Kentucky Money Transmitter Bond Overview
- Purpose: To ensure that money transmitters follow industry and state regulations
- Who Needs It: All non-exempt money transmitters in Kentucky
- Regulating Body: The Kentucky Department of Financial Institutions
- Bond Amount: $500,000
- Minimum Price: $10,000
What Is a Kentucky Money Transmitter Bond?
A Kentucky money transmitter bond is a financial guarantee that money transmitters will adhere to industry laws and regulations.
Money transmitter bonds are similar to insurance, but they protect consumers — rather than the business — by holding companies financially liable for their actions.
Who Needs a Money Transmitter Bond?
In Kentucky, if you perform any of the following activities, you need a $500,000 money transmitter surety bond:
- Transmit money or monetary value to another location
- Deliver money or monetary value to another location
- Instruct funds to be transmitted or delivered
This includes any means of transfer, such as wire, fax, and electronic transfers.
Some groups are exempt, including but not limited to, the following:
- U.S. government agencies, including the Postal Service
- State government agencies and departments
- Financial institutions and subsidiaries
- Exempt service providers
How Much Do Money Transmitter Bonds Cost in Kentucky?
The $500,000 Kentucky money transmitter bond premium starts at 2%, or $10,000. Rates may vary based on your personal credit score and finances.
Apply to receive your free quote within one business day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Kentucky Money Transmitter Bond Work?
This bond holds money transmitters liable by entering them into a legal contract with the DFI and the surety provider.
| Bond Party | Description |
|---|---|
| Principal | The entity filing the bond |
| Obligee | The Kentucky DFI, Non-Depository Division |
| Surety | The issuing surety provider |
Under the bond, you’re responsible for upholding all provisions of the Kentucky Money Transmitters Act of 2026. If you violate the bond terms, you must maintain the bond for at least five years after the date of the violation to cover any potential claims.
How Do I Get a Money Transmitter Bond
It only takes a couple of minutes to apply with SuretyBonds.com and get your Kentucky money transmitter bond. Follow these steps:
- Complete the quote request form on this page
- Receive your personalized quote within one business day
- Checkout online at your convenience
That’s it! We’ll upload the electronic surety bond directly to NMLS on your behalf.
Can I Get Bonded With Bad Credit?
You may still be able to bond your money transmission business with poor credit. However, since these bonds are directly related to finances, poor credit may disqualify you.
Apply now to see if you qualify. Our surety experts will shop the top markets to find the best available rate for you. In some cases, you can provide additional financial documents to be approved with low credit.
How Do I Renew My Money Transmitter Bond?
To renew your bond each year, just pay your renewal premium invoice when prompted. If you work with us, we’ll start notifying you 90 days prior to the expiration date to ensure you don’t have a lapse in coverage.
No additional documentation is needed, unless you need to make a change to the bond.
Can I Make Changes to My Bond?
If minor information has changed for your bond — such as address or name — we can likely issue a bond rider document to amend the original information.
Please email the information you need updated to [email protected] for assistance.
How to Get a Money Transmitter License in Kentucky
The licensing process is done online through the Nationwide Multistate Licensing System (NMLS). You need audited financial statements, proof of a $500,000 net worth and a $500,000 surety bond as financial security in addition to other documentation.
You’ll also pay $1,120 in money transmitter licensing fees.
| License Fee Type | Amount |
|---|---|
| Application Fee | $500 |
| Licensing | $500 |
| NMLS Processing Fee | $120 |
Licenses are valid until December 31 each year. Be sure to renew your license and surety bond annually.
