Alaska Uniform Money Services Act Bond

# AK Alaska Uniform Money Services Act Bond - Complete Guide The **Alaska Uniform Money Services Act Bond** (often called an **Alaska Money Transmitter Bond** or **Money Services Bond**) is a required form of financial security for many businesses seeking to obtain (and maintain) an **Alaska Money Transmitter License**. It is required by the **Alaska Department of Commerce, Community, and Economic Development (DCCED)**, through the **Division of Banking and Securities**, under Alaska’s money services laws (commonly cited in **AS 06.55**, Alaska’s Uniform Money Services Act / Uniform Money Transmission Modernization Act). This guide explains what the bond is, who needs it, how to get it, what it costs, and how it fits into Alaska’s money transmitter licensing process. --- ## What is this bond and why is it required? A **surety bond** is a three-party agreement: - **Principal:** the applicant/licensee (your business) - **Obligee:** the state agency requiring the bond (Alaska DCCED – Division of Banking and Securities) - **Surety:** the bonding company that guarantees your compliance In practical terms, the bond is required because money transmitters handle consumer funds. Alaska requires a bond (or other acceptable security, such as a letter of credit) so that there is a financial backstop if the licensee: - violates Alaska’s money transmission laws or regulations - fails to properly transmit or handle customer funds - causes losses that are covered under the bond’s conditions Alaska law addresses security requirements for money services licensees, including the **form and duration** of the security. --- ## Who needs this bond (profession/business type) This bond is required for **any person or business applying for an Alaska money transmission license**, including entities engaging in **currency exchange services**, unless an exemption applies. Common business types that may need the bond include: - **Money transmitters / remittance companies** (receiving money for transmission) - **Payment processors** and payment facilitators (when their activities meet “money transmission” definitions) - **Stored value / prepaid access providers** - **Bill payment service providers** - **Foreign currency exchange businesses** - Certain **fintech platforms** that custody or move customer funds - Certain **virtual currency businesses** (depending on Alaska’s definitions and activity type) --- ## Exemptions (who may be excluded from licensure) Alaska’s statute includes exemptions/exclusions (see **AS 06.55.802** and related provisions). Your notes align with common categories of exemptions, including: - **The United States** and its departments/agencies/instrumentalities - **USPS** (often treated as a federal instrumentality) - **State or municipal governments** - Certain **financial institutions** (for example, banks and certain regulated entities, as specified) Exemptions are technical and fact-specific. If you believe you may be exempt, confirm the exact statutory basis and applicability. --- ## Bond amount (penal sum) and why it matters **Bond amount provided:** **$25,000**. The bond amount (penal sum) is the **maximum amount** the surety may be obligated to pay on covered claims, subject to the bond terms. It is **not** the price you pay. Alaska law provides for a minimum security requirement and gives the Division authority to require **additional security** depending on the licensee’s risk and business profile. --- ## How much does the bond cost (premium)? Your premium is based on underwriting factors (credit, financials, experience, compliance controls, and claims/regulatory history). For a $25,000 license bond, premiums are typically a percentage of the bond amount. **Typical market estimate for a $25,000 license bond:** - **Good credit:** often starts around **1–3%** (~$250–$750/year) - **Average credit:** often **3–5%** (~$750–$1,250/year) - **Credit challenges / higher-risk profiles:** may be higher and sometimes require added underwriting or collateral ⚠️ This is an **industry estimate**, not an official quote. Final pricing depends on underwriting approval and confirmation of Alaska’s current security requirement for your specific license type. --- ## How to obtain the Alaska Uniform Money Services Act Bond (step-by-step) Alaska money transmitter licensing is typically handled through **NMLS**, and the bond is often filed as an **Electronic Surety Bond (ESB)** in NMLS. 1. **Confirm licensing scope** - Identify whether your activities meet Alaska’s definition of money transmission/currency exchange and are not exempt. 2. **Start the Alaska Money Transmitter License application in NMLS** - Review the Alaska checklist and required uploads. 3. **Apply for the surety bond with a licensed surety provider** - Provide business and ownership details, and financials if required. 4. **Underwriting review** - The surety evaluates your risk profile and sets the premium. 5. **Issue the bond and file it through NMLS** - After you pay, the surety issues the bond and completes the ESB filing workflow in NMLS. 6. **Maintain continuous coverage** - Renew the bond on time and avoid lapses that can jeopardize licensure. --- ## Requirements and qualifications ### What the state typically requires (high-level) Beyond the bond, money transmitter licensing commonly involves: - NMLS MU1/MU2 filings and disclosures - business authorization to operate in Alaska - financial statement requirements and minimum net worth standards - background and compliance expectations ### What sureties typically evaluate Surety underwriting commonly reviews: - personal/business credit - liquidity/net worth and financial statements - ownership and management experience - compliance controls (including AML policies depending on the business) - prior enforcement actions or bond claims --- ## Obligee and regulatory authority **Obligee:** **Alaska Department of Commerce, Community, and Economic Development** **Division of Banking and Securities** This Division regulates money transmitter licensing and compliance in Alaska. --- ## Consequences of not having the bond If the bond is required as a condition of licensure, not posting or maintaining it may result in: - denial of the license application - suspension or revocation of a license - enforcement actions and potential civil penalties - inability to legally conduct regulated money services activity in Alaska --- ## Relevant government and regulatory links - **Alaska DCCED – Division of Banking and Securities (official):** https://www.commerce.alaska.gov/web/dbs - **AS 06.55.104 (security requirement) (legal code publisher):** https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ - **AS 06.55.802 (exemptions/exclusions) (legal code publisher):** https://law.justia.com/codes/alaska/2011/title06/chapter06-55/sec-06-55-802 - **NMLS (application portal):** https://nationwidelicensingsystem.org/ --- ## Summary The **Alaska Uniform Money Services Act Bond** is a required financial guarantee for many businesses that apply for an Alaska money transmission license, including those engaged in currency exchange. The bond protects the public and supports Alaska’s regulatory oversight of money transmitters. Confirm your exact bond amount and filing mechanics via the Alaska checklist in NMLS and guidance from the Division of Banking and Securities.

# AK Alaska Uniform Money Services Act Bond - Complete Guide ## Overview The **Alaska Uniform Money Services Act Bond** (often called the **Alaska Money Transmitter Bond** or **Money Services Surety Bond**) is a surety bond required as part of applying for (and maintaining) a **Money Transmission License** in Alaska. This bond is a consumer‑protection and compliance tool required by the **Alaska Department of Commerce, Community, and Economic Development (DCCED), Division of Banking and Securities** under Alaska’s **Uniform Money Services Act (Alaska Statutes Title 6, Chapter 55 — AS 06.55)**. If your business receives money for transmission, conducts currency exchange, issues/sells certain payment instruments, or sells/ issues stored value to Alaska customers, you may need to be licensed and bonded unless a statutory exemption applies. --- ## What is this bond and why is it required? ### What a surety bond is (plain language) A surety bond is a three‑party guarantee: - **Principal:** the money services business (the applicant/licensee) - **Obligee:** the State of Alaska regulator requiring the bond (Alaska DCCED — Division of Banking and Securities) - **Surety:** the surety company that issues the bond and backs the guarantee The bond is **not insurance for the business**. Instead, it is a financial guarantee that the licensee will comply with Alaska’s money services laws and will meet obligations that the bond form and Alaska law are designed to secure. ### Why Alaska requires a bond for money transmitters Money transmitters and other money services businesses handle consumer funds and move money quickly. Alaska requires a bond/security instrument to: 1. **Protect Alaska consumers** (and other claimants protected by statute) if a licensed entity fails to comply with legal obligations. 2. **Promote financial responsibility** in a high‑risk, high‑volume industry. 3. **Provide a source of recovery** for valid claims covered by the bond, up to the bond’s penal sum. The bond requirement is part of the “**security**” provision in **AS 06.55.104 (Security)**. **Statute reference (text mirror):** https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ --- ## Who specifically needs the Alaska Uniform Money Services Act Bond? You generally need this bond if you are applying for an Alaska **Money Transmission License** under AS 06.55 and you are not exempt. ### Common business types that may require licensing and bonding Businesses that often fall into the Alaska money transmission / money services category include: - **Money transmitters / remittance providers** (domestic or international) - **Currency exchange** businesses (exchanging one currency for another) - **Fintechs and payment apps** that receive money for transmission to another person or account - **Stored value / prepaid value providers** (depending on how the product is structured) - **Platforms using authorized delegates/agents** to provide money services on the company’s behalf If you serve Alaska residents online, Alaska may still treat your platform as operating in the state for licensing purposes. ### Exemptions (AS 06.55.802) Alaska law includes statutory exemptions in **AS 06.55.802**. Exemptions described in Alaska’s statute can include: - The **United States** or its agencies - The **U.S. Postal Service (USPS)** - State or municipal governments - Certain regulated financial institutions (for example, banks and bank holding companies), as specifically described in AS 06.55.802 **Exemptions reference (text mirror):** https://law.justia.com/codes/alaska/title-6/chapter-55/article-8/section-06-55-802/ Because exemptions are fact‑specific, businesses should confirm their status with the Division of Banking and Securities. --- ## Bond amount: $25,000 (and how Alaska calculates it) ### Base bond amount Your bond details specify a **bond amount of $25,000**. That amount is also the **statutory base level** referenced in **AS 06.55.104**. ### Per‑location increases (important) Alaska’s statute sets a schedule that starts at $25,000 and increases by location: - **$25,000 base**, plus - **$5,000 for each additional location**, up to a statutory cap (commonly administered as **$150,000** total) Alaska’s Division of Banking and Securities also publishes licensing guidance that explains how it counts “locations” for bond purposes. ### Where Alaska publishes the “location” guidance Alaska’s **Money Transmitter New Application Checklist** is the most practical state source for how the Division is currently applying the requirement (including electronic surety bond filing through NMLS and how “locations” are treated). **Checklist (PDF on Alaska DCCED website):** https://www.commerce.alaska.gov/web/Portals/3/pub/Money%20Transmitter%20Application%20Checklist%20Rev%20-%2020250505.pdf --- ## What does the bond cost (premium)? The **bond amount** (penal sum) is not the price you pay. You pay a **premium**, which is typically a percentage of the bond amount and is based on underwriting. ### Typical premium ranges (educational estimates) For a commercial license bond like a money transmitter bond, premiums commonly fall in ranges such as: - **Strong credit / strong financials:** often starting around **1%–3%** per year - **Average credit:** often around **3%–7%** per year - **Credit challenges / higher risk:** can be **7%–15%+** per year (situational) For a **$25,000** bond, that can translate into an estimated range such as: - **~$250–$750/year** (many strong applicants) - **~$750–$1,750/year** (more average profiles) - **$1,750+/year** (higher‑risk situations) Minimum premiums and fees can apply. ⚠️ **Pricing disclaimer:** These are estimated ranges based on industry research and are **not an official quote**. Final pricing requires underwriting approval, verification of Alaska’s bond requirement for your exact business model, and confirmation of minimum premiums/fees. --- ## Requirements and qualifications There are two sets of “requirements” to plan for: 1) **State licensing requirements** (DCCED/DBS via NMLS) 2) **Surety underwriting requirements** (to get the bond issued) ### Alaska licensing requirements (high level) Alaska generally uses the **Nationwide Multistate Licensing System (NMLS)** for money transmitter licensing. In addition to the surety bond/security, applicants commonly must provide items such as: - Company and control person disclosures (NMLS MU forms) - Financial statements and net worth/liquidity information - Business plan and compliance policies (including AML/BSA, where applicable) - Authorized delegate/agent information (if using delegates) Always rely on the current Alaska checklist and NMLS license requirements for the authoritative list. ### Surety underwriting requirements (typical) Sureties commonly evaluate: - Owners’ personal credit - Business financial strength (cash flow, net worth) - Industry experience and compliance history - Transaction volume and risk profile - Any prior regulatory actions, complaints, or bond claims Because money transmission involves consumer funds, underwriting may be more detailed than a small contractor or notary bond. --- ## The obligee and regulatory authority **Obligee:** **Alaska Department of Commerce, Community, and Economic Development** **Division of Banking and Securities** This Division is the agency responsible for Alaska’s money services licensing program and enforcement under AS 06.55. ### Official Alaska links (start here) - DCCED – Division of Banking & Securities (home): https://www.commerce.alaska.gov/web/dbs/home.aspx - Division of Banking & Securities — Money Services page: https://www.commerce.alaska.gov/web/dbs/financialinstitutions/moneyservices.aspx - Money Transmitter New Application Checklist (PDF): https://www.commerce.alaska.gov/web/Portals/3/pub/Money%20Transmitter%20Application%20Checklist%20Rev%20-%2020250505.pdf - AS 06.55.104 (Security) (text mirror): https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ - AS 06.55.802 (Exemptions) (text mirror): https://law.justia.com/codes/alaska/title-6/chapter-55/article-8/section-06-55-802/ - NMLS Resource Center (electronic surety bond / license items): https://mortgage.nationwidelicensingsystem.org/ --- ## How to obtain the Alaska Uniform Money Services Act Bond (step-by-step) ### Step 1: Confirm you are a covered money services business Review Alaska’s definitions in AS 06.55 and confirm that your services (money transmission and/or currency exchange) require licensing. ### Step 2: Prepare your NMLS application Create an NMLS account (or update your company record) and begin the Alaska Money Transmitter License application. ### Step 3: Calculate the required bond amount Start with the statutory base **$25,000** and add **$5,000 per additional location**. Then confirm in the Alaska checklist and with licensing staff how your channels (branches, website/app, authorized delegates) will be treated. ### Step 4: Apply for the bond through a surety provider Provide the surety with: - Legal entity name and any DBAs - NMLS ID and the state license you are applying for - Ownership information - Financial information requested by underwriting - Number of locations/authorized delegates ### Step 5: The surety files an Electronic Surety Bond (ESB) through NMLS Alaska’s checklist indicates the bond is typically filed as an **electronic surety bond via NMLS**. ### Step 6: Maintain the bond continuously Do not allow the bond to lapse or cancel. If the bond is canceled and not replaced promptly, Alaska may treat the license as out of compliance. --- ## Consequences of not having (or not maintaining) the bond Failing to file or maintain the required bond/security can result in: - **Application delays or denial** (incomplete application) - **License suspension or revocation** - **Cease-and-desist / enforcement actions** - **Civil penalties and legal exposure** - **Business disruption**, including inability to legally offer covered money services to Alaska customers Because the bond is a condition of licensure, treat it as a critical ongoing compliance item. --- ## Practical compliance tips - **Keep names consistent** (legal name/DBA must match NMLS). - **Track “locations”** as you grow (branches, agents/delegates, and even online channels may affect your bond amount). - **Renew early** to prevent cancellations. - **Invest in compliance** (strong AML/BSA controls and consumer dispute processes often help licensing and underwriting outcomes). --- ## Disclaimer This article is for educational purposes and is not legal advice. Alaska requirements, forms, and agency processes may change. Always verify requirements directly with Alaska DCCED’s Division of Banking and Securities and the current NMLS license item instructions.

# AK Alaska Uniform Money Services Act Bond - Complete Guide The **Alaska Uniform Money Services Act Bond** (often called the **Alaska Money Transmitter Bond** or **Money Services Bond**) is a surety bond required to apply for and maintain a **money transmission license** in Alaska. Under Alaska law (**AS 06.55**), the bond is intended to protect consumers and the public by helping ensure a licensee’s **faithful performance** and compliance with money services requirements. This guide explains what the bond is, who needs it, how to obtain it, what it typically costs, and where to find authoritative Alaska resources. --- ## What is this bond and why Alaska requires it? A surety bond is a three-party guarantee: - **Principal:** the business that must be bonded (the money transmitter / currency exchange provider) - **Obligee:** the government entity requiring the bond (Alaska regulator) - **Surety:** the surety company that issues the bond and guarantees the principal’s obligations Alaska requires security as a **condition of licensing** for money transmission to: - Create financial accountability for licensed money transmitters - Provide a mechanism for recovery when violations cause consumer harm - Encourage compliance with Alaska’s money services statutes and regulatory standards Authoritative source (statute): **AS 06.55.104 (Security)** - https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ --- ## Who specifically needs the Alaska Uniform Money Services Act Bond? You typically need this bond if you are applying for an Alaska **money transmission license** and you will engage in activities that meet Alaska’s definition of money transmission (which can include **currency exchange services**, depending on your model). Common business types that often require Alaska money transmission licensing and bonding include: - **Money transfer / remittance companies** (domestic or international) - **Payment platforms** that accept and transmit customer funds - **Mobile apps** that move money between users or to third parties - **Currency exchange providers** (retail or online) - Businesses that use **agents/authorized delegates** to take money in one place and transmit it elsewhere ### Exemptions (who may not need the license/bond) Alaska law provides **exclusions** for certain entities and activities in **AS 06.55.802**, which can include various government entities and certain regulated financial institutions (such as banks and bank holding companies), among others. Authoritative source (statute): **AS 06.55.802 (Exclusions)** - https://law.justia.com/codes/alaska/2011/title06/chapter06-55/sec-06-55-802/ Because exemption determinations can be fact-specific, verify applicability with counsel and/or the Division of Banking and Securities. --- ## Bond amount (penal sum): $25,000 minimum (and how it can increase) ### Minimum bond amount The minimum security amount for a money transmitter license application in Alaska is **$25,000**. ### Location-based increases Under **AS 06.55.104(a)**, the required security amount is: - **$25,000**, plus - **$5,000 for each location**, not to exceed **$125,000** in additional security This formula commonly results in a standard maximum of **$150,000** under the location-based method. Statute: https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ ### Regulator authority to require more security AS 06.55.104 also provides the Division authority to **increase the required security** when warranted by relevant criteria (for example, financial condition or other risk factors). --- ## What does the bond cover? (Claims and limitations) The bond is intended to secure the licensee’s obligations under Alaska’s money services law. If the principal violates the statute or fails to meet covered obligations and a claimant is damaged, a claim may be made against the bond. Important limitations: - The surety’s total liability is limited to the **bond’s penal sum**. - If the surety pays a valid claim, the principal must typically **reimburse the surety** (indemnity). The bond is not insurance for the business. AS 06.55.104 includes provisions on claims, liability limits, and continuity of coverage. --- ## How to obtain this bond (step-by-step) 1) **Confirm you need an Alaska money transmission license** - Review whether your business model constitutes money transmission/currency exchange under AS 06.55 and whether any exclusion applies. 2) **Determine your bond amount** - Start with **$25,000**, then add **$5,000 per location** (as applicable) and confirm whether Alaska will require an increased amount. 3) **Apply with a surety bond provider** - The surety must be authorized to do business in Alaska. 4) **Complete underwriting** Surety underwriters commonly review: - Owners/control persons’ credit - Financial statements and liquidity - Industry experience and compliance history - Any prior regulatory actions 5) **Pay the premium and have the bond issued** 6) **File the bond properly (often as an Electronic Surety Bond in NMLS)** - Alaska money transmitter licensing is managed through **NMLS**. - Alaska commonly requires an **Electronic Surety Bond (ESB) via NMLS** for money transmitter applicants. 7) **Maintain and renew the bond** - Keep the bond active for as long as you are licensed/operating, and renew before expiration. --- ## Cost/premium information (what you’ll typically pay) The **premium** is the fee paid to the surety to issue the bond. It is not the same as the bond amount. For many commercial license bonds, premiums are influenced by: - Personal and business credit - Financial strength (money services is often underwritten more heavily) - Prior claims or regulatory history - Business model risk ### Typical pricing range (industry estimate) For smaller license bonds (including many around $25,000), premiums commonly fall into: - **Flat minimum premium programs** for very qualified applicants (often around **$100–$250 per year**) - Or **rate-based pricing** for higher-risk profiles (often a percentage of the bond amount) ⚠️ This is an estimated market range and **not an official quote**. Final pricing requires underwriting approval and confirmation of Alaska’s required bond amount and any minimum premiums/fees. --- ## Requirements and qualifications (what Alaska and sureties expect) The bond is only one component of licensing. Many Alaska money transmitter applicants should be prepared for requirements commonly found on NMLS checklists and regulator requests, such as: - Detailed company and control-person disclosures in **NMLS** - Financial statements (often audited or CPA-prepared) - Business plan and flow-of-funds documentation - Compliance policies, including AML/BSA controls appropriate to the business Because AS 06.55.104 allows Alaska to increase security based on risk, complete and well-organized documentation can reduce delays. --- ## The obligee and regulatory authority **Obligee / regulator:** **Alaska Department of Commerce, Community, and Economic Development (DCCED)** **Division of Banking and Securities** Key authoritative links: - Security (bond) statute: **AS 06.55.104** https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ - Exclusions/exemptions: **AS 06.55.802** https://law.justia.com/codes/alaska/2011/title06/chapter06-55/sec-06-55-802/ - Alaska DCCED main site: https://commerce.alaska.gov/ - NMLS (licensing system used for applications and electronic surety bonds): https://nationwidelicensingsystem.org/ --- ## Consequences of not having the bond Because the bond is a condition of licensing, not having it (or letting it lapse) can lead to: - **Application denial or delays** - **License suspension/revocation** if the bond is cancelled or not renewed - **Regulatory enforcement** (including cease-and-desist orders and penalties) - Loss of key business relationships (banks, partners, payment networks often require proof of bonding and licensure) --- ## Summary The **Alaska Uniform Money Services Act Bond** is a required surety bond for businesses applying for an Alaska **money transmission license**, including many that provide **currency exchange** services. Alaska’s statutory minimum security is **$25,000**, and the amount may increase based on locations and risk factors. In most cases, the bond is obtained from an Alaska-authorized surety and filed (commonly as an electronic surety bond) through **NMLS**. For authoritative details, rely on **AS 06.55.104** (bond/security) and **AS 06.55.802** (exemptions), along with Alaska’s NMLS checklist for money transmitters.

The obligee is the State of Alaska, administered through the Alaska Department of Commerce, Community, and Economic Development (DCCED), Division of Banking and Securities—the regulator that requires the bond as part of a money transmission (money services) license application.

Any person or business applying for an Alaska money transmission license under AS 06.55 (including entities providing money transmission and currency exchange services) must provide required security—commonly satisfied with a surety bond—unless an exemption applies under AS 06.55.802 (for example, certain government entities and specified financial institutions).

Alaska requires an Electronic Surety Bond (ESB) filed through NMLS. The base amount is $25,000, and the Division may require additional bond coverage based on the number of locations and risk factors under AS 06.55 (including the Department’s authority to increase the required security for higher‑risk activity).

The Alaska Division of Banking and Securities generally requires the surety bond to be filed electronically through NMLS as an Electronic Surety Bond (ESB) as part of the money services (money transmission) license application and renewal process. Your surety/agent submits the ESB in NMLS for the regulator’s acceptance.

# AK Alaska Uniform Money Services Act Bond - Complete Guide **Bond ID:** 2202133d-77ed-4ed3-9e3d-7080b8b0a636 **State:** Alaska (AK) **Bond amount (penal sum):** $25,000 (baseline/minimum; may be increased by the regulator in certain cases) **Obligee:** Alaska Department of Commerce, Community, and Economic Development (DCCED) — Division of Banking and Securities (DBS) **Category:** bond_type The **Alaska Uniform Money Services Act Bond** (often called the **Alaska money transmitter bond** or **Alaska money services bond**) is a license surety bond (a form of “security” under Alaska law) required as a condition of applying for—and maintaining—an Alaska money transmission license. This comprehensive guide explains what the bond is, who needs it (including currency exchange providers when covered), exemptions, the $25,000 bond amount, how to obtain and file the bond (often through NMLS electronic surety bond workflows), typical premium ranges, underwriting requirements, consequences of noncompliance, and official Alaska links where the bond requirement is published. --- ## 1) What is the Alaska Uniform Money Services Act Bond? A surety bond is a three‑party agreement: - **Principal:** the business that must be bonded (the Alaska money transmitter / money services license applicant) - **Obligee:** the government agency requiring the bond (**State of Alaska**, administered by **DCCED Division of Banking and Securities**) - **Surety:** the surety company that issues the bond and guarantees the principal’s covered obligations In plain language, this bond is a **financial guarantee** that a money transmitter will follow Alaska’s money services laws and properly meet obligations tied to licensed activity. It is not insurance for the business. If the surety pays a valid claim, the principal is typically required to **reimburse the surety** under the indemnity agreement. ### Why Alaska requires it Money transmitters and similar money services businesses can handle significant customer funds (including remittances, stored value, and currency exchange). Alaska requires a bond/security to: - protect consumers and the public - support regulatory enforcement - ensure a licensee can be held financially accountable for covered violations **Key statute reference (security/bond requirement):** - AS 06.55.104 (Security): https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ --- ## 2) When is this bond required? This bond/security is required **as a condition of application** for a money transmission license under the Alaska Uniform Money Services Act. If the bond is missing or not properly filed/authorized (for example, if the electronic surety bond is not properly linked/authorized in NMLS), the application can be delayed or treated as incomplete. --- ## 3) Who specifically needs this bond? Per your bond details and Alaska’s statutory framework, this bond is required for: - **Any person applying for a money transmission license in Alaska**, including those engaging in **currency exchange services** when those activities fall under Alaska’s money services licensing triggers. Common types of businesses that often require a money transmission license (and therefore this bond) include: - Money transmitters / remittance providers - Payment instrument issuers/sellers (depending on the product structure) - Stored value / prepaid access businesses (depending on structure) - Currency exchange businesses - Fintech platforms that receive and transmit money on behalf of users ### “Any person” includes many entity types In Alaska statutes, “person” can include: - LLCs - corporations - partnerships - sole proprietors --- ## 4) Exemptions (AS 06.55.802) Alaska provides exemptions under **AS 06.55.802**. You noted key examples, which commonly 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** (and others specified in AS 06.55.802) Because exemption status can be technical and fact-dependent, businesses should review AS 06.55.802 carefully and confirm with DBS if uncertain. Public statute mirror for exemptions (navigate within the chapter): - https://law.justia.com/codes/alaska/title-6/chapter-55/ --- ## 5) Bond amount: $25,000 (and how Alaska can require more) ### Bond amount provided For this bond record, the bond amount is: - **$25,000** This is the bond’s **penal sum** (maximum amount the surety may be required to pay for valid claims, subject to the bond form and law). It is not the amount you pay. ### Alaska can require more than $25,000 Under **AS 06.55.104**, Alaska’s “security” requirement commonly starts at $25,000 and can increase (for example, based on locations and/or risk factors). The Division of Banking and Securities also has authority to require a higher amount up to the statutory maximum when warranted. **Statute reference:** - AS 06.55.104 (Security): https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ --- ## 6) How much does the bond cost (premium)? The **bond amount** ($25,000) is not the price. The price is the **premium**, which is usually charged annually. ### Typical premium ranges (educational estimates) For a $25,000 license bond, pricing commonly falls into broad market tiers such as: - **Good credit:** often around **1%–3%** of the bond amount per year (about **$250–$750/year**) - **Average credit:** often around **3%–7%** (about **$750–$1,750/year**) - **Credit challenges / higher risk:** often **7%–15%+** (about **$1,750–$3,750+/year**) Many sureties also apply **minimum premiums** (commonly $250 or similar) and may charge small administrative fees. ⚠️ **Pricing disclaimer:** These are estimated ranges based on industry research and are **not an official quote**. Final pricing requires underwriting approval, credit review, confirmation of Alaska’s required bond amount for your license, and verification of minimum premiums/fees. --- ## 7) Requirements and qualifications (licensing + surety underwriting) ### A) Licensing-side requirements (high level) Money transmission licensing is typically more heavily regulated than many other license types. Alaska generally requires a complete application package, and the bond is one key part. The definitive requirements are in: - Alaska statutes (AS 06.55), - the Alaska regulator’s published guidance, and - the Alaska license item checklist in NMLS (where applicable). ### B) Surety underwriting requirements (bond approval) Sureties commonly evaluate: - Owners’/control persons’ personal credit - Business financial strength and liquidity - Compliance history and any prior regulatory actions - Nature of the business model (volume, delegate networks, cross-border activity) Applicants with stronger credit and financials generally qualify for lower rates and faster approval. --- ## 8) How to obtain the bond (step-by-step) ### Step 1 — Confirm you need an Alaska money transmission license Review your business activities against Alaska’s statutory definitions and exemptions. ### Step 2 — Confirm the required bond/security amount Although $25,000 is a common baseline, confirm whether your required amount is higher due to locations or other factors. ### Step 3 — Apply with a surety provider authorized in Alaska Provide: - legal business name and DBA (must match your license application) - ownership/control person information - financial statements if requested ### Step 4 — Underwriting and quote The surety evaluates risk and quotes your premium. ### Step 5 — Purchase the bond Pay the premium and sign the indemnity agreement. ### Step 6 — File the bond as instructed (often through NMLS ESB) Many money transmitter bonds are now filed as **Electronic Surety Bonds (ESB)** through **NMLS**. In an ESB workflow: - the surety files/uploads the bond electronically in NMLS, and - the applicant may need to **authorize** the surety/bond in NMLS so Alaska can view it. Always follow the Alaska license checklist instructions and DBS direction. ### Step 7 — Maintain the bond Renew the bond on time every year. A bond lapse can jeopardize your license. --- ## 9) Consequences of not having the bond Because the bond is a condition of licensing, failure to obtain or maintain it can lead to: - application delays or denial - suspension, revocation, or non-renewal of an existing license - administrative enforcement actions and possible penalties - disruption of banking and payment partner relationships --- ## 10) Official links and regulatory resources (Alaska) ### Alaska Division of Banking and Securities (official) - DBS home page: https://www.commerce.alaska.gov/web/dbs/ ### Alaska DBS portal used for licensing/forms - DBS STAR portal: https://portal.akdbsstar.us ### Alaska Uniform Money Services Act security requirement (law text) - AS 06.55.104: https://law.justia.com/codes/alaska/title-6/chapter-55/article-1/section-06-55-104/ --- ## Conclusion The **AK Alaska Uniform Money Services Act Bond** is a required $25,000 (baseline) license bond/security for businesses seeking an Alaska money transmission license, including those providing currency exchange services when covered. It supports Alaska’s consumer protection and enforcement framework under **AS 06.55** and must be properly obtained, filed (often electronically through NMLS), and maintained continuously to remain in compliance.