Arkansas Money Transmitter License Surety Bonds
The Arkansas Securities Department provides consumer protection and education related to the securities and financial markets in the state. The Department reviews applications from industries and works to prevent issues before they occur, and assists the public with complaints, investigates violations of statutes and rules, and performs examinations of registrants.
One of the industries regulated by the Securities Department is Money Transmitters, who are required to carry a surety bond as a guarantee of honest transactions.
Surety Bond and Obligee
The Arkansas Securities Department is the obligee requiring the surety bond. The minimum bond amount is $10,000. The amount is based on the previous year's dollar volume for money transmissions, payment instruments, and stored value. The maximum bond amount is $300,000.
Surety bonds must cover claims for at least five years after a licensee ceases to provide money services in Arkansas. The commissioner may permit the bond amount to be reduced or eliminated before that time.
Money Transmitter License Requirements
The Arkansas Uniform Money Services Act requires a person or business to have a license before engaging in money services activity in the state.
A money transmitter license allows the following activities:
- Electronic Money Transmitting
- Issuing and selling traveler's checks
- Issuing and selling money orders
- Bill paying
- Issuing and/or selling drafts
- Issuing and selling prepaid access/stored value
- Foreign currency dealing or exchanging
After an application is filed, the commissioner will investigate the applicant's finances, experience and character.
License and Application Fees:
- AR License/Registration Fee: $375
- AR Application Fee: $1,500
- Annual renewal fee of $375
Application Requirements:
- Apply for a license through the National Mortgage Licensing System (NMLS) website and complete the Submission of Company Form (MU1) - the application for the license/registration
- Financial Statements
- Authorized Agents (Delegates) Locations
- Other Trade Name
- Resident/Registered Agent
- Primary Contact Employees
- Non-Primary Contact Employees
- Approvals and Designation
- Bank Account Information
- Disclosure Questions
- Qualifying Individual
- Control Person (MU2) Attestation
- Credit Report
- AML/MSA Policy (Anti-Money Laundering / Bank Secrecy Act)
- Business Plan
- Certificate of Authority/Good Standing Certificate
- Certificate of Resolution
- Company Staffing and Internal Policies
- Document Samples
- Flow of Funds Structure
- Formation Documents
- Management Chart
- Organizational Chart/Description
- Permissible Investments
- Surety Bond with a minimum of $10,000 and a maximum bond amount of $300,000.
How Much Does This Bond Cost?
The premium that you pay for an Arkansas Money Transmitter Surety Bond is dependent on credit and the bond amount required. Our rates start at 1.5% of the bond amount with good credit. Personal and business financial statements will be required for the underwriting process. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Did You Know?
Licensees must have a net worth of $10,000 for every $1 million of the total previous year's dollar volume.
Related Links:
Arkansas NMLS Money Transmitter License InformationArkansas Money Transmitter License Information
More Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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