Arkansas Uniform Money Services Act Changed: What This Means For Your Money Transmitter License

Arkansas Act 111 [Formally Senate Bill 187]

As of July 24, 2019, senate bill 187 (now Act 111) amends Arkansas’ process of money transmitter licenses and currency exchanges through the Uniform Money Services Act. These amendments alter surety bond and net worth amounts for money transmission license holders. They need to keep application and renewal obligations and deadlines; allow the use of international financial reporting standards (also regularly accepted accounting principles) to figure out the value of permitted investments licenses holders need to maintain; and repeal specific savings and transitional provisions. This bill was approved by the Arkansas Governor in February 2019.

Little Rock, Arkansas State Capitol

Arkansas amends their Uniform Money Services Act as of July 2019.

What do these Arkansas Act 111 changes mean?

The required surety bond and net worth amounts you need to maintain have changed. Prior to this change, the required minimum surety bond amount you could submit to the state was $50,000. An additional $10,000 was required for every other location the transmitter held within the state. The bond amount could not exceed $300,000. You also had to maintain a net worth of at least $250,000 determined in accordance with generally accepted accounting principles.

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The required bond amount post-July 2019 is between $10,000 and $300,000. Determine the specific bond amount you need by reviewing your previous year’s money transmission, stored value and payment instrument dollar volumes. This same method is how you determine your net worth and then calculating $10,000 for every $1,000,000. You must keep a minimum net worth of $50,000. Depending on the circumstances, the Arkansas commissioner can set specific required net worth and bond amounts.

“The changes represented in AR SB 187 reflect many of the changes brought about with the introduction of cryptocurrency and the ever-evolving landscape of fintech applied to traditional banking and acts of money transmission. Additionally, more state agencies are seeking to update their statutes or rules with requirements tied to production, volume or other metrics that will increase or decrease automatically based on future economic changes. These tiered or production changes are meant to provide elasticity in the bond requirement while maintaining the critical coverage to the protected parties under the surety obligation without having to continually update state laws. Expect to see additional changes similar to this in future state bills.”

Corban Enns, Area Vice President
Surety Solutions, A Gallagher Company

How does Arkansas Act 111 affect you?

If you currently hold an Arkansas money transmitter license, the new legislature won’t affect you until it’s time to renew your license or bond. Come Dec. 31, you will be renewing your license on an annual basis at $375 instead of biennially at $750. When the time comes to renew your money transmitter bond, determine your dollar volume of last year’s money transmission, payment instrument and stored value to calculate your bond amount.

Arkansas Money Transmitter License renew annually on December 31st.

License holders will now pay an annual fee of $375 instead of a biennial fee of $750. The license renewal date has changed from Dec. 1 to Dec. 31.

Get the best deal for your bond.

The bond is a requirement to keep or get your money transmitter license. However, the bonding process doesn’t have to be difficult. Get free quotes from leading surety companies using our simple online application.

Get your Arkansas Money Transmitter Bond, today!

If you have any questions about the bonding process, give our team of surety experts a call at 866.722.9239 or send us an email to

Related Articles:

What is a Money Transmitter Bond?

What is a Surety Bond?

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