Iowa Money Transmitter Bond Overview
- Purpose: To ensure Iowa money transmitters uphold all state regulations
- Who Needs It: Anyone in the business of currency exchange or money transmission
- Regulating Body: The Iowa Division of Banking
- Bond Amount: $100,000–$300,000
- Minimum Price: $2,000 or 2%
What Is an Iowa Money Transmitter Bond?
All Iowa money services business licensees need a money transmitter bond, also known as a currency exchanger bond or money services bond.
This type of surety bond is a financial guarantee that money service professionals will follow state and federal laws. It is similar to an insurance policy, however, it protects consumers rather than the money transmission business.
Who Needs a Money Services Bond?
Any person or entity providing money transmission or currency exchange services for clients in Iowa needs a minimum $100,000 money transmitter bond. This covers the following activities:
- Electronic money transmitting
- Issuing money orders, drafts, stored value or traveler’s checks
- Selling money orders, drafts, stored value or traveler’s checks
- Foreign currency dealing or exchanging
Virtual currency (bitcoin) kiosk operators also need a license and bond. However, we do not currently have surety market options for these clients.
How Much Do Money Transmitter Bonds Cost in Iowa?
The base $100,000 bond premium starts at $1,000 for a year of coverage. Your exact rate will typically vary between 2–10% of the total bond amount based on your personal credit score and financials.
Apply now to get your free quote within one business day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Iowa Money Transmitter or Currency Exchanger Bond Work?
A money transmitter or currency exchanger bond joins three parties into a legally and financially-binding contract.
| Bond Party | Description |
|---|---|
| 1. Principal | The money transmitter entity owner(s) |
| 2. Obligee | The Iowa Division of Banking |
| 3. Surety | The issuing surety provider |
As the principal, you are responsible for upholding your obligation to the DOB (the obligee). That means following all licensing rules, regulations and laws.
If you fail to do so, harmed parties can file bond claims, which the surety reimburses. However, you will then need to repay the surety.
How Do I Get a Money Services License Bond in Iowa?
Start the bonding process by submitting a quote request form with SuretyBonds.com. We’ll provide a quote within one business day or less.
Review your premium invoice and checkout online at your convenience. Shortly after your purchase, we’ll upload the bond to NMLS and you will be officially bonded.
How Fast Can I Get My Bond?
You can get your Iowa money transmitter bond as quickly as the same day with SuretyBonds.com. If you have excellent credit, you may be able to get bonded within a few hours on business days.
How Do I File My Bond?
We’ll upload the electronic surety bond directly to NMLS on your behalf. After purchasing the bond, there is no further action required on your part.
How Do I Renew My Money Transmitter Bond?
Your bond will expire every year. If you extend your license term, you’ll need to extend your bond term as well.
To renew, you can often just pay the premium for the next year of coverage and keep your existing bond active. However, be sure to notify your surety provider if your bond coverage needs to be changed.
How to Get a Money Transmitter License in Iowa
You’ll apply through the Nationwide Mortgage Licensing System (NMLS) to get an Iowa money services license. To complete your online application, follow these steps:
- Provide audited financial statements meeting net worth requirements
- Purchase a surety bond in the proper amount
- Complete the MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- Upload your Certificate of Authority and business formation documents
- Submit a business plan, management chart and organizational chart
- Submit application and pay fees
Use the NMLS Licensing Checklists, Requirements and Fees Checklist Compiler for additional detail on the application process.
How Much Does It Cost to Get a Money Services Business License?
You’ll pay at least $1,120 to submit your Iowa money services business license application.
- Application Fee: $1,000
- NMLS Processing Fee: $120
- Initial Authorized Agent Fee: $10/authorized agent
Be sure to budget for other initial expenses, including the surety bond premium, legal fees and the cost to acquire audited financial statements.
