Arkansas Money Transmitter Bonds
Arkansas Money Transmitter Bond Information
A surety bond must be furnished by Arkansas money transmitters in accordance with the Arkansas Uniform Money Services Act. The surety bond must be in a coverage amount of $50,000 plus $10,000 per additional location and a maximum bond coverage amount required is $300,000. The state of Arkansas Securities Department generally requires a person or business to have a license and a surety bond to engage in money services if the entity receives money or its equivalent value for transmission, sells, issues, or acts as an intermediary for stored value devices, issues or sells prepaid access cards, conducts bill payer services, or engages in informal money transfer as a business for transferring money outside the traditional financial institutions system.
What Does a Money Transmitter Bond Protect Against?
The Arkansas Money Transmitter Bond ensures compliance with the provisions of Uniform Money Services Act [Ark. Code Ann. § 23-55-101 et seq.], payment and proper discharge of all amounts owed due to judgments or orders from a court of competent jurisdiction or by anyone financially damaged by the bonded principal while engaging in the business of Money Transmission, including judgments for the misappropriation of funds paid into or deposited with the bonded principal