To operate as a money transmitter in Arizona, you have to get licensed at the state Department of Financial Institutions (DFI). While there are no specific pre-licensing requirements you need to cover, you will need to demonstrate a company net worth of at least $100,000 in order for your application to be accepted.
The application process itself will require you to provide a number of forms and documents to the Department, such as financial statements, a money transmitter bond, a criminal background check, and several others.
See below for a full explanation of the licensing process for Arizona money transmitters!
Arizona Money Transmitter Licensing Requirements
Before you can commence your application for a money transmitter license, you must register your business in the state.
- To register a corporation or limited liability company, you must apply at the Arizona State Corporation Commission
- To register a limited partnership or a limited liability partnership, you need to register with the Secretary of State
Once you’ve registered your business, you can proceed with covering the licensing requirements.
License application process
For your license application, you can either use the Nationwide Multistate Licensing System & Registry (NMLS) or apply through the Arizona Professional Licensure E-licensing Portal. Regardless of which way you take, the licensing requirements are identical.
To apply through the NMLS, you will need to register in the system first. After that, you can proceed with completing your application form and providing all additional documents that are required. These include:
- Company form MU1 (this is the main application form)
- Individual form MU2
- An audited financial statement prepared according to GAAP; the statement must demonstrate that your company has a net worth of at least $100,000
- Detailed responses to any disclosure questions on form MU2 which you have answered with “yes”
- A background check for every officer, director, partners, employee or control person with a share above 15% equity interest
- A Certificate of Good Standing
- A surety bond in an amount based on the number of authorized delegates and locations of the money transmitter in Arizona
Once you have completed your application forms and attached all of the above documents to the application, you can submit it electronically.
Along with your application, you will also need to pay an initial application fee of $1,500 and a license fee which will vary between $125 and $500, according to the time of year of your application.
On or before November 1 of every year, applicants must submit a license renewal application and pay a renewal fee. If you fail to renew by November 1, your license will be suspended.
You can apply to renew a suspended license by December 1 of that year. To do so, you will need to pay the renewal fee and an additional $100 for every day during which you have not submitted your renewal documents and fee.
Arizona Money Transmitter Bond Amount and Cost
According to 6-1205 of the Arizona Revised Statutes, the amount of your surety bond will depend on the number of locations and authorized delegates you have in the state. Bond amounts are as follows:
- $25,000 for 5 or fewer delegates and locations
- $100,000 for 6-20 delegates and locations
- $100,000 + an additional $5,000 for every delegate or location, for up to 200 delegates and locations; the total bond amount may not exceed $250,000
- $250,000 + an additional $5,000 for every delegate or location, for 201+ delegates and locations; the total bond amount may not exceed $500,000
To get bonded, you don’t need to pay the amount of your bond. Instead, you need to pay a surety bond premium which is equal to a percentage of the total amount of your bond. That percentage is determined by your surety, based on various financial factors, such as your personal credit score.
You can apply to get a free quote on your bond, with no additional obligations, by clicking on the banner below and completing our brief bond form! We’ll contact you with your quote, and provide you with any additional details you need.