Arkansas Money Transmitter Bond Overview
- Purpose: To ensure money service businesses are financially responsible and protect clients from fraud
- Who Needs It: All licensed money transmitters in Arkansas
- Regulating Body: The Arkansas Securities Department
- Bond Amount: $100,000–$500,000 based on average daily money transmission liability
- Minimum Price: $1,000 or 1%
What Is an Arkansas Money Transmitter Bond?
Arkansas money transmitter bonds ensure money transmitters conduct business according to the Money Services Act. These surety bonds protect money transmitter clients from fraud and are required to become licensed.
Who Needs a Money Transmitter Bond?
The Arkansas Securities Department requires all money transmitters to have a surety bond.
Arkansas defines money transmitters as any individual or business that completes the following activities:
- Selling payment instruments, stored value, prepaid access, traveler’s checks and/or money orders
- Issuing payment instruments, stored value, prepaid access, traveler’s checks and/or money orders
- Bill paying
- Foreign currency dealing/exchanging
- Payroll processing services
- Electronic money transmitting
- Currency exchange activity
Note: We do not currently have any surety markets that issue these bonds for cryptocurrency ATM operators.
Bond Coverage Requirements for Arkansas Money Transmitters
Arkansas money transmitters need a minimum $100,000 surety bond. The bond amount depends on the licensee’s average daily money transmission liability.
If your average daily money transmission liability from the past 3 months is greater than $100,000, you’ll need a bond equal to that average value. For example, if you average at $250,000 of daily transmission you will need a $250,000 surety bond.
*Note: if your tangible net worth is greater than 10 percent of total assets, you’ll just need a $100,000 surety bond.
How Much Do Money Transmitter Bonds Cost in Arkansas?
Arkansas money transmitter bonds vary in price based on bond amount, credit score and sometimes other financial factors.
With a great credit score, you can get a premium as low as $750. Get your free, personalized quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Arkansas Money Transmitter Bond Work?
When you purchase a money transmitter bond, you enter a three-party legal agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | The licensed money transmitter |
| 2. Obligee | The Arkansas Securities Department |
| 3. Surety | The issuing surety provider |
If the principal violates the Arkansas Money Services Act and breaks contract terms, a claim can be filed on the bond. The surety will pay valid claims and the principal is responsible for reimbursing the surety.
How Do I Get a Money Transmitter Bond in Arkansas?
To get your Arkansas money transmitter bond, complete the following quick steps:
- Confirm your required bond amount
- Apply for a quote online
- Receive your quote within one business day or less
- Checkout through our secure payment portal
- Authorize the surety issuer in NMLS
How Do I File My Bond?
The surety will upload your bond to NMLS for you, making filing your money transmitter bond easy. However, you must authorize the surety bond issuer in the system by completing the following steps:
- Sign in to your NMLS account
- Navigate the Home screen and click the Tasks tab
- Select Surety Bonds
- Click Authorized Surety Entities
- Select Add Surety and search for your surety with their surety identifier (NAIC/NPN) or entity name
- Select Grant Authority
After purchasing your bond, you’ll likely receive an instructional email from SuretyBonds.com on these actions. For more information, read Granting Authority to Your Surety Bond Issuer.
How Do I Renew My Money Transmitter Bond?
Arkansas money transmitter licenses expire on December 31st every year. You’ll also need to renew your bond — which expires annually — if you wish to maintain your license.
When you need to renew, a SuretyBonds.com representative will contact you within 90 days of the expiration date. If you have any questions, contact our customer care team by calling 1-800-308-4358.
How Long Do I Need My Money Transmitter Bond?
Money transmitter bonds must remain in effect until cancellation which is only allowed after 60 days’ written notice to the commissioner.
You must maintain an active bond for at least 5 years after you cease money transmission operations in the state.
The commissioner may reduce this requirement, but be sure to check with the Arkansas Securities Department to be sure you no longer need your money transmitter bond.
How Do I Update My Bond Information?
If you need to update basic information on your bond form, a SuretyBonds.com representative can often issue a bond rider for you. Just email what needs to be updated to [email protected] and a representative will assist you with next steps.
How to Get a Money Transmission License in Arkansas
Arkansas money transmission licensing is managed through the Nationwide Multistate Licensing System (NMLS). You must provide the following materials in NMLS to apply for your license:
- Completed MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- Audited financial statements from within 90 days of your fiscal year end
- Surety bond in the proper amount
- Completed Uniform Authorized Agent Reporting (UAAR) with kiosk locations and agents listed
Use the NMLS Licensing Checklists, Requirements, and Fees resource for more detailed information on the license process.
How Much Does It Cost To Get An Arkansas Money Transmitter License?
When applying for your money transmitter license, you’ll pay $2,370 in fees — not including bonding costs. See the chart below for a cost break-down.
| Fee Type | Cost Amount |
|---|---|
| Application Fee | $1,500 |
| License Fee | $750 |
| NMLS Processing Fee | $120 |
| Surety Bond Premium* | $1,000+ |
*Surety bond premiums vary based on underwriting and factors like credit score.
