The Illinois Division of Financial Institutions regulates and supervises a variety of financial institutions, including money transmitters. A money transmitter is a person who engages in the business of selling or issuing payment instruments, transmitting money, or exchanging payment instruments. A payment instrument includes a check, draft, money order, traveler's check, stored value card, or other instrument.
A license is required to operate as a money transmitter in Illinois including other money transmission services. Licensing requirements inlcude obtaining a surety bond.
The Illinois Division of Financial Institutions is the obligee that requires Illinois money transmitters to obtain a surety bond. The bond is to be for $100,000 or an amount equal to the daily average of outstanding payment instruments for the preceding 12 months or operational history, whichever is shorter, up to a maximum of $2 million. If the bond amount is over $1 million, the applicant may post a bond for $1 million plus a dollar-for-dollar increase in the applicant's net worth above the required net worth as stated below, up to a total amount of $2 million.
|Number of Locations in Illinois||Net Worth Required|
|25 or more||$500,000|
A surety bond is for the benefit of any claimant against the application or licensee with respect to the receipt, handling, transmission, and payment of money by the licensee or authorized seller.
A licensee must maintain the bond and the net worth until five years after is ceases to do business in the state, unless all outstanding payment instruments are eliminated or the provisions under the Revised Uniform Unclaimed Property Act have become operative and are adhered to by the licensee.
The Director may require the filing of a new or supplemental bond if he reasonably determines that the required bond is insecure, deficient in amount, or exhausted in whole or in part.
Money transmitters must be licensed in order to engage in the business of selling or issuing payment instruments, transmitting money, or exchanging payment instruments. Separate licenses are not required for authorized sellers of licensees.
The applicant will need to complete the application found on the National Mortgage Licensing System (NMLS) website. The license authorizes the following activities:
Money transmitter licensing fees:
Illinois Money Transmitter License requirements to be completed in NMLS:
The premium that you pay for an Illinois Money Transmitter or Servicer Surety Bond is dependent on credit and the bond amount required. Personal and business financial statements will be required for the underwriting process.
Prerequisites for licensure include registration with FinCEN and the Illinois Secretary of State.
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