What Is an Alaska Uniform Money Services Bond?
If you’d like to run a money services in Alaska, you will need to get licensed in the state. Among the requirements you have to meet is posting a money services bond.
The goal of getting bonded is to provide an extra layer of protection for the state and for the general public. The bond ensures you will follow all applicable rules and regulations.
Your money services bond works like a contract between three parties. Your company is the principal that has to obtain the bond. The Alaska Department of Commerce, Community and Economic Development is the obligee. The third entity is the surety, which provides you with the bond.
Questions about Money Transmitter Bonds in Alaska
Who needs to get bonded?
Any entity that wants to operate as a uniform money services in Alaska needs to obtain a state license from the Department of Commerce, Community and Economic Development. Posting a surety bond is one of the obligatory requirements you have to meet.
The bond amount is between $25,000 and $125,000, depending on the number of your locations. You have to present the bond in the official bond form. It guarantees your compliance with the Alaska Statutes and Regulations for Money Services.
What is the Alaska uniform money services bond cost?
You have to obtain a surety bond in a minimum amount of $25,000. For every additional location you have, you need to add $5,000 to this amount, with maximum amount being $125,000.
This is the required bond amount, but this is not your actual surety bond cost. You have to pay only a few percentages of this amount, called the bond premium.
The precise bond price that you have to pay is set after a careful examination of numerous factors. The most important one is your personal credit score. Other essential criteria include your business financials, as well as assets and liquidity you may showcase. The more stable all these factors are, the smaller your bond cost is likely to be.
Rates between 1% and 5% are typical for applicants with solid finances. For more information, check the table below.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Alaska uniform money services bond||$25,000 to $125,000||$187.5-$375 to $1,875-$3,750||$250-$625 to $2,500-$6,250||$625-$1,250 to $6,250-$12,500||$1,250-$2,500 to $12,500-$25,000|
Can I obtain this bond with problematic finances?
Yes, with Lance Surety Bonds you can get bonded even if you struggle with your finances. We operate our Bad Credit Surety Bonds program for applicants with a low credit score, tax liens, bankruptcies, or civil judgements.
The rates are between 5%-10%, as they need to compensate for the higher bonding risk. Since we keep close relations with a number of A-rated, T-listed surety companies, you are still able to get a top bonding price with us, no matter your credit score.
What is the bond application process?
You can find in-depth information about the bonding process on our extensive How to Get Bonded page
If you have questions, we’re here to help. Just call us at (877) 514-5146, and our bonding experts will assist you.
How are bond claims handled for money service businesses?
Unlike insurance, your money services bond does not protect your company. It safeguards the interests of your customers. If you cause harm to them due to your fraudulent or illegal actions, you can end up with a claim against your surety bond.
The claimants can seek a reimbursement up to the penal sum of your bond, which is between $25,000 and $125,000 for Alaska money services businesses. If the case is proven, you are liable to cover the costs.
The surety that bonded you may pay at first, but you have to compensate it fully soon after. This makes bond claims harmful for your business, so it’s best to avoid them as much as possible.