Alabama Money Transmitter Bond
Issued for money services businesses licensed in Alabama, backed by A-rated, Treasury-listed sureties.
Overview
Money services businesses seeking a money transmitter license in Alabama are required to post a surety bond as part of the state's licensing process. The bond guarantees the licensee's compliance with Alabama's money transmission statute and protects consumers who use the licensee's services from loss due to insolvency, fraud, or a failure to remit funds as required by law.
Who Needs This Bond
- Licensed money transmitters and payment processors operating in Alabama
- Remittance companies and digital wallet providers seeking Alabama licensure
- Multi-state MSBs adding this state to their license footprint
Obligee & Required Bond Amount
Obligee: Alabama Securities Commission
Required amount: Minimum $100,000, or the average daily outstanding obligations for money received for transmission plus 50% of the average daily outstanding payment instrument and stored value obligations, whichever is greater.
How This Bond Is Executed
Filing method: Paper bond
Notarization: Required
Alabama does not currently accept this bond as an NMLS Electronic Surety Bond, so it must be issued as a physical, wet-signed original. The signed original also needs to be notarized before it's filed.
How to Get Bonded
Apply
Complete a short application with your business and coverage details.
Get Quoted
We shop the market among A-rated carriers for the most competitive terms.
Get Covered
Sign your agreement and receive your bond or policy, often within a few business days.
Stay Compliant
We track renewal dates so your coverage stays active without a lapse.
Frequently Asked Questions
How much is the Alabama money transmitter bond?+
Minimum $100,000, or the average daily outstanding obligations for money received for transmission plus 50% of the average daily outstanding payment instrument and stored value obligations, whichever is greater. This is confirmed against the current statute at the time of your application, since regulators update these figures from time to time.
Who is the obligee on this bond?+
The Alabama Securities Commission, which is the agency that licenses and regulates money transmitters in Alabama.
Is this an NMLS e-bond or a paper bond in this state?+
Alabama does not currently accept this bond as an NMLS Electronic Surety Bond, so it must be issued as a physical, wet-signed original. The signed original also needs to be notarized before it's filed.
Do I need a separate bond for every state I'm licensed in?+
Yes. Money transmitter bonds are state-specific, so a license in Alabama requires its own bond naming the Alabama Securities Commission as obligee, separate from any other state bonds you hold.
How fast can Machaen Insurance Agency issue a Alabama money transmitter bond?+
Once your financials and license application details are in hand, we can typically issue an NMLS e-bond within a day or two; a paper bond takes a bit longer to account for signing, notarizing where required, and mailing the original.
Get a Quote for Alabama
Speak with our surety team about your Alabama money transmitter bond.
201-316-4159
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