Who needs to register?
Under Illinois statute, all businesses selling or issuing payment instruments, transmitting money, or exchanging, for compensation, payment instruments or different currencies must obtain a money transmitter license with the state.
Who is the regulator?
Illinois Division of Financial Institutions
What are the money transmitter license requirements?
To register as a money transmitter in the state of Illinois requires the following fees and documentation:
- Business organization documents, which vary depending on whether the business is a corporation, partnership, or other structure
- Audited financial statements certified by a licensed public accountant; unaudited balance sheet and statement of operation for most recent quarter certified by a corporate officer
- If a wholly owned subsidiary or able to file consolidated tax returns with parent, company may submit unaudited financial statements for the preceding year and most recent quarter along with the audited financial statements of the parent company
- SEC filings
- List of all other states where the applicant is licensed and the name and address of the respective regulator
- Complete list of all current and proposed money transmitters in state of Illinois
- Sample contract for authorized sellers
- Name and address of clearing banks through which money services business will be conducted
- $100 application fee
- $100 license fee + $10 per location
- $10 service of process fee
- $400 per examination day or part thereof plus reasonable travel expenses
- Written statement acknowledging that the applicant is in full compliance with and agrees to fully comply with state and federal money laundering regulations
- Name, title, and percent stock ownership of every officer, director, or shareholder with over 10% ownership interest
- Business experience, convictions, and material litigation history over past 10 years for every officer, director, or shareholder with over 10% interest
- Appointment of attorney-in-fact for service of process
- Minimum net worth requirements vary depending on the number of locations, ranging from a minimum of $35,000 up to a maximum of $500,000
What are the general bonding requirements?
In Illinois, the bonding requirement for applicants is $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). Requirements may not exceed $2,000,000.
When the bond amount exceeds $1,000,000, the applicant or licensee may post a bond in the amount of $1,000,000 plus a dollar for dollar increase in the net worth of the applicant or licensee over and above the required amount, up to a total amount of $2,000,000.
Transmitters of Money Act
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