Iowa's Division of Banking works to provide citizens of Iowa safe, sound, and profitable financial and banking services. The Division licenses and regulates these industries, including money services and money transmitter businesses.
"Money services" are industries that transmit money or exchange currency. Money transmitters are a money services business which involves selling or issuing payment instrument, such as a check, draft, money order, traveler's check, stored-value, or other means. They also receive money or monetary value for transmission and receive money for obligors for the purpose of paying the obligor's bills, invoices, or accounts.
Money services businesses must be licensed. Operating without a license is considered to be an aggravated misdemeanor. One aspect of the licensing requirements includes obtaining a security such as a surety bond.
The Division of Banking in Iowa is the obligee that requires a money services and money transmitter businesses to obtain a security. This can be a surety bond, a letter of credit, or other security of $50,000 plus $10,000 per location, with a maximum amount of $300,000. The Superintendent may increase the amount to a maximum $1 million depending on the financial condition of a licensee.
The Superintendent may investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The Superintendent may conduct on-site investigation, and the applicant must pay the expenses.
A surety bond must cover claims for at least five years after the licensee ceases to provide money services in the state. The Superintendent may allow the amount to be reduced or eliminated during this period.
The premium that you pay for an Iowa Money Services or Money Transmitter Surety Bond is dependent on credit and the bond amount required. Our rates start at 1.5% of the bond amount with good credit. Surety bond amounts exceeding $50,000 will require personal and business financial statements for underwriting purposes. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Money services licensees in Iowa must have a net worth of $100,000, plus $10,000 for each authorized delegate.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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