What is an Arizona Money Transmitter Bond?
The Arizona Money Transmitter Bond provides a guarantee that the money being sent out will be handled with utmost care.
In like manner, the company responsible for transmitting it will act ethically and according to authorized guidelines.
Whenever proper transmission of money has not been complied with, the party whose money was mishandled will be compensated through the bond.
Why do you need a Money Transmitter Bond?
As an entrepreneur engaged in the business of funds transfer, it is important that your clients and other entities involved, know that you are conducting your business by Chapter 12 of the Arizona Revenue Statutes and all other regulations relevant to the business of money transmission. This awareness will give your clients and associates peace of mind which can readily be translated into enduring trust and confidence for your business.
More details about Money Transmitter Bond
Before you get a bond, a series of documents will have to be produced and necessary fees to be paid. To become a qualified and accredited money transmitter in Arizona, you must supply this information on the license request:
- Your address and primary business location, the address of every site where you intend to carry out business in Arizona, as well as any branch workplaces, and the name and address of every locality of any endorsed delegate/s;
- Duplicates of the articles of incorporation, a list of every trade name or alias you have used, and other information regarding your corporate status;
- Your financial statement that was properly reviewed by a qualified and self-regulating public accountant.
Arizona money transmission surety bonds stay in force for one year after its acquisition and can be renewed every year for a specific fee. You must have a net worth of at least $100,000 to apply for this bond.
What is the cost of a Money Transmitter Bond?
There are no predetermined amounts for this type of bond. It varies and will greatly depend on you as an applicant and your individual financial strength as demonstrated in your credit score.
In most cases, your cost is a certain percentage of your bond's overall amount which will be determined by the surety company. Besides your financial statements, other factors that your surety firm will consider when calculating your cost would include your industry experience and your asset profile.
Due to the risks involved in this transaction, the actual rate of the money transmitter bond is higher than most surety bonds.
How do I get a Money Transmitter Bond?
Obtaining a bond is not difficult. Once required documents have been submitted and inquiries answered, your surety bond company will conduct a preliminary assessment. Based on the outcomes of the initial appraisal, your money transmitter bond application will either be approved, or you will be requested to present additional documentation to aid the underwriting process.
Call us today! Surety Bond Authority experts will be glad to offer you additional information about the Arizona Money Transmitter Bond and assist you if you require any help.