Alaska Money Transmitter Bond Overview
- Purpose: To ensure money transmission businesses uphold state laws and submit honest financial records
- Who Needs It: All money transmitter licensees in Alaska
- Regulating Body: The Alaska DCCED, Division of Banking and Securities
- Bond Amount: $25,000 plus $15,000 per location
- Minimum Price: $250 or 1% of the bond amount
What Is an Alaska Money Transmitter Bond?
An Alaska money transmitter bond protects the state and consumers from harmful business practices and money transfer fraud. The Division of Banking and Securities requires the bond as part of the licensing process as proof of financial security.
Under the $25,000 surety bond, any party affected by improper money transmission conduct can submit a claim to recover damages.
Who Needs a Money Transmitter Bond?
Under state law, any person or business being licensed as a money transmitter needs a surety bond. Alaska defines “money transmission” as any of the following activities:
- Issuing drafts, traveler’s checks, money orders, or prepaid access/stored value
- Selling money orders, traveler’s checks, drafts, or prepaid access/stored value
- Electronic money transmissions and other money services
- Bill paying
- Foreign currency dealing or exchanging
- Cryptocurrency kiosk operations, custodial services, dealing or exchanging
Note: Virtual currency applicants need a $500,000 bond due to greater risk. However, we do not currently have any surety markets that can underwrite these bonds for cryptocurrency businesses.
Bond Coverage Requirements for Alaska Money Transmitters
All Alaska money transmitters need a $25,000 surety bond, plus $5,000 per additional location up to a $150,000 maximum. See the table below for bond coverage examples.
| Number of Locations | Required Bond Coverage |
|---|---|
| 1 Money Transmission Location | $25,000 |
| 2 Money Transmission Location | $30,000 |
| 5 Money Transmission Location | $45,000 |
How Much Do Money Transmitter Bonds Cost in Alaska?
The cost of a $25,000 Alaska money transmitter bond starts at $250. Your exact premium price will vary based on the credit score of all applicants and the bond amount.
Most qualified applicants pay around 1% to 4% of the coverage amount. Apply for your free, personalized quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Alaska Money Transmitter Bond Work?
This type of surety bond creates a legal contract between three parties: the principal, the obligee and the surety.
| Bond Party | Description |
|---|---|
| 1) Principal | The money transmission business owner(s) |
| 2) Obligee | The Alaska DCCED, Division of Banking and Securities |
| 3) Surety | The issuing surety provider |
As the principal, being bonded shows that you are financially secure and will be responsible if your business becomes liable for claims.
If the state or clients file claims for financial damages, the surety will reimburse them, then you must repay the surety.
How Do I Get a Money Transmitter Bond in Alaska?
You can get your bond as quickly as same-day with SuretyBonds.com. Complete these simple steps:
- Apply for a quote online
- Provide any information and signatures when prompted
- Purchase the bond online
- Authorize the surety in NMLS
Once you complete these steps, you will be officially bonded as a money transmitter in Alaska.
How Fast Can I Get My Bond?
When you submit a money transmitter bond quote application, you’ll receive a response within one business day or less.
If you have strong financials and complete all fields of the application, we can help you finalize your purchase as quickly as the same day.
How Do I File My Bond?
After your purchase the bond, the surety will upload the e-file to NMLS on your behalf. Please go to your “Tasks” tab in NMLS then “Surety Bonds” to authorize the surety. Once you grant authority, you will be officially bonded.
We’ll provide an email with these instructions as well.
How Do I Renew My Money Transmitter Bond?
Alaska money transmitter bonds expire annually. We’ll send you reminders and a renewal invoice starting 90 days before the expiration date.
If your number of locations changes, you’ll need to contact your surety company to update the bond amount. Otherwise, simply pay the renewal invoice to extend your bond term for another year.
How to Get a Money Transmitter License in Alaska
The Alaska Division of Banking and Securities manages money transmitter licensing through the NMLS. To apply, create an NMLS account and upload all information, including your surety bond authorization.
Follow the NMLS checklist (linked in More Resources below) to ensure you have all materials saved with the correct document names and information. Incomplete applications will result in delayed processing times or potential rejection.
How Much Does It Cost to Get Licensed?
In total, you’ll pay at least $3,385 in fees to get your Alaska money transmitter license.
- $1,000 license fee plus $200 per additional physical location or $1,000 per additional online location
- $2,000 application fee plus $200 per additional location
- $120 NMLS processing fee
- $15 credit check fee per control person
- $250 minimum surety bond premium
Your exact cost will depend on the number of control persons and locations.
