Alaska Uniform Money Services Act Bond

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.

Alaska’s baseline security requirement for a money transmission license commonly starts at $25,000, and the required amount can scale (for example, additional amounts may apply based on locations or risk factors). Under AS 06.55.104, the Division of Banking and Securities can require security in an amount it finds acceptable and may increase the required security up to the statutory maximum if warranted by the licensee’s financial condition or risk profile. Applicants should confirm the exact required bond amount for their license through the Alaska DCCED Division of Banking and Securities and the NMLS license item instructions.

AS 06.55.802 lists exclusions from the Alaska Uniform Money Services Act, including the United States and its agencies, money transmission by the U.S. Postal Service (and certain contractors), state and local governments, and certain financial institutions such as banks and bank holding companies (subject to conditions). If your business falls within an AS 06.55.802 exclusion, you may not need the Alaska money transmission license or the associated bond.

AS 06.55.104 provides that the surety bond/security must remain available for claims for **at least five years after** the licensee ceases providing money services in Alaska, unless the Division allows a reduction or substitution of security based on reduced outstanding obligations.