Money transmitter bond cost
The Illinois Division of Financial Institutions requires money transmitters to post surety bonds in varying amounts prior to conducting business within the state. The required bond amount is $100,000 or equal to the daily average of outstanding payment instruments for the preceding 12 months or operational history, whichever is shorter. The maximum required bond amount is $2,000,000. If the required bond amount exceeds $1,000,000, the applicant can choose to post the bond plus a dollar-for-dollar increase in the net worth of the applicant up to a maximum amount of $2,000,000.
Current business financials and a personal financial statement are required to produce this bond. Having these documents handy will expedite the bonding process.
Why this bond
According to the Illinois Division of Financial Institutions, any businesses that engage in the selling or issuing of payment instruments, exchange or transmission of money for compensation must post a surety bond.
Illinois money transmitter surety bonds are put in place to ensure that principals (money transmitters) abide by all state laws, rules and regulations while on the job. Prohibited acts outlined in the Illinois Transmitters of Money Act include:
- Selling checks as an agent when that agent is required to be licensed and he or she is not
- Having a person/entity other than a bank, trust company, an agent, a licensee or an agent of a licensee handle transmit or receive money on behalf of a client
- Purposely withholding, deleting, destroying or altering information requested by an examiner or other official of the department
- Making false statements or material misrepresentations to the department
- And more
If the principal fails to conduct ethical and lawful business, the bond protects the state and consumers harmed from financial loss up to the full bond amount.
Money transmitter bond details
Money transmitter bonds in Illinois expire annually on December 31, so your bond premium could be prorated depending on when you buy it. Our team of surety experts works hard to get you bonded according to your specific needs.
Become a money transmitter in Illinois
It is unlawful for any individual to conduct acts of sales regarding checks and other forms of payment without gaining the proper authority to do so. To become licensed in Illinois, applicants must complete the following steps:
- Provide all required business organization documents as well as audited financial statement certified by a licensed public accountant
- Supply a list of all other states where the applicant is licensed and the name and address of the respective regulator
- Pay the $100 application fee and all other required fees ($100 license fee and additional $10 per location)
- Submit a completed application form with all additional required documents
- Provide proof satisfying minimum net worth requirements (ranges from $35,000 to $500,000 depending on number of business locations in IL)
In addition to the state licensing requirements, money transmitters nationwide must register with the Federal Crimes Enforcement Network (FinCEN). To do this, applicants must register online through the Bank Secrecy Act (BSA) E-Filing System.
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