Illinois money transmitters are licensed and regulated by the Illinois Money Transmitter Act of the state’s General Assembly.
The agency charged with the regulation of Illinois money transmitters is the Department of Financial Regulations, which is also this surety bond’s obligee.
As a condition of licensing and filing with the NMLS, you are required to obtain a surety bond.
The Illinois money transmitter bond has a surety bond requirement which is as follows (it has been updated since October 2017):
It is the GREATER amount of EITHER
$100,000 surety bond;
The daily average outstanding instruments for the previous 12 months or operating history, whichever is the shorter time;
Up to a MAXIMUM of $2,000,000 Illinois money transmitter bond.
For amounts that are over $1,000,000, you may post just a $1,000,000 surety bond and then a dollar for dollar increase for net worth as found under Section 20 of the Act, up to $2,000,000.
As a money transmitter, you are engaged in the profession of:
You are dealing with members of the public day in and day out.
Therefore, the purpose of the Illinois money transmitter bond is to protect the Illinois consumer. It is a financial guarantee on their behalf.
The Illinois money transmitter bond protects the people of the state of Illinois from acts of fraud, theft, willful or negligent misrepresentation and malfeasance committed by a money transmitter business.
Such protection extends also to the same wrongful acts committed by owners, employees, and agents of your money transmitter business.
While the bond is a surety, it is at the same time not insurance.
What this means is that should a claim of financial harm be deemed credible and paid from your bond, you are legally obligated to repay the surety in full for all costs and fees in the settlement of that claim.
The premium for the Illinois money transmitter bond represents the price you will pay for its issuance.
The premium will be determined by the amount of the surety bond required, your credit, and solid financial statements provided by you.
Since the bond’s amount can be so large, you will be requested to detailed financial information as part of the application process.
The more information you can provide about personal and business financial statements, the sooner it will take to get your bond.
An audited financial statement, if you have one, may certainly be impressive for underwriting purposes.
Your Illinois money transmitter bond will renew annually.
Bear in mind that a new bond with a new amount will likely be required as the volume of your business fluctuates and the bond amount required will be according to the formula mentioned above.
Filing of your Illinois money transmitter bond is now completed electronically via NMLS.
The page also has a comprehensive checklist of all requirements to be an Illinois money transmitter.
AmeriPro Surety Bonds is a surety bonds-only agency.
We provide license and permit, contractor, court, and fiduciary bonds throughout Illinois.
We also provide surety bonds nationwide.
We thank you for allowing us to work for you towards your money transmitter bond.