Who requires it
Alaska Division of Banking and Securities — Money transmission
License & permit · Alaska
Alaska Money Transmitter Bond
Alaska money transmitters must furnish a bond or other accepted coverage under AS 06.55.104 before the Division of Banking and Securities will license the activity. The baseline formula is $25,000 plus $5,000 for each location, with the location addition capped at $125,000—so the ordinary schedule tops out at $150,000. Coverage may be a surety bond, a letter of credit, or another form the department accepts. The department may raise the required amount up to $500,000 based on the volume of money transmission business. Whatever instrument you use must remain available for claims for at least five years after the licensee stops providing money transmission services in Alaska.
Common bond amount
$25,000 + $5,000 per location
Location addition capped at $125,000 (ordinary max $150,000); department may require up to $500,000. Surety bond, letter of credit, or similar accepted.
How you file
Surety bond, letter of credit, or similar department-accepted coverage
Renewal
Keep while licensed; claims can be filed for at least 5 years after Alaska services stop
Who requires it
Applicants for and holders of Alaska money transmission licenses under AS 06.55 filing with the Division of Banking and Securities.
How much is required
Start at $25,000, add $5,000 for each location, and stop increasing once the location add-on reaches $125,000 (ordinary maximum $150,000). Expect a higher requirement—up to $500,000—if the department sizes coverage to your transmission volume.
How to get and file it
Count Alaska locations, compute the AS 06.55.104 amount (or confirm any higher department order), arrange a surety bond, letter of credit, or other accepted coverage in the exact licensee name, and file with Banking and Securities as the application requires. Maintain coverage for the license term and keep claims coverage available for at least five years after you stop Alaska money transmission services. Increase the amount when you add locations or when the department orders a higher figure.
Cost note
The formula result is the required bond amount, not the premium you pay. Letters of credit and other accepted instruments are alternatives, not free coverage. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Base
- $25,000
- Per location
- $5,000 each; total location addition ≤ $125,000
- Department increase
- May raise the required amount up to $500,000
- After you stop
- Claims can be filed for at least 5 years after ceasing Alaska money transmission services
Official sources
Related resources
Frequently asked questions
Is a letter of credit allowed instead of a surety bond?
Yes. AS 06.55.104 allows a surety bond, a letter of credit, or a similar device the department accepts. Confirm the exact form Banking and Securities will take before ordering coverage.
What is the maximum under the ordinary location formula?
Twenty-five thousand dollars plus up to one hundred twenty-five thousand dollars of location add-ons equals one hundred fifty thousand dollars. Separately, the department may require as much as five hundred thousand dollars based on volume.
Related Alaska bond guides
Mortgage Broker / Lender Bond
≥ $75,000
Alaska mortgage brokers and lenders must maintain a bond under AS 06.60.045. That statute directs the Department of Commerce, Community, and Economic Development to set the amount by regulation and allows one bond to cover every location listed on the license. Regulation 3 AAC 14.053 sets the operative floor at $75,000. The bond stays in force while you are licensed or registered and for three years after the license or registration ends, so claims may still land after the credential closes. File through the Division of Banking and Securities mortgage program, typically coordinated with NMLS when the department requires electronic filing.
Small Loan Company Bond
$25,000
Alaska small loan companies must file a $25,000 bond under AS 06.20.050 as part of the Division of Banking and Securities licensing package. The department’s application checklist requires an original bond from a surety authorized in Alaska, with the name matching the applicant’s full legal name and any DBA exactly. The checklist describes coverage running from the application date to January 1 of the following year, so applicants should confirm the current term language on the department’s bond form when renewing. Keep the bond aligned with the licensed small-loan office activity for the life of the credential.
Collection Agency Bond
$5,000
Alaska collection agencies must furnish $5,000 of coverage under AS 08.24.150. The statute accepts either a surety bond or a $5,000 cash deposit. The bond protects against the agency’s failure to account for money collected for clients and against other liabilities the collection-agency chapter addresses. A surety that withdraws must give notice; its liability ends sixty days after the withdrawal notice if a replacement bond is filed or the license is revoked. Keep uninterrupted coverage for the entire license period.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Alaska application
Alaska will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-12. This guide is based on verified educational content and official sources.
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