Iowa Money Transmitter License Overview
Who Controls the Iowa Money Service License
The Iowa Division of Banking issues a Money Service license to entities involved in the business of currency exchange or money transmission. Currency exchange means receipt of compensation from the exchange of money of one government for money of another government. Money Transmission means any of the following: selling payment instruments to one or more persons or issuing payment instruments which are sold to one or more persons; or conducting the business of receiving money or monetary value for transmission; or conducting the business of receiving money for obligors for the purpose of paying obligors’ bills, invoices, or accounts.
Activities Authorized by the Iowa Money Service License
This license authorizes the following activities:
- Electronic money transmitting
- Issuing traveler’s checks
- Selling traveler’s checks
- Issuing money orders
- Selling money orders
- Bill paying
- Issuing and/or selling drafts
- Issuing prepaid access/stored value
- Selling prepaid access/stored value
- Foreign currency dealing or exchanging
Iowa Money Service License Net Worth and Surety Bond
To acquire a Money Service License in Iowa, you need a minimum tangible net worth of $100,000. You shall also be required to submit a surety bond of $300,000 or a premium in the amount of $7,500.
Iowa Money Transmitter License Cost
The PDF below summarizes the costs associated with acquiring a Money Service License in the state of Iowa. The process will take approximately three months.
Steps to Obtain a Money Transmitter License in Iowa
Here’s a step-by-step guide on how to obtain a money transmitter license in Iowa.
- FinCEN Registration
Get your money services business registered with FinCEN
- Iowa Money Transfer Rules & Regulations
Go through the Iowa state laws and regulations pertaining to your business, and make sure that you comply with all of them
- NMLS Account Creation
Go through the NMLS website and create an account
- Collect all documents
Make a list of all the documents required for submitting your money transmitter license application
- NMLS Filing
Start filing your application through NMLS
Pay the fees as part of your license application process
Wait for approval from the regulator
This page was last updated on September 22, 2022.