Arizona Money Transmitter Bond

Arizona Money Transmitter Bond

All money transmitters are required by the Arizona Department of Financial Institutions (AZDFI) to hold a valid license, as stated by Arizona Statute ARS 6-1202. The license requires a Money Transmitter Bond, which Jet offers, that  serves as a fiscal promise to the AZDFI that money transmitters will conduct safe and secure transfers of money between parties.

APPLY FOR A MONEY TRANSMITTER BOND

With Jet you can set up an account with us to handle all you money transmitter bonds across any and all states you are doing business. This will save time and money when handling your surety needs!

What Factors Affect the Cost of the Money Transmitter Bond?

For the Arizona Money Transmitter bond the price starts at Jet offers $10 a month or $100 annually for the $25,000 bond limit. The rate is $40 a month or $400 annually if your organization needs a $100,000 bond limit. Underwriters may factor in personal credit, financial statements and experience to determine  pricing of the bond. How the bond limit is determined is detailed below:

# of Authorized Delegates/LocationsBond LimitMonthly CostAnnual Cost
0-5$25,000$10$100
6-20$100,000$40$400
21-200$100,000 + $5,000 for each delegate/location. Max of $250,000$40 plus $2 per location$400 plus $20 per location
200+$250,000 + $5,000 for each delegate/location. Max of $500,000$100 plus $2 per location$1,000 plus $20 per location
Arizona Money Transmitter Bond Limit Calculation

Jet offers monthly payment plans to better simplify your involvement. Once purchased and so long as the card on file goes through the bond remains active.

What Is the Purpose of the Money Transmitter Bond?

Jet provides this bond to the AZDFI as a guarantee that you, the money transmitter, can perform your trade without causing damages to the public. Should the public be injured through fraudulent or unlawful actions of a money transmitter and not remedied, Jet will make proper restitution.

The Arizona State Legislature put laws in place to regulate the money transmitter profession in Arizona. The Arizona Department of Financial Institutions enforces the rules surrounding money transmitter licensing and practices. The AZDFI’s goal is to promote the safety and security of the financial services industry as a whole. 

The money transmitter has the opportunity to act fraudulently for their own gain at the detriment of their own clients. The Money Transmitter License Bond is a tool that serves the State’s purpose to protect citizens from unlawful damages, but mandating a third party (Jet) guarantee payment to injured parties.

How Does the Application Process Work With Jet?

The initial online application from Jet will ask for basic business information and a social security number for a soft credit check. Have no fear, as our credit check will not impact your credit score. One of our underwriters will review the submission and either provide a quote or request more information to determine our final rate for the bond.

With our underwriting completed, the bond will be available for immediate purchase. A downloadable copy will be available upon completion of the application.

How Does the Bond Get Filed to the Arizona Department of Financial Institutions?

In most cases money transmitting organizations files their surety bonds through the NMLS. Otherwise filing can be done via email to the Arizona DFI. Jet will send you a completed copy of the bond for filing following purchase

All other paperwork outside of bond and application filing should be sent to the following address:

Arizona Department of Financial Institutions
100 N 15th Ave, Suite 261
Phoenix, AZ 85007

Can I Cancel My Money Transmitter Bond and Get a Refund?

The bond can be cancelled by simply notifying Jet via mail or email. Jet will cancel the bond with the AZDFI, but the bond will remain active for 30 days with the AZDFI. Anyunearned premium will be calculated by Jet at the point of release, and a refund will be provided.

For monthly payment subscribers Jet will stop payment upon request but have to charge one payment before stopping the auto-withdrawal as the bond remains active during that 30 day cancellation period.

Will I Need to Renew My Money Transmitter Bond?

Not if you are on Jet’s monthly plan! As long as payments continue, the bond will stay active.

If you are on an annual payment plan, Jet will notify you regarding the renewal of your Money Transmitter Bond through mail and email. Jet only requires payment to renew your bond. Upon renewal, a copy of the updated bond and receipt of purchase will be sent to you personally.

How Does a Money Transmitter Avoid Bond Claims?

Money transmitters must follow through with their legal duties pertinent to statutes ARS 6-1205, and should be familiar with their required duties before operating. To save the headache of reading through legislative code, Jet has summarized the foremost points below:

Violations of Lawful DutiesLicense and Legal Requirements
Failing to maintain net worth requirementsMaintaining a net worth of at least $100,000 + $50,000 for each location to a maximum of $500,000
Operating through money laundering or other forms of illegally obtained fundsUpholding bonding requirements stated above
Racketeering by not being a registered and licensed money transmitter businessAdmitting liability for all money covered by payment instruments that it sells or issues
Charging hidden fees to either party during a money transmission or transferEnsuring all transaction records include: name of the licensee, street address of the business, date, and names of both parties
Failing to provide consolidated financial statements within 45 days after the end of each fiscal quarter to the superintendent of the AZDFIPaying required fees during the initial or renewal licensure process such as application and annual fee as prescribed in ARS 6-1206
Failing to have balance sheets, income statements, and cash flow statements audited by a certified public accountant
Arizona Money Transmitter Bond Complaints and Claims

Any recipient who experiences damage from a money transmitter breaking licensure laws has the option to file a complaint through the az.gov licensing portal. The AZDFI may investigate the complaint and, if necessary, press disciplinary action against the money transmitter.

If the money transmitter causes financial damage by violating any of the following requirements stated above, the recipient can place a claim on the surety bond.

What Happens if I Get a Bond Claim?

Reach out to Jet immediately and send all relevant information pertaining to your case to Jet. We will conduct an investigation on your behalf and defend you against false claims.

Should the claim be validated, it is Jet’s duty as a surety carrier to provide payment up to the maximum bond limit to those who have been financially damaged. However, the money transmitter will remain liable for their negligence and therefore must compensate the surety company for claims that have been paid out.

Arizona Money Transmitter Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: