Who needs to register?
Under Arkansas statute, those receiving compensation or expecting to receive compensation, directly or indirectly, for conducting money transmission for persons located in Arkansas or conducting money transmission from a physical location in Arkansas for persons located outside Arkansas must obtain a money transmitter license with the state.
Note: As of 2011, Arkansas repealed the exemption for money transmitters licensed in other states adopting the Model Act.
Who is the regulator?
Arkansas Securities Commissioner
What are the money transmitter license requirements?
To apply as a money transmitter requires the following fees and documentation:
- $1,500 application fee
- $750 license fee
- Sample contract for authorized delegates, form of payment instrument, or instrument upon which stored value is recorded
- Audited financial statements for most recent year and, if available, two prior years; if subsidiary, audited financial statements for parent company
- Copy of unconsolidated financial statements for last fiscal year and, if available, two prior years
- Most recent SEC reports (if registered)
- Certificate of Resolution naming individuals authorized to sign documents on applicant’s behalf
- Authority to obtain information from outside sources form
- Certificate of good standing in Arizona or state of incorporation
- Articles of Incorporation, Organization and Operating Agreement, and Partnership Agreement
- List of authorized delegates and physical locations, including limited service locations and mobile units
- Company biographical information
- List of states in which applicant does money transmissions
- List of principal officers, directors, partners, owners and members
- List of anyone who owns 25% or more of company
- Civil or criminal proceedings against company, current and past, or any material litigation in the last 10 years
- Involvement in any bankruptcy proceedings
- Disclosure as to whether the applicant was denied a money transmitter license in another state
- Disclosure as to whether the applicant has been subject to administrative action or discipline
- Description of money services previously provided and intending to provide in Arkansas
- List of financial institutions through which payments will be made
- Description of source of money and credit used to provide services
- Documentation proving a net worth of at least $250,000
What are the general bonding requirements?
Bonding requirements for Arkansas include:
- $50,000 surety bond
- $10,000 bond for each additional location, not exceeding $300,000
- Commissioner may increase surety bond to a maximum of $1,000,000 if the financial condition of the money transmitter licensee so requires.