MSB License Regulation in Illinois

Regulator of MSB license in Illinois

• All IL money transmitter service license applications are processed by the Nationwide Multistate Licensing System & Registry (NMLS).
• For new enterprises seeking specifics, the NMLS Resource Center offers an abundance of information.
• IDFPR, the Illinois Department of Financial & Professional Regulation, is responsible for overseeing money transmitter licensees and all industry-related affairs.

Documents required for application:

• Business organization documents, tailored to the specific structure (corporation, partnership, etc.).
• Audited financial statements, certified by a licensed public accountant. Alternatively, unaudited financial statements certified by a corporate officer may suffice for the most recent quarter.
• SEC filings, if applicable.
• A comprehensive list of all states where the applicant is licensed, along with regulator details.
• A complete roster of current and proposed money transmitters in Illinois.
• Sample contract for authorized sellers.
• Information on clearing banks used for money services business transactions.
• Written acknowledgment of compliance with state and federal money laundering regulations.
• Detailed information on every officer, director, or shareholder with over 10% ownership interest, including name, title, stock ownership percentage, business experience, and history of convictions or material litigation over the past decade.
• Appointment of an attorney-in-fact for service of process.

Cost Involved

• Application fee: $100
• License fee: $100, plus $10 per location
• Service of process fee: $10
• Examination fee: $400 per examination day, plus reasonable travel expenses
• Net Worth Requirements:
• Minimum net worth requirements vary based on the number of locations, ranging from $35,000 to a maximum of $500,000.
• Electronically submit a surety bond alongside your application, with the bond amount ranging between $50,000 and $2,000,000.

Process of application

• Here’s a detailed guide on obtaining a Money Transmitter License (MTL) in Illinois
• Register with FinCEN: Prior to applying for an IL license, ensure your registration with FinCEN is complete.
• Illinois Secretary of State Registration: Another essential step is registering your business within the state of Illinois, with further details available on the state’s official website.
• Complete the MU1 Form: Download and fill out the Company Form (MU1) as per provided instructions.
• Document Preparation: Gather and finalize all necessary documents required for submission alongside your application. Utilize the license application checklist specific to Illinois for thorough preparation.
• Illinois MTL Fees: Submit the fee
• Surety bond: Electronically submit a surety bond alongside your application
• Application Submission: Prior to submission, meticulously review all details. Note that the license application fee is non-refundable, requiring repayment if re-application is necessary due to missing documents.
• Await Approval: Anticipate a processing time of six to eight months before receiving notification of approval or rejection for your money transmitter license application in Illinois.