Money transmitter bond cost
The Iowa Division of Banking requires money transmission professionals to post surety bonds to legally work within the state. Before beginning the bonding process, applicants should verify their required bond amount with the state in which they choose to do business. This bond must have $50,000 minimum coverage.
This specific bond type is subject to underwriting, meaning the amount you’ll pay depends on a review of your personal credit report as well as your required bond amount. Don’t worry about bad credit affecting your chance of posting a bond. The experts at Surety Bonds make the bonding process fast and easy for all applicants.
Why this bond
Iowa money transmitter surety bonds guarantee that principals (money transmission professionals) conduct business in compliance with the Uniform Money Services Act (Iowa Code Chapter 533C) and all other laws applicable to the business of money transmission. If fraudulent activity occurs as a result of malpractice conducted by the principal, consumers will not face any financial harm. Acts of malpractice and causes for license suspension and revocation include:
- The licensee violates Chapter 533C of the Iowa Code or a rule adopted or an order issued under this chapter
- The licensee does not cooperate with an examination or investigation by the superintendent of the Iowa Division of Banking
- The licensee engages in fraud, intentional misrepresentation or gross negligence
Money transmitter bond details
Iowa money transmitter licenses remain in effect for one year and can be renewed with a $500 annual fee. The applicant must have a minimum net worth of $100,000 to apply for this license.
Become a money transmitter in Iowa
To become a licensed money transmitter in Iowa, applicants must provide the following information on the license application:
- The legal name of the applicant and its residential and business addresses
- A description of any money services previously provided by the applicant and the money services that the applicant seeks to provide in Iowa
- A list of the applicant’s proposed authorized delegates and the locations in Iowa where the applicant and its authorized delegates propose to engage in money transmission or provide other money services
In addition, applicants must submit a nonrefundable $1,000 application/investigation fee.
Upon the filing of the application, a mandatory investigation will be conducted to determine if all required criteria are met by the applicant.Take the first step toward becoming licensed in Iowa by purchasing the surety bond you need quickly, easily and accurately!
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