AK Alaska Uniform Money Services Act Bond (Money Transmission License Bond) — Educational Guide
This guide explains the AK Alaska Uniform Money Services Act Bond required for applicants seeking a money transmission license in Alaska, including those providing currency exchange services. It is written for educational purposes and uses only the bond facts provided.
Known source (program page): https://www.commerce.alaska.gov/web/dbs/ConsumerFinance/MoneyServiceBusinesses
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What this bond is
The AK Alaska Uniform Money Services Act Bond is a $25,000 surety bond required as a condition of application for a money transmission license under the Alaska Uniform Money Services Act.
A surety bond is a three‑party arrangement:
- Principal: the applicant (the person applying for the Alaska money transmission license)
- Obligee: the Alaska Department of Commerce, Community, and Economic Development, Division of Banking and Securities
- Surety: the bonding company that issues the bond
This bond is tied to the licensing process for money transmission in Alaska. It is not described here as insurance for the business; rather, it is a compliance and financial responsibility instrument required by the licensing authority.
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Bond amount
- Bond amount: $25,000
The bond amount is the stated penal sum of the bond. This guide does not provide pricing, premium ranges, or underwriting rules because those details were not supplied.
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Who needs the Alaska Uniform Money Services Act Bond
Any person applying for a money transmission license in Alaska needs this bond.
This includes applicants who engage in currency exchange services.
In other words, if you are applying for an Alaska money transmission license—and your activities include money transmission and/or currency exchange services as part of that licensing category—this bond is part of the application condition.
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When the bond is required
The bond is required as a condition of application for a money transmission license under the Alaska Uniform Money Services Act.
That means the bond is part of what must be satisfied in order to apply for (and proceed with) the licensing process. This guide does not specify submission steps, forms, or filing methods because those details were not provided.
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Obligee (the agency requiring the bond)
The bond’s obligee is:
Alaska Department of Commerce, Community, and Economic Development Division of Banking and Securities
This is the state authority identified as the obligee for the bond requirement.
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What activities are included (money transmission and currency exchange)
Based on the supplied facts, the bond requirement applies to applicants for a money transmission license, and that licensing category includes those engaging in currency exchange services.
If your business model includes exchanging one currency for another (currency exchange services) and you are applying for the Alaska money transmission license, the bond requirement applies.
This guide does not attempt to define the full scope of “money transmission” or “currency exchange services” beyond what was provided.
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Exemptions (who may not need the bond)
The supplied facts list exemptions under AS 06.55.802. Exemptions include:
- The United States or its agencies
- The United States Postal Service (USPS)
- State or municipal governments
- Certain financial institutions such as banks and bank holding companies (as specified in AS 06.55.802)
If you believe you fall into an exempt category, you should confirm how the exemption applies to your situation using the program information page provided above.
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How this bond fits into the licensing process (high-level)
Because the bond is required as a condition of application, it functions as a licensing prerequisite for Alaska money transmission applicants.
At a high level, applicants typically treat the bond as one of the items that must be obtained and maintained to satisfy the licensing authority’s requirements. This guide does not provide procedural steps (such as where to upload, mail, or file the bond) because those details were not supplied.
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Key parties and responsibilities (plain-language overview)
Even without getting into pricing or claim procedures, it helps to understand the roles:
- You (the applicant / principal) are responsible for meeting licensing requirements and maintaining compliance.
- The Alaska Division of Banking and Securities (obligee) requires the bond as part of the licensing framework.
- The surety issues the bond and provides the financial backing associated with the bond’s penal sum.
This guide does not describe claim triggers, claim limits beyond the bond amount, or legal standards because those details were not provided.
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Practical checklist (based only on supplied facts)
Use this checklist to self‑screen whether the bond requirement likely applies:
- Are you applying for a money transmission license in Alaska?
- If yes, the bond is required as a condition of application.
- Do your activities include currency exchange services?
- If yes, you are included within the group described as needing the money transmission license and therefore the bond.
- Are you an exempt entity under AS 06.55.802?
- Exemptions include the U.S. government or its agencies, USPS, state or municipal governments, and certain financial institutions such as banks and bank holding companies.
If you are not exempt and you are applying for the license, the bond amount is $25,000 and the obligee is the Alaska Department of Commerce, Community, and Economic Development, Division of Banking and Securities.
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Where to find official program information
The supplied source URL for Alaska’s money service business information is:
- https://www.commerce.alaska.gov/web/dbs/ConsumerFinance/MoneyServiceBusinesses
Use that page to locate official guidance and any application materials or instructions.
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Bond-specific FAQs
1) What is the bond amount for the AK Alaska Uniform Money Services Act Bond?
The bond amount is $25,000.
2) Who is the obligee on the Alaska Uniform Money Services Act Bond?
The obligee is the Alaska Department of Commerce, Community, and Economic Development, Division of Banking and Securities.
3) Who needs this bond in Alaska?
Any person applying for a money transmission license in Alaska needs this bond, and that includes applicants engaging in currency exchange services, unless an exemption applies under AS 06.55.802 (such as certain government entities and certain financial institutions like banks and bank holding companies).
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