Arizona Money Transmitter Bond

An Arizona Money Transmitter Bond is a type of surety bond that is required by the Arizona Department of Financial Institutions (DFI) to protect consumers from financial losses caused by licensed money transmitters who fail to remit money or otherwise comply with the Money Transmitter Act. While the license and bond is required by the DFFI, the application for the license is processed by the Nationwide Mortgage Licensing System (NMLS)

The bond amount will be the greater of $25,000 or an amount equal to one hundred percent of the licensee’s average daily money transmission liability in this state calculated for the most recently completed three-month period, up to a maximum of $500,000. However, if a licensee’s tangible net worth exceeds ten percent of total assets, the licensee may maintain a surety bond of $25,000.

The cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get an Arizona Money Transmitter Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Arizona Money Transmitter Bond will be shipped to the bond applicant. After receipt, the applicant should upload the document under “Surety Bond” in the Document Uploads
section of the Company Form (MU1).
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

Activities Permitted under the Money Transmitter License

This license authorizes the following activities:

• Electronic money transmitting
• Issuing and/or selling drafts
• Issuing money orders
• Issuing prepaid access/stored value
• Issuing traveler’s checks
• Selling money orders
• Selling prepaid access/stored value
• Selling traveler’s checks
• Virtual currency exchanging and trading services
• Other-money services

For more information visit Arizona Revised Statutes Title 6, Chapter 12 

How to Get an Arizona Money transmitter License

Here’s a guide on how to get an Arizona Money Transmitter License:

1. Pre-licensing Requirements: While there are no specific pre-licensing courses or exams required, Arizona law mandates a minimum company net worth of $100,000. This needs to be demonstrated through an audited financial statement prepared according to GAAP.

2. Application Process: You can apply through the Nationwide Multistate Licensing System & Registry (NMLS)
   • Company Form (MU1): This serves as the primary application form.
   • Individual Form (MU2): Required for each control person of the company.
   • Additional Documents:
     • Audited financial statement demonstrating a $100,000 minimum net worth.
     • Arizona Money Transmitter Bond
     • Business plan and organizational chart.
     • Anti-money laundering program documentation.
     • KYC (Know Your Customer) policies and procedures.
     • Bank statements and supporting documentation.
     • Fingerprints and background checks for individuals listed on the MU2 forms.

5. Application Fees:
   • NMLS application fee: $1,750
   • Arizona licensing fee: $400
6. Processing Time:  6-8 weeks
7. Additional Resources:
   • Arizona Money Transmitters – DIFI: https://difi.az.gov/money-transmitters-dfi
   • AZ Money Transmitter License New Application Checklist (Company): https://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/AZ_Money_Transmitter_License-Company-New-App-Checklist.pdf
   • AZ Money Transmitter Branch License New Application Checklist (Branch): https://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/AZ_Money_Transmitter_Branch_License-New-App-Checklist.pdf 
   • The Full Guide to Money Transmitter Bonds https://surety1.com/surety-bond-guides/money-transmitter-bonds-by-state/

Important Tips:

• Start early: Allow ample time for the application process, as it can take several weeks to receive approval.
• Gather all required documents upfront: This will help streamline the application process.
• Seek professional help: Consider consulting with an attorney or accountant who specializes in money transmitter licensing.

Contact the Arizona DFI for assistance: The DFI offers helpful resources and support throughout the application process.

By following these steps and utilizing the available resources, you can increase your chances of obtaining an Arizona Money Transmitter License and operating your business successfully.

Click Here to Visit our State By State Guide to Money Transmitter Bonds