The Full Colorado Money Transmitter License Guide [2020]

Published: Apr 27, 2020
colorado money transmitter license

 

Do you want to launch a money transmission business in Colorado? In case you wish to explore this new endeavor, you need to obtain a Colorado money transmitter license. 

The licensing authority in the state is the Colorado Department of Regulatory Agencies. It sets the requirements that applicants have to fulfill in order to start operations in the field of money transmission. This is how state authorities ensure the high standards in the industry are upkept. 

In this guide, you can discover the main steps you need to take in order to start your business successfully. 

Meet the Colorado Money Transmitter License Requirements

The activities of money transmitters in the state are regulated in the Colorado Revised Statutes, Title 11, Article 110, known as the Colorado Money Transmitters Act. As already noted, the rules are enforced by the Division of Banking at the state Department of Regulatory Agencies. You can get acquainted with the exact criteria in the sections below. 

Business Documents 

The first step that you have to make is to register your business entity with the Colorado Secretary of State. Then you have to present the formation documents with your application. 

You need to obtain the following documents as well:

  • Trade name (if applicable) 
  • List of responsible individuals which includes all executive officers, managers, directors, partners, key shareholders, and/or owners 
  • Interagency Biographical and Financial Report and completed fingerprint card for all responsible individuals
  • Applicant Questionnaire
  • Business plan 
  • Organizational chart
  • History of operations
  • Experience in the business of selling or issuing exchange
  • Sample agent contract and a sample form of payment instrument 
  • List of clearing banks on which the payment instruments will be payable
  • Registration with the Department of Treasury as a Money Service Business
  • Bank Secrecy Act and USA Patriot Act Anti-Money Laundering Compliance Program (BSA/AML Compliance Program).

If you want to work with cryptocurrencies, you may or may not have to obtain a license as well. You can get acquainted with the Division’s Interim Regulatory Guidance on the topic. 

Provide a Surety Bond 

One of the indispensable criteria that you have to satisfy to get licensed is to post a Colorado money transmitter bond. It guarantees your compliance with all relevant laws and regulations. 

The minimum bond amount is $250,000. Your exact amount should be equal to the amount of your outstanding payment instruments in Colorado. However, if you don’t meet the state’s permissible investment requirements, the bond amount is $1 million

To get bonded, you have to pay a small percentage of the required amount. It depends on your personal and business finances. The stronger they are, the lower your bond cost will be. If they are in good shape, you can expect rates between 0.5% and 5%.

Want to see the exact price of your Colorado money transmitter bond? Fill in the short form below! 

Get a FREE Bond Quote Today! Shopper Approved Ratings
No obligation | It Takes 2 minutes
Powered by

Financial Statements

All applicants have to provide their audited financial statement for the most period period, as well as for the last 2 years. 

Complete the Colorado Money Transmitter License Application

colorado money transmitter licenseWhen you have obtained the necessary paperwork, it’s time to fill in the application form

Then you have to mail it together with all documents to: 

Colorado Division of Banking 

1560 Broadway # 975 

Denver, CO 80202, United States

License and Registration Fees

The applicable license fee that you have to cover is $7,500 if you apply between January 1st and June 30th. It’s $3,750 if you apply between July 1st and December 31st. 

 

Have further questions about getting your Colorado money transmitter license and bonding? Don’t hesitate to contact us at 877.514.5146.

The following two tabs change content below.
John Williams

John Williams

John Williams is currently the Director of Sales for Lance Surety. Since joining the company in 2011, he has served in various roles throughout the organization, working his way up to now managing our team of licensed agents. As a licensed property & casualty agent, John has become extremely knowledgeable in all facets of the surety industry, including commercial, court and contract bonds. Under his leadership, John’s team has helped thousands of businesses throughout the country meet their license and bonding requirements.