Iowa Money Transmitter Bond

The Iowa Money Transmitter Bond amount is tiered based on your business's average daily money transmission liability in Iowa. The minimum bond amount is $100,000. The bond must equal the greater of $100,000 or 100% of your average daily money transmission liability (calculated over the most recent three-month period), with a maximum bond amount of $500,000. The bond amount is calculated according to Iowa Code §533C.802.

You need an Iowa Money Transmitter Bond if you operate a money services business in Iowa that: (1) sells payment instruments, (2) receives money or monetary value for transmission within the US or internationally, or (3) receives money for paying obligors' bills, invoices, or accounts. This includes businesses like Western Union, MoneyGram, cryptocurrency exchanges, international wire transfer services, bill payment companies, and mobile payment apps offering peer-to-peer transfers. The bond is required by the Iowa Division of Banking as part of your money transmitter license application through the NMLS system.

The Iowa Money Transmitter Bond must be filed electronically through the Nationwide Multistate Licensing System (NMLS) using the Electronic Surety Bond (ESB) feature. You cannot file paper bonds or alternative forms. Your surety company will file the bond directly through NMLS on your behalf as part of your license application. The bond must remain active and in good standing for your license to remain valid, and it must be renewed annually by December 31.