Who requires it
Kentucky Department of Financial Institutions — Money transmission
License & permit · Kentucky
Kentucky Money Transmitter Bond
Kentucky money transmitter applicants and licensees must maintain a surety bond or other security acceptable to the commissioner under KRS 286.11-013. The statutory floor is $500,000. The commissioner may raise the requirement to as much as $5,000,000 based on net worth, transaction volume, or other criteria established by order or rule. Filings typically run electronically through NMLS with the Department of Financial Institutions.
Common bond amount
$500,000–$5,000,000
Statutory minimum $500,000; commissioner may increase to $5,000,000 (KRS 286.11-013).
How you file
File electronically through NMLS, or post other security the commissioner accepts
Renewal
Stays in force while licensed; 30-day cancellation notice; claims can be filed for five years after a violation or after you stop transmitting in Kentucky
Who requires it
Persons engaging in money transmission under KRS Chapter 286.11—receiving money or monetary value to transmit or deliver, or issuing payment instruments or stored value—who must hold a Kentucky money transmitter license from DFI.
How much is required
Section 286.11-013 starts at five hundred thousand dollars. The commissioner may increase the amount to a maximum of five million dollars using financial condition, transaction volume, or other relevant criteria.
How to get and file it
Confirm the required amount with the Department of Financial Institutions or the NMLS Kentucky checklist, then have an authorized surety submit an electronic bond satisfactory to the commissioner through NMLS. Maintain the required security at all times. Provide at least thirty days’ written notice before cancellation. The statute keeps coverage available for claims for at least five years after a violation or after the licensee stops providing money-transmission services in Kentucky, whichever is later, unless the commissioner allows an earlier reduction tied to outstanding payment instruments.
Cost note
Five hundred thousand dollars (or the higher ordered amount) is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Minimum amount
- $500,000
- Maximum ordered amount
- $5,000,000
- Who can claim
- The bond runs to the Commonwealth for claimants against the licensee
- After you stop transmitting
- Claims can be filed for at least five years after a violation or after you exit Kentucky money transmission
Official sources
Related resources
Frequently asked questions
Is $500,000 always enough for a Kentucky money transmitter?
It is the statutory minimum. The Department of Financial Institutions may order a higher amount up to $5,000,000 based on net worth, transaction volume, or other criteria. Confirm the current required amount before filing.
Can I use something other than a surety bond?
KRS 286.11-013 allows a surety bond or other similar security acceptable to the commissioner. Substitute devices must still meet the amount and form requirements in the statute.
Related Kentucky bond guides
Mortgage Lender Bond
$15,000 / $20,000 / $50,000 / $250,000
Kentucky mortgage loan companies, mortgage loan brokers, and mortgage loan originators must keep a bond for the entire license or registration period. KRS 286.8-060 sets floors of $250,000 for mortgage loan companies and $50,000 for mortgage loan brokers. 808 KAR 12:021 adds individual originator amounts of $15,000 or $20,000 based on annual loan volume, using Forms ML-1 through ML-4 filed through NMLS with the Department of Financial Institutions.
Debt Adjuster Bond
$25,000 / $75,000
Kentucky debt adjusters must register with the Attorney General and maintain a $25,000 surety bond—or an Attorney General–approved irrevocable letter of credit—under KRS 380.040. If the adjuster handles consumer debt secured by a residential mortgage or equivalent interest, the bond or letter of credit increases by $50,000. Coverage must remain in place during registration and for two years after the adjuster stops serving debtors.
Motor Vehicle Dealer Bond
Conditional · up to $100,000+
Kentucky does not make every motor vehicle dealer post a fixed statewide surety. KRS 190.030(9) lets the Motor Vehicle Commission require a bond of up to $100,000 when it doubts an applicant’s financial responsibility or compliance. 605 KAR 1:030 adds a concrete asset path for new, used, motorcycle, automotive mobility, and leasing dealers: show at least $50,000 in unencumbered cash or inventory, and if assets sit between $50,000 and $100,000, obtain a commercial bond for the difference to $100,000. Auction dealers may face higher commission-set amounts.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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