Overview of Utah Money Transmitter Bond Requirements

Under the licensing requirements for money transmitters in Utah, a money transmitter bond in a minimum amount of $50,000 must be posted by license applicants.

These licenses are regulated by the state Department of Financial Institutions but applicants must complete the licensing process through the Nationwide Multistate Licensing System & Registry (NMLS).

Why do I need this bond?

This bond guarantees your compliance with the provisions of the Utah Money Transmitter Act and any rules made under it. The bond is intended to compensate the state of Utah for any expenses it incurs in connection with violations committed by a money transmitter.

If a money transmitter violates the Act, causing such expenses and losses, a claim can be filed against their bond. The surety that backs the bond must then investigate the claim to determine the appropriate amount of compensation that it must extend. Depending on the nature of the violation and the losses incurred, compensation can be as high as the full amount of the bond.

If you'd like to know more about how bonds work and why you require one, see our ‘What is a surety bond' guide!

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In the following sections, you can learn more about the cost of your bond, how bond claims occur, and how to apply to get bonded.

If you want to speak to one of our bond experts personally, call us at (866)-450-3412 anytime!

How Much Does It Cost to Get a Utah Money Transmitter Bond?

To get bonded, you pay a bond premium which is equal to a percentage of the full amount of your surety bond.

The amount of the bond required of Utah money transmitters must be at least $50,000.

When you apply to get bonded, the surety will offer you a premium which will be shaped by the following financial factors.

Factors that determine your bond premium

Your personal credit score is the factor that most influences the rate at which you can get bonded. The higher your score is - the lower your rate, and vice versa.

Typically, applicants with an excellent credit score can get bonded at a rate between, roughly, 1% and 3% of the total bond amount.

Those with slightly lower scores can expect to get bonded for as much as 5%, whereas applicants with so-called bad credit are usually offered a rate upward of 5%, and up to 15%.

Along with your credit score, a surety may also want to review your:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Work experience and record

To get a sense of how much your bond might cost, based solely on the credit score, see the table below!

Utah Money Transmitter Bond Cost Based on Credit Score

License type

Bond Amount

Credit Score
Above 700 650-699 600-649 Below 599
Utah money transmitter $50,000 $375-$750 $500-$1,250 $1,250-$2,500 $2,500-$5,000

What Gives Rise to a Bond Claim?

The Utah money transmitter bond is conditioned on licensees complying with the provisions of the Money Transmitter Act.

The law states that the purpose of the bond is to reimburse the state for any expenses it may have due to administrative or judicial proceedings against current or former money transmitters, or sellers, in connection with the issuance or sale of payment instruments in the state.

If a licensee causes such proceedings as a result of violating the Act, a claim can be filed against their bond to reimburse the state. In this case, the surety must investigate the issue to determine the appropriate amount of compensation.

Once the surety resolves a claim by extending compensation, the money transmitter is bound by the bond agreement to repay the surety in full. This condition is standard, because sureties never assume liability for the violations of a bonded party.

To avoid giving rise to claim, it is best for a money transmitter to strictly comply with the conditions of the Money Transmitter Act.

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To get started with your application, click on the banner below and complete the form. We'll shortly contact you with a free quote on your bond, along with more information about completing the bonding process.

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If you want to know more about the bonding requirements for Utah money transmitters or require help with your application, call us at (866)-450-3412!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.