Illinois Money Transmitter Bond

Any individual or business that receives money for transmission, sells or issues payment instruments (like money orders), or exchanges foreign currency for compensation in Illinois must obtain this bond. This includes fintech companies, money service businesses, remittance companies, and payment processors. The bond is required to obtain and maintain a money transmitter license from the Illinois Department of Financial and Professional Regulation (IDFPR).

A claim can be filed against the Illinois Money Transmitter Bond when a licensed money transmitter violates provisions of the Illinois Transmitters of Money Act (205 ILCS 658/). Common violations include failure to properly transmit money as agreed upon, mishandling payment instruments, failure to comply with licensing law requirements, or causing financial losses to consumers through non-compliance. The bond protects consumers and ensures money transmitters fulfill their legal and contractual obligations.

The Illinois Money Transmitter Bond amount is tiered based on your money transmission activity in Illinois. The bond amount is calculated as the greater of $50,000 (minimum) or 1% of your licensee's daily average of outstanding payment instruments over the prior 12 months, up to a maximum of $2,000,000. For requirements exceeding $1,000,000, licensees may post a $1,000,000 bond plus a dollar-for-dollar increase in net worth to reach the maximum.