Money Transmitter Bond

A money transmitter bond may be required in order for a money transmitter to operate in certain states. The bond amount required varies in each state, however, the basis of the bond is the same. You must obtain the required bond at the required amount from a surety insurance company, as a prerequisite to legally conduct business.

Colonial Surety is authorized by the Nationwide Multistate Licensing System & Registry (NMLS) to write electronic money transmitter bonds . If you are not registered with the NMLS, please visit the NMLS website.

Cryptocurrency Money Transmitters – we got you! Colonial offers money transmitter bonds to include those who transmit currency, such as crypto, in all states that require the bond.

A money transmitter bond is required in many states as a prerequisite to become a licensed money transmitter. Should the state required teh bonds, one cannot sell or issue payment instruments, engage in the business of receiving money for transmission or transmitting money, engage in the business of exchanging payment instruments or money into any form of money or payment instrument, or engage in the business of receiving money for an obligor for the purpose of paying that obligor’s bills, invoices, or accounts without first obtaining a money transmitter’s license.

The bond is conditioned on the faithful compliance of the licensee, including its directors, officers, authorized delegates, and employers, with the applicable state. The bond is payable to anyone injured by the wrongful act, default, fraud, or misrepresentation of the licensee, his authorized delegates or his employees, or to the state for the benefit of the person injured.
The amount of the surety bond required varies from state to state. To find out the amount required by the state you applying to operate in, please visit the NMLS website.
Colonial offers the direct and digital way to obtain a money transmitter bond. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. We will then file your application on the NLMS website and you will be bonded within a few days. Our part is done in minutes.
You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Colonial offers our lowest possible rate. Premium is based on the amount of the bond required by the applicable government agency.
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to obtain a money transmitter bond when you deal directly with a quality insurance company licensed to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best, and has been incorporated since 1930. We are NMLS approved, Treasury listed, and licensed and admitted in all U.S. states and territories.

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