Arkansas legislators revised a number of requirements for money transmitters through Senate Bill 187. This includes the bond amount that will cover claims made against the bond.
Aside from the money transmitter bond amount, the following are a few of the other changes made in the Uniform Money Services Act:
- The application procedures for money transmission licenses
- The financial standards for licensees
- Statutes that pertain to currency exchange
- Permissible investment of the licensee
New Arkansas Money Transmitters Bond Amount
Prior to the enactment of Senate Bill 187’s on February 13, 2019, the bond amount for money transmitters is $50,000 plus $10,000 per location.
Under the new law, the money transmitter bond amount should not be less than $10,000, but not more than $300,000.
The bond amount for money transmitters will be based on the following:
- The previous year’s money transmission dollar volume
- The previous year’s payment instrument dollar volume
- The previous year’s stored value dollar volume
The Arkansas Securities Commissioner may set the specific bond amount in some cases. The Arkansas Securities Commissioner may also increase the bond amount to $1,000,000 depending on the financial condition of the licensee. Some of the reasons for a bond amount increase are as follows:
- Reduction of the licensee’s net worth
- Financial losses
- Other relevant criteria
A surety bond is not insurance. It is an extension of credit. The surety or the surety bond provider will serve as the financial guarantor of the money transmitter license applicant.
The money transmitter license applicant (principal) and the surety are both bound to pay the obligee (beneficiary of the bond) if the principal violates any of the relevant provisions of the Uniform Money Services Act and other bonded obligations.
How to Get an Arkansas Money Transmitter Bond
Simply apply for this type of bond HERE.
One of our surety bond specialists will inform you if more documents are needed for the pre-qualification process.
The usual documents that are required for processing surety bonds are financial reports, credit reports, and documents that will show your business performance history.
If all your documents are complete, your bond can be processed within 24 hours. Once the pre-qualification process is done, you will be asked to sign an indemnity agreement.
After that, the money transmitter bond will be issued and sent to you.