Utah Money Transmitter Bond Overview
- Purpose: To protect money transmission clients from fraud and ensure financial responsibility
- Who Needs It: All licensed money transmitters in Utah
- Regulating Body: The Utah Department of Financial Institutions
- Bond Amount: $50,000
- Minimum Price: $1,000
What Is a Utah Money Transmitter Bond?
Utah money transmitter bonds ensure that individuals and businesses who receive money for sales, issuance, and transmission of payments conduct business in accordance with the Money Transmission Act.
This surety bond provides proof of financial responsibility and protects clients from fraud by money transmission service providers.
Who Needs a Money Transmitter Bond?
The Utah Department of Financial Institutions requires all licensed money transmitters to purchase a $50,000 surety bond.
Utah defines a money transmitter as any business or individual who provides the following services:
- Electronic money transmitting
- Issuing drafts, money orders, prepaid access, stored value and/or traveler’s checks
- Selling drafts, money orders, prepaid access, stored value and/or traveler’s checks
Some entities such as government agencies and depository institutions are exempt from licensing. You may also be exempt if you sell or issue the following:
- Credit card vouchers
- Letters of credits
- Gift certificates or similar instruments
Note: We do not currently have any surety markets that issue these bonds for cryptocurrency ATM operators.
How Much Do Money Transmitter Bonds Cost in Utah?
Utah money transmitter bonds vary in cost based on bond coverage amount, credit score and sometimes other financial factors.
Applicants with strong credit often qualify for a 2% premium. Get your personalized quote today starting at $1,000!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Utah Money Transmitter Bond Work?
When you purchase a Utah money transmitter bond, you enter a legal agreement between three parties.
| Bond Party | Description |
|---|---|
| 1. Principal | The licensed money transmitter |
| 2. Obligee | The Utah Department of Financial Institutions |
| 3. Surety | The issuing surety provider |
If the principal breaks contract terms, a claim can be filed and the surety will pay damages to harmed parties. After valid claims are made, the principal must reimburse the surety.
How Do I Get a Money Transmitter Bond in Utah?
You can get your Utah money transmitter by following these simple steps:
- Verify your required bond amount
- Complete the quote request form on this page
- Receive your personalized quote within one business day
- Checkout online at your convenience
Please note that you may also be required to submit business and personal financial statements to complete your application.
How Do I File My Bond?
After purchasing your money transmitter bond, the surety company will upload your electronic bond form directly to the NMLS under your name. All you need to do is authorize the surety.
You'll receive a detailed email from SuretyBonds.com walking you through the authorization and filing process. To confirm your bond and surety, complete the following steps:
- Log in to your NMLS account
- Click Surety Bonds found in the Task tab of the Home screen
- Select Authorized Surety Entities and add a surety
- Enter the surety identifier (NAIC/NPN)/surety entity name to search for your surety
- Click Grant Authority to complete the process
You can also read Granting Authority to Your Surety Bond Issuer for more step-by-step instructions.
How Do I Renew My Money Transmitter Bond?
Utah money transmitter bonds expire annually. If you plan to maintain your license, you’ll need to renew your surety bond.
A SuretyBonds.com representative will contact you within 90 days of your bond expiration date with renewal instructions. If you have any questions, contact our customer care team.
Can I Update My Bond Form?
If you need to update basic information on your bond form, email what information needs to be fixed to [email protected].
A SuretyBonds.com representative will issue you a bond rider for simple fixes, or assist with a new bond form if needed.
How to Get a Money Transmitter License in Utah
Utah money transmitter licenses are processed through the Nationwide Multistate Licensing System (NMLS). To complete your application include the following materials:
- Completed MU1 and MU2 forms with all relevant documents attached in the Document Uploads section
- Proof of a minimum $1 million net worth
- Audited financial statements*
- If applicable, a list of UAAR reporting authorized agents (delegates) and locations
- A $50,000 surety bond
*Note:Note: Upload financial statements separately in the Financial Statement sub-menu, under the Filing tab. For more detailed instructions read the NMLS guide to Submitting Your Initial Financial Statement.
For more information on what to include in NMLS, refer to the Licensing Checklists, Requirements, and Fees page.
How Much Does It Cost to Get a Utah Money Transmitter License?
You can expect to pay $420 in fees for your money transmitter license. These fees do not include additional costs for the surety bond, credit reports or any applicable background checks.
- License Registration Fee: $300
- NMLS Processing Fee: $120
- Surety Bond Premium: $1,000+*
*Surety bond premiums vary based on credit score.
How Do I Renew My Utah Money Transmitter License?
Utah money transmitter licenses expire on December 31st each year. You need to provide at least the following in NMLS to renew your license:
- Audited unconsolidated annual financial statement
- Certificate of Authority
- Updated business plan if applicable
- List of locations and authorized agents within the state if applicable
- Renewed $50,000 surety bond
- $200 renewal fee
- $120 processing fee
Double check with the Utah Department of Financial Institutions and NMLS for more renewal requirements.
