Arkansas money transmitter surety bond rules will see some major changes starting from May 2019. Surety bonds are essential for any money transmitter when getting licensed in any US state.
The new Senate bill, which was adopted in February, is now called Act 111. It introduces changes to the Uniform Money Services Act. These changes will include new methods of calculating the surety bond amounts and other related factors.
A money transmitter license bond is meant to ensure that a licensee will follow all the regulations and rules and minimize any problems. The Arkansas money transmitter surety bond changes will come into effect from May and any firms or companies that violate them will be liable to fines etc.
Read more: Changes to Uniform Money Services Act Coming in May
According to the Arizona State Legislature, each money transmitter license should be accompanied by a money transmitter bond.
The requirements for a money transmitter bond in Arizona differs according to the number of delegates and locations. In lieu of bond, cash or cash alternatives can be used.
- $25,000 bond – Money transmitters with 5 or less delegates and locations.
- $100,000 bond – Money transmitters with 6 to 20 delegates and locations.
- $5,000 additional for each delegate or location for money transmitters with 21 to 200 delegates and locations. The amount should not exceed $250,000.
- $5,000 additional for each delegate or location for money transmitters with more than 201 delegates or locations. The amount should not exceed $500,000.
Read more about bond requirements here.
A money transmitter bond is a part of money transmitting licensing requirements. Also known as a surety bond or a money services business bond,it is a type of guarantee that you, a money transmitter, will offer honest and professional money transfer services. The bond also guarantees that you will comply with the state rules and regulations and will not misuse the funds.
This bond serves as an extra security layer for your customers. In case you fail to honor your promise of accurate and reliable funds transfer, this bond will compensate and reimburse the affected party.
A bond is a three party agreement, which includes:
- Principal: The money transmitter
- Obligee: The state which requires the bond
- Surety: The company issuing the bond
To learn more about money transmitter licensing requirements, click here.