Arizona Money Transmitter Bond Overview
- Purpose: To ensure money transmission companies operate honestly and legally
- Who Needs It: All money transmitter licensees in Arizona
- Regulating Body: The Arizona Department of Financial Institutions
- Bond Amount: $25,000 or value of average daily liability
- Minimum Price: $250 or 1% of the bond amount
What Is an Arizona Money Transmitter Bond?
An Arizona money transmitter bond is a financial guarantee that licensed money transmission and bill paying companies will operate ethically.
The bond offers a means of financial compensation if any clients are harmed by a bonded business — whether through fraud or negligence.
Who Needs a Money Transmitter Bond?
If you do any of the following business activities for a fee, you need a money transmitter license and bond:
- Receive money for transmission
- Exchange, sell or issue payment instruments
- Perform bill-paying services for obligors
There are some exemptions to the license requirement, but any licensee must be bonded for the duration of the license term.
Bond Coverage Requirements for Arizona Money Transmitters
The required bond coverage is the greater of $25,000 or 100% of your average daily money transmission liability for the past quarter, with a $500,000 maximum.
Or, if your net worth is greater than 10% of total assets, you can keep the $25,000 bond amount regardless of your transmission volume.
How Much Do Money Transmitter Bonds Cost in Arizona?
Arizona money transmitter bond prices start at $250 or 1% of the total coverage amount. Rates are determined based on the applicant’s risk.
You’ll need to provide information for a soft credit check and, in some cases, business and personal financial statements. Apply now to get your quote in one business day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Arizona Money Transmitter Bond Work?
This type of license and permit bond creates a financially-binding contract between three parties: the principal, obligee and surety.
| Bond Party | Description |
|---|---|
| 1) Principal | The money transmission business owner(s) |
| 2) Obligee | The Arizona Department of Financial Institutions |
| 3) Surety | The issuing surety provider |
As the bond principal, you are responsible for ensuring that your business operates according to state and industry regulations. If not, the bond holds you financially liable to the DFI for repaying any claims.
How Do I Get a Money Transmitter Bond in Arizona?
Start the bonding process by submitting a quote request. We’ll do a soft credit check to determine your financial risk and provide a personalized quote invoice.
You can sign the documents and purchase the bond online 24/7 at your convenience. After checking out, you’ll receive the official bond via email.
How Do I File My Bond?
We’ll email you the bond form shortly after purchase. Attach your official bond form in the Document Uploads section of the Company Form MU1 when you submit your license application in NMLS.
How Do I Renew My Money Transmitter Bond?
If you are extending your license for an additional year, you also need to make sure your surety bond is renewed.
When you work with SuretyBonds.com, we’ll provide email and SMS renewal reminders. You can pay the attached invoice to renew your bond in minutes. However, make sure your bond amount is still correct based on your recent money transmission volume.
How Do I Update My Bond Amount?
Any changes to your money transmitter bond must be done by the issuing surety company. If your bond amount needs to be updated, call or email SuretyBonds.com with the new information. We’ll provide you with next steps to update your coverage.
How to Get a Money Transmitter License in Arizona
To get a money transmitter license in Arizona, apply through the Nationwide Multistate Licensing System (NMLS).
You’ll need to include several documents, including proof of net worth, your surety bond, business plan, and background checks for all control persons.
There is a $1,500 application fee and $120 processing fee. Follow the NMLS Licensing Checklist to make sure you complete everything properly.
The Arizona Department of Insurance and Financial Institutions (DFI) will review your application and issue your license once approved.
