New Act, New Rules
Starting Aug. 1, 2017, surety bond amounts for Alabama Money Transmitters have increased from $50,000 to $100,000.
This is a result of Alabama House Bill 215, which replaces the Sale of Checks Act from 1961 with the Alabama Monetary Transmission Act.
Money transmission businesses are regulated by the Alabama Securities Commission. Business owners must obtain a license from the Commission and obtain a security, such as a surety bond. A Letter of Credit or other security may be used in place of a bond.
The minimum bond amount is $100,000, and the Commission may require some bond amounts to be higher, based on the Transmitter’s financial situation. The maximum bond amount may not exceed $5 million.
The surety bond guarantees faithful performance of the licensee. Money Transmitters are also responsible for reported claims for five years after their license ceases.
SuretyGroup.com helps Alabama Money Transmitters get bonded. We offer free, no-obligation quotes, low rates and fast service. Give our Surety Bond Specialists a call at 844-432-6637, or apply online at SuretyGroup.com.
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