An Illinois Money Transmitter Bond is a type of surety bond that is required by the Illinois Department of Financial and Professional Regulation (IDFPR) for any individual or business that transmits money on behalf of others. The bond protects consumers from financial losses if the money transmitter fails to transmit the money as agreed upon. The bond amount is set by the IDFPR and is based on the money transmitter’s estimated annual il money trans transaction volume. The bond amount must be at least $50,000 and cannot exceed $2 million.
Here are some examples of activities that require an Illinois Money Transmitter License:
- Money transfer services
- Check cashing services
- Prepaid card services
- Currency exchange services
- Virtual currency exchange services
If you are unsure whether or not you need an Illinois Money Transmitter Bond, you should contact the IDFPR at 1-800-868-4654.
In Illinois, the money transmitter license is administered through the Nationwide Mortgage Licensing System (NMLS).
How to get a Illinois Money Transmitter Bond
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. 2
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Illinois Money Transmitter Bond will be shipped to the bond applicant. Once the bond is signed by the principal, it must be uploaded to the NMLS.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
Why Do I Need This Bond?
A surety bond is made to protect the public. In basic terms, it guarantees your business will adhere to all laws and requirements in your industry. In the event your business conducts unlawful acts, a consumer of your services may file a claim on the bond.
Nearly any company that offers payment services requires a money transmitter bond. Due to a history of fraudulence and inaccurate money transmissions, state agencies now require this bond to protect consumers. While this bond does not protect the business owner, it offers proof that your business handles clients’ money responsibly.
How Much Will the Bond Cost?
The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.
Illinois Money Transmitter License Requirements
The Illinois Department of Financial and Professional Regulation (IDFPR) requires money transmitters to obtain a license before they can transmit money on behalf of others. To be eligible for a license, a money transmitter must meet the following requirements:
- Be at least 18 years old.
- Be a resident of the United States or a resident of a Canadian province that has a reciprocal agreement with Illinois.
- Have a good moral character.
- Have a net worth of at least $50,000.
- Have a Illinois Money Transmitter Bond in the amount required by the IDFPR.
- Pass a background check.
In addition to the above requirements, money transmitters must also comply with the following laws and regulations:
- Illinois Money Transmitter Act
- Federal Bank Secrecy Act
- Know Your Customer (KYC) rules
Money transmitters must also maintain certain records and submit reports to the IDFPR on a regular basis.
The application process for an Illinois Money Transmitter License can be complex, so it is important to consult with an attorney or other qualified professional to ensure that you meet all of the requirements and complete the application process correctly.
Here are the steps to apply for an Illinois Money Transmitter License:
- Download the application from the IDFPR website.
- Complete the application and submit it to the IDFPR along with all of the required documentation.
- Pay the application fee.
- Wait for the IDFPR to review your application.
- If your application is approved, the IDFPR will issue you a license.
If you have any questions about the application process, you should contact the IDFPR at 1-800-868-4654.
Learn more about Illinois money transmitter law, and see a checklist for new money transmitter license applications at NMLS.