An Arkansas money services bond is one of many requirements set by the Arkansas Securities Department for those parties wishing to offer money transfer services in the state. The statute defines a money service as a "currency exchange", i.e., receipt of revenues from the exchange of money of one government for money of another government, and "money transmission" which is the selling or issuing of payment instruments, stored value, or receiving money or monetary value for transmission. Currently the law does not reference virtual currency and the Arkansas State Bank Department has not provided guidance for the same.
The Arkansas money transfer bond must be issued in the minimum amount of fifty thousand dollars ($50,000) plus ten thousand dollars ($10,000) per location in the state if engaged in money transmission or money services. "The maximum surety bond required is generally $300,000. Each money services bond must allow suit against the bond by any person who has a cause of action under the statute. The surety bond must cover claims for so long as the commissioner specifies however for no less than five years after the licensee ceases to provide money services. The commissioner may increase the amount of a surety bond required to a maximum of $1,000,000 if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria." (Ark. Code Ann. § 23-55-101 et seq.)
Arkansas surety bond leader, Surety One, Inc. specializes in the bonding needs financial institutions, money transmitters and virtual currency professionals. We offer surety bonds and fidelity bonds to financial services operators and traders in all fifty states, Puerto Rico and U.S. Virgin Islands. Although applicant financial condition is a factor in bond underwriting, we have programs to fit EVERY credit condition. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for a live chat for an Arkansas money services surety bond (money transmitter bond) application or to discuss your particular needs.
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