What is an Illinois Money Transmitter Bond?

A quick guide to the money transmitter surety bond in Illinois!

A surety bond is a standard financial guarantee required of every person applying for a money transmitter license in the State of Illinois.

 

Once licensed, the money transmitter must maintain a surety bond with an amount specified by the Illinois Department of Financial Institutions before performing the following services:

  • Receive money for transmission or transmits money
  • Sells or issues payment instruments
  • Exchanges foreign money or currency to US dollar or US dollar money from a foreign government

The licensed money transmitter is obligated to perform the services mentioned above by the Transmitter of Money Act of the State of Illinois.

 

A violation of the provisions of the said Act that is committed by the licensed money transmitter will be a ground for a bond claim.

 

What is the Money Transmitter Bond amount?

The bond amount will vary. It will be based on the money transmitter license applicant or licensee’s daily average of outstanding payment instruments for the previous 12 months.

 

$100,000 – the minimum bond amount

$2,000,000 – the maximum bond amount

 

If the bond amount is greater than $1,000,000, the money transmitter license applicant or licensee will have the option to submit a bond for $1,000,000 with an additional increase in the required net worth of the applicant or licensee.

 

Those who have excellent credit scores will be eligible for a very low bond premium, or just 1% of the bond amount!

 

How can I get a Money Transmitter Bond?

SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your application for this bond HERE!

 

UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:

  • Proof of your financial capability
  • Your business’ history
  • Your credit score

To avoid any delay, make sure that your requirements are complete before submitting them.

 

ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!

 

What are the surety bond conditions?

  • The surety bond agent or company should be authorized to conduct business in the State of Illinois.
  • The surety bond should be made payable to the Illinois Director of the Division of Financial Institutions.
  • The licensed money transmitter is obligated to abide by the provisions of the Transmitter of Money Act of the State of Illinois, as well as the rules and regulations of the Illinois Department of Financial Institutions.
  • If the licensed money transmitter commits a valid violation, the aggrieved party will be eligible to file a claim against the bond.

For your Money Transmitter Bond needs, please feel free to call us at 800-333-7800!