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Can I obtain a money transmitter license in Illinois? What are the requirements?

Yes, you can obtain a money transmitter license in Illinois. Here are the requirements:

License Application Requirements

To obtain a money transmitter license in Illinois, you must submit a license application that contains or is accompanied by the following:

  1. The name of the applicant and the address of the principal place of business of the applicant and the address of all locations and proposed locations of the applicant in this State.
  2. The form of business organization of the applicant.
  3. The name, business and home address, and a chronological summary of the business experience, material litigation history, and felony convictions over the preceding 10 years of the proprietor, partner, officer, director, and controlling person of the applicant.
  4. Financial statements, not more than one year old, prepared in accordance with generally accepted accounting principles and audited by a licensed public accountant or certified public accountant showing the financial condition of the applicant.
  5. Filings of the applicant with the Securities and Exchange Commission or similar foreign governmental entity (English translation), if any.
  6. A list of all other states in which the applicant is licensed as a money transmitter and whether the license of the applicant for those purposes has ever been withdrawn, refused, canceled, or suspended in any other state, with full details.
  7. A list of all money transmitter locations and proposed locations in this State.
  8. A sample of the contract for authorized sellers.
  9. A sample form of the proposed payment instruments to be used in this State.
  10. The name and business address of the clearing banks through which the applicant intends to conduct any business regulated under this Act.
  11. A surety bond as required by Section 30 of this Act.
  12. The applicable fees as required by Section 45 of this Act.
  13. A written consent to service of process as provided by Section 100 of this Act.
  14. A written statement that the applicant is in full compliance with and agrees to continue to fully comply with all state and federal statutes and regulations relating to money laundering.
  15. All additional information the Director considers necessary in order to determine whether or not to issue the applicant a license under this Act.

License Renewal Requirements

To renew a money transmitter license in Illinois, you must submit an application for renewal made in writing and under oath on a form prescribed by the Director. The application for renewal of a license shall contain or be accompanied by the following:

  1. The name of the licensee and the address of the principal place of business of the licensee.
  2. A list of all locations where the licensee is conducting business under its license and a list of all authorized sellers through whom the licensee is conducting business under its license, including the name and business address of each authorized seller.
  3. Audited financial statements covering the past year of operations, prepared in accordance with generally accepted accounting principles, showing the financial condition of the licensee.
  4. A statement of the dollar amount and number of money transmissions and payment instruments sold, issued, exchanged, or transmitted in this State by the licensee and its authorized sellers for the past year.
  5. A statement of the dollar amount of uncompleted money transmissions and payment instruments outstanding or in transit, in this State, as of the most recent quarter available.
  6. The annual license renewal fees and any penalty fees as provided by Section 45 of this Act.
  7. Evidence sufficient to prove to the satisfaction of the Director that the licensee has complied with all requirements under Section 20 relating to its net worth, under Section 30 relating to its surety bond or other security, and under Section 50 relating to permissible investments.
  8. A statement of a change in information provided by the licensee in its application for a license or its previous applications for renewal including, but not limited to, new directors, officers, authorized sellers, or clearing banks and material changes in the operation of the licensee's business.

Surety Bond Requirements

An applicant for a license shall post and a licensee must maintain with the Director a bond or bonds issued by corporations qualified to do business as surety companies in this State. The bond must be in a form satisfactory to the Director and shall run to the State of Illinois for the benefit of any claimant against the applicant or licensee with respect to the receipt, handling, transmission, and payment of money by the licensee or authorized seller in connection with the licensed operations. The amount of the bond required is $50,000 or an amount equal to 1% of all Illinois-based activity, whichever is greater, up to a maximum amount of $2,000,000.

Relevant Definitions

Relevant Regulations