Indiana Money Transmitter Bond

Claims can be filed when a money transmitter fails to comply with the Indiana Money Transmitter Act. Common triggers include: failure to properly account for consumer funds, not promptly paying funds owed to consumers, mishandling money transmission activities, inadequate recordkeeping, or other violations of Indiana Code Title 28, Chapter 8-4.1. Aggrieved consumers can file claims with the surety company up to the bond's penal sum. The surety investigates and pays valid claims, then seeks reimbursement from the money transmitter.

Any business engaged in money transmission activities in Indiana must obtain this bond. This includes companies that receive money for transmission, issue payment instruments, provide stored value services, or operate as payment processors. Examples include fintech companies, cryptocurrency exchanges, money transfer operators like Western Union or MoneyGram, and payment app providers. The bond must be filed through the Nationwide Multistate Licensing System (NMLS) and maintained continuously throughout the license term.

The bond amount is the greater of $300,000 or your company's average daily money transmission liability in Indiana for the most recently completed calendar quarter, with a maximum cap of $500,000. Licensees at the $500,000 maximum are exempt from further quarterly liability calculations. This requirement is set under Indiana Code § 28-8-4.1-1002 as part of the Indiana Money Transmission Modernization Act effective January 1, 2024.