location up to $100,000.
First, register your business with the Colorado Secretary of State and the U.S. Department of the Treasury. Then, submit the following materials through NMLS:
- Audited financial statement proving net worth eligibility
- Personal financial statement
- Business registration documents
- Background check and fingerprinting
- Surety bond form
- Anti-money laundering plan
- Business plan and flow of funds structure
- Certificate of Authority
- Agent contract sample and payment instrument sample
- Information Technology Security Policy
- Resume proving industry experience
Once approved, you’ll receive an invoice for the license fee. The DOB will then issue a paper copy of your license.
How Much Does It Cost to Get a Money Transmitter License?
You can expect to pay a minimum of $4,406.25 to get a money transmitter license in Colorado. This includes the following fees:
| License Fee | Amount |
|---|---|
| License Fee (based on issue date) | $6,000 (January–June) or $3,000 (July–December) |
| NMLS Processing Fee | $120 |
| Surety Bond Premium | $1,250+ |
| Fingerprint-Based Background Check Fee | $36.25/control person |
You’ll also need to consider the indirect costs of business registration, accounting fees and hiring a compliance officer. Plus, you’ll need to maintain the required net worth.
*Surety bond premiums vary based on your bond amount and personal credit score.
What Is the Colorado MTMA?
In 2025, the Colorado legislature passed the Money Transmission Modernization Act (MTMA), which updated net worth requirements, clarified who qualifies as a control person and introduced reciprocal licensing for the state.
Under this law, the DOB may waive certain requirements if you’re already licensed in another state. However, you’ll still need to file a separate Colorado money transmitter surety bond.
