Surety Bond: Core Requirement for MSBs pursing MTLs
Surety bonds protect consumers by guaranteeing performance and covering losses resulting from a Money Transmitter’s default or from noncompliance. In 2026, most states require a continuous bond payable to the regulator, of varying amounts from a minimum of $25,000 up to $3,000,000 USD.
Surety bond requirements for finch startups and MSBs vary on a state by state basis, but often follow MTMA guidelines: 100% of average daily money transmission liability in the state, or a minimum required amount in many MTMA states, some examples include:
– Georgia: Minimum $250,000.
– Oregon: $25,000 base + $5,000 per branch/agent, up to $150,000.
– Some states scale to $2 million based on volume.
Surety bonds are obtained from surety bonding companies, generally insurance agents also provide surety bonds, surety bond premiums may range from 1–3% of bond amount, depending on credit of the personal guarantor.
Once your MSB has obtained a surety bond in the state, you will generally upload proof through the NMLS as many states allow electronic bonds, otherwise a certified copy will be physically delivered to the regulator from the surety company. Once you’ve obtained the bond, be sure to maintain coverage continuously for the duration of your money transmitter license as a lapse in coverage can trigger fines, suspension and even revocation.
Why Choose Adytum?
At Adytum we don’t just check the compliance boxes, instead we build sustainable compliance frameworks that scale and enable robust business growth. Our hands-on experience includes managing independent compliance reviews, training teams in best practices, and successfully passing both federal and state examinations.
Ready to elevate your compliance program and be adytum? Drop us a line partner@beadytum.com
