Connecticut Money Transmitter Bond Overview
- Purpose: To ensure money transmitters comply with state regulations and recordkeeping requirements
- Who Needs It: All money transmission professionals in Connecticut
- Regulating Body: The Connecticut Department of Banking (DOB)
- Bond Amount: $300,000–$1,000,000, based on money transmission volume
- Minimum Price: $3,000, or 1% of the bond amount
In Connecticut, money transmitter professionals need a surety bond for state licensing. Read on to learn all about the bonding process.
What Is a Connecticut Money Transmission Bond?
If you’re applying for a money transmitter license in Connecticut, the Department of Banking (DOB) requires you to file a surety bond.
A Connecticut money transmitter bond protects the state and your clients from harmful business practices. It also guarantees that you’ll keep accurate records.
Who Needs a Money Transmitter Bond?
Any business that provides bill payment or money transmission services to clients in Connecticut must be licensed and bonded with the DOB.
Even if your business is not physically located in the state, you’ll still need this license if you meet any of the following conditions:
- You receive or transmit money from a location or person in Connecticut
- You issue or sell stored value or payment instruments sold in Connecticut
- You operate, market or manage virtual currency kiosks physically located in Connecticut
Federally insured banks, government agencies and similar institutions are exempt from the license requirement.
Note: We do not currently have any surety markets than can underwrite this bond for virtual currency kiosk operators.
Bond Coverage Requirements for Connecticut Money Transmitters
Connecticut money transmitters need a minimum $300,000 surety bond. The Department of Banking will calculate your bond amount based on your average weekly money transmission volume over the past year, ending June 30th.
| Average Weekly Volume | Bond Amount |
|---|---|
| <$300,000 | $300,000 Bond |
| $300,000–$500,000 | $500,000 Bond |
| $500,000+ | $1,000,000 Bond |
If you handle virtual currency, your required bond amount is $1,000,000, regardless of volume. However, we do not currently have any markets that underwrite these bonds for virtual currency businesses.
How Much Do Money Transmission Bonds Cost in Connecticut?
Connecticut money transmitter bond premiums start at $3,000 for $300,000 coverage, or just 1% of the bond amount. When you apply, the surety will run a soft credit check and review your financials to determine exact pricing.
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 Connecticut Money Transmitter Bond Work?
A Connecticut money transmitter bond forms a legal contract between three parties to ensure financial security.
| Bond Party | Description |
|---|---|
| 1) Principal | The money transmitter professional filing the bond |
| 2) Obligee | The Connecticut Department of Banking requiring the bond |
| 3) Surety | The issuing surety provider |
This bond is your financial guarantee to the DOB that you’ll uphold all regulations under the Connecticut Money Transmission Act. This includes properly handling client funds, conducting transmissions honestly, and keeping accurate records.
If you break those regulations, 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 must reimburse the surety.
How Do I Get a Money Transmitter Bond in Connecticut?
Our online portal makes the bonding process fast, easy and secure. This bond requires a quick credit check and financial statements for exact pricing.
Apply now to receive a free 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), which will be in your email records. Your bond can’t be accepted by the DFI until you authorize the surety.
How Do I Renew My Money Transmitter Bond?
Connecticut money transmitter bonds expire annually. We’ll send you reminders by phone and email starting 90 days before the expiration date.
If your money transmission volume changes, you’ll need to contact your surety company to update your bond amount. Otherwise, pay the attached invoice, and we’ll issue a continuation certificate to keep your bond active for another year. Sign and file the certificate with the DOB
Can I Make Changes to My Bond?
Yes, you can often make minor changes, such as name and address, by contacting your surety company. 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 Connecticut
You’ll need to register your business with the Connecticut Secretary of State and the U.S. Department of the Treasury. Then, submit the following materials through NMLS to apply for your money transmitter license:
- Company Form MU1
- Audited financial statement proving the net worth requirement
- Criminal background check and credit report authorizations
- Surety bond (uploaded by surety)
- Formation documents
- AML/BSA policy
- Business plan and flow of funds structure
- Copy of authorized agent contract
- Payment for the $1,875 license fee and $120 processing fee
Once approved, you can view your license in NMLS. If you have any licensing questions, you can contact the Consumer Credit Licensing office at [email protected].
What Are the Net Worth Requirements for Money Transmitters in Connecticut?
The minimum net worth requirement varies based on the money transmission activities you perform.
| Business Activity | Minimum Net Worth |
|---|---|
| Checks, drafts or money orders | $100,000 |
| Money transmission (except for stored value or payment instruments) | $500,000 |
| Stored value, traveler’s checks, electronic payment instruments or virtual currency | $1,000,000 |
You must maintain this net worth for your entire license duration.
