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.

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.