The licensee
The money transmitter, MSB, payment instrument seller, stored value issuer or virtual currency licensee posting the bond.
License & Permit Surety Bonds
Money transmitter surety bonds, issued in every licensing jurisdiction.
National surety leader Surety One, Inc., as managing general agent for admitted surety carriers, underwrites and places money transmitter, money services business, payment instrument seller, stored value issuer and virtual currency licensee surety bonds in all forty-nine licensing states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam — including MTMA-conforming electronic surety bonds filed directly through NMLS.
§ 01 — Overview
01 / OverviewWhat a money transmitter bond actually is
A money transmitter surety bond is a license bond required by state financial regulators — most often a banking commissioner, department of financial institutions or similarly-titled body — as a condition of obtaining and maintaining a money transmitter license. The bond is a three-party guarantee: the licensee (principal) promises faithful compliance with the state's money transmission act, an admitted surety company — represented by Surety One, Inc. as managing general agent — guarantees that promise to the state (obligee) up to the penal sum, and harmed consumers or the state itself may recover against the bond if the licensee violates the law, misappropriates customer funds, fails to transmit funds as instructed, or otherwise injures the public.
Money transmission is broadly defined and now reaches well beyond traditional wire transfer companies. Most jurisdictions require licensure — and a bond — from any business that receives money for transmission, sells or issues payment instruments or stored value, or engages in virtual currency business activity with residents of that state.
The regulator
The state banking department, division of financial institutions or commissioner empowered to license money transmitters.
Insurer
The admitted surety company that issues the bond and guarantees the licensee's faithful performance — represented in placement and underwriting by Surety One, Inc. as managing general agent.
§ 02 — Regulatory landscape
02 / ModernizationThe Money Transmission Modernization Act
The Money Transmission Modernization Act (MTMA) is a model law developed by the Conference of State Bank Supervisors with input from state regulators and industry. Approved by the CSBS Board in 2021, the MTMA standardizes definitions, licensing, prudential standards, permissible investments and surety bond requirements across U.S. states. More than thirty jurisdictions have now enacted the MTMA in whole or in part, and additional states have legislation pending.
30+
U.S. jurisdictions that have adopted the MTMA in whole or in part
$100K
Floor of the model surety bond requirement
$500K
Cap on the model surety bond requirement
100%
Of average daily money transmission liability in the state — the formula
Practical implication · I
The bond is now activity-based, not a flat figure. Penal sum is recalculated against the licensee's average daily money transmission liability in the state for the most recent three-month period.
Practical implication · II
Licensees that maintain a bond of at least $500,000 are generally relieved of the obligation to calculate average daily liability in the state.
Practical implication · III
The MTMA expressly contemplates the NMLS Electronic Surety Bond (ESB) framework. Paper bonds are increasingly being retired in favor of electronic filing.
Practical implication · IV
The MTMA does not mandate a fidelity bond or E&O policy. States that previously imposed those requirements generally repeal them on full adoption of the Act.
§ 03 — Who needs it
03 / ScopeActivities that trigger the bond requirement
State money transmission laws sweep broadly. If your business engages in any of the activities listed below — and does not qualify for an exemption such as the bank, agent-of-the-payee, or payment processor exemptions in the relevant state — a license and surety bond will almost certainly be required.
- Receiving money or monetary value for transmission
- Selling or issuing payment instruments (money orders, drafts, traveler's checks)
- Selling or issuing stored value (open-loop prepaid access)
- Operating a remittance business, domestic or cross-border
- Currency exchange / foreign currency dealing
- Bill payment services
- Virtual currency exchange, transmission or custody
- Stablecoin issuance or redemption
- Payroll processing (in many MTMA jurisdictions)
- Operating as an authorized delegate of a licensee
§ 04 — Underwriting
04 / SubmissionWhat we need from you
Surety bond application review and quoting are free of charge. There is no obligation to purchase. Submission requirements scale with the size of the bond required by the obligee state.
Bonds ≤ $50,000
Streamlined submission
- Completed money transmitter surety bond application
- NMLS company ID, if applicable
Bonds > $50,000
Full submission
- Completed money transmitter surety bond application
- Applicant's current audited or reviewed financial statement
- Personal financial statement(s) of beneficial owners, if requested
- FinCEN MSB registration number
- Evidence of E&O and fidelity coverage, if carried
§ 05 — Jurisdictions
05 / DirectorySelect a state or territory
Click any jurisdiction below to view its specific money transmitter bond requirements, statutory citation, bond form and application materials.
AlabamaAL
AlaskaAK
ArizonaAZ
ArkansasAR
CaliforniaCA
ColoradoCO
ConnecticutCT
DelawareDE
District of ColumbiaDC
FloridaFL
GeorgiaGA
HawaiiHI
IdahoID
IllinoisIL
IndianaIN
IowaIA
KansasKS
KentuckyKY
LouisianaLA
MaineME
MarylandMD
MassachusettsMA
MichiganMI
MinnesotaMN
MississippiMS
MissouriMO
MontanaNot required
NebraskaNE
NevadaNV
New HampshireNH
New JerseyNJ
New MexicoNM
New YorkNY
North CarolinaNC
North DakotaND
OhioOH
OklahomaOK
OregonOR
PennsylvaniaPA
Rhode IslandRI
South CarolinaSC
South DakotaSD
TennesseeTN
TexasTX
UtahUT
VermontVT
VirginiaVA
WashingtonWA
West VirginiaWV
WisconsinWI
WyomingWY
Puerto RicoPR
U.S. Virgin IslandsVI
GuamGU
U.S. territory
Bond not required
Montana does not license or bond money transmitters.
§ 06 — Frequently asked
06 / Q&ACommon questions
What is a money transmitter surety bond?
A license bond required by state financial regulators as a condition of obtaining and maintaining a money transmitter license. The bond guarantees the licensee's faithful compliance with the state's money transmission act and provides a source of recovery for consumers and the state if the licensee violates the law, misappropriates customer funds or fails to transmit funds as instructed.
Which jurisdictions require a money transmitter to be bonded?
Forty-nine U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam require a money transmitter surety bond as a condition of licensure. Montana is the only U.S. state that does not license or bond money transmitters.
How much does a money transmitter surety bond cost?
Premium for a money transmitter surety bond is typically a small percentage of the penal sum and is determined by the applicant's credit profile, business experience, financial statements and the size of the bond required. Well-qualified applicants frequently obtain rates beginning at approximately one percent of the bond amount. Surety One, Inc. provides free application review and quoting with no obligation to purchase.
What is the Money Transmission Modernization Act?
The Money Transmission Modernization Act (MTMA) is a model law developed by the Conference of State Bank Supervisors and industry experts to standardize the licensing, supervision and prudential regulation of money transmitters across U.S. states. The MTMA establishes uniform definitions, net worth requirements, permissible investment standards and a formulaic surety bond requirement equal to the greater of $100,000 or 100% of the licensee's average daily money transmission liability in the state, capped at $500,000.
Does the MTMA require a fidelity bond?
No. The model Money Transmission Modernization Act requires a surety bond but does not require licensees to carry a fidelity bond or errors and omissions insurance as a condition of licensure. Some states have historically required additional coverages, but full adoption of the MTMA generally repeals those legacy requirements.
Can a money transmitter bond be filed electronically?
Yes. The Nationwide Multistate Licensing System (NMLS) supports Electronic Surety Bonds (ESB) for money transmitter licensees in most jurisdictions. The MTMA expressly encourages states to use the ESB framework, and an increasing number of state regulators now require electronic filing. Surety One, Inc. issues and files electronic surety bonds directly through NMLS.
Does Surety One write virtual currency licensee bonds?
Yes. Surety One, Inc. underwrites surety bonds for virtual currency business activity in jurisdictions where the conduct is regulated under the state money transmission act or under a stand-alone virtual currency licensing regime, including New York's BitLicense program.
Is Surety One an admitted surety carrier?
No. Surety One, Inc. is a managing general agency and surety bond underwriter representing admitted and non-admitted surety carriers. Surety One underwrites, places and issues bonds on carrier paper pursuant to delegated underwriting authority.
§ 07 — Get bonded
Speak with a money transmitter bond underwriter today.
Bond application review and quotes are free. Submit a single application and we will quote any state — or, for multi-state licensees, an aggregate program — within one business day.
