Money services bond cost
The Alaska Department of Commerce, Community, and Economic Development requires legally operating money services businesses to post a surety bond when applying for a license in the state. The uniform money services bond must provide minimum coverage of $25,000, increasing by $5,000 per location, typically not to exceed $125,000. If a higher amount of coverage is required, it will be determined by the Department of Commerce, Community, and Economic Development. Verify your required bond amount before requesting your surety bond quote.
Your bond premium – the amount you pay for coverage – will depend on several factors, including your personal financial statement.
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.
Why this bond
Uniform money services bonds ensure that money services businesses comply with all applicable rules and regulations for their industry in Alaska. In the event that the principal (money services businesses) does not abide by those laws, the bond protects customers from financial damage. Violations include:
- Engaging in fraud, intentional misrepresentation, or gross negligence
- Not cooperating with an investigation or examination by the department
- Business becoming insolvent or suspending payment of its obligations
These violations can result in revocation of the money services business’ license. Review the statutes in the Additional Information section for a full list of violations.
This bond remains in full force and effect unless it is canceled with 30 days’ written notice sent to the Director of the Alaska Division of Banking and Securities.
If a money service business is already licensed in another state that has enacted the Uniform Money Services Act or other similar legislation, they may submit materials to the Department of Commerce, Community, and Economic Development. Some of these materials include:
- $250 non-refundable application fee
- Certification of license history in another state
- Proof that the required surety bond (security) has been obtained and is in force
- Signed release of information allowing the Department of Commerce, Community, and Economic Development to obtain information to verify the applicant’s eligibility to engage in money transmission in another state
See Section 06.55.103 of the Alaska Statutes for a complete list of required materials.
Start an uniform money service
Alaska money services businesses are required to become licensed before operating in the state. Licensing requirements include:
- $500 non-refundable application and investigation fee, plus $100 per additional location
- Minimum net worth of $25,000
- Description of any money services previously offered by the applicant, and of services the applicant intends to provide in the state
The application for licensure in the Important Links section contains a full list of requirements.
Apply for your surety bond
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