Illinois Money Transmitter License – Basic Information
The Illinois money transmitter license is essential for any business or entity that wants to offer its services in the state. Operating without a license is a crime and liable to huge fines and even imprisonment for offending parties.
Who Handles the Licensing for Illinois?
The Nationwide Multistate Licensing System & Registry (NMLS) handles all new license applications for money transmitter services in IL. The NMLS Resource Center provides a wealth of information for new businesses who want to know the details.
IL State Regulator
The Illinois Department of Financial & Professional Regulation (IDFPR) regulates the money transmitter licensees and all other matters pertaining to the industry.
Who Needs an MTL in Illinois?
Any money transmitter offering services in Illinois needs to get a license to operate legally. The state of Illinois defines money transmitters as:
a person who is located in or doing business in this State and who directly or through authorized sellers does any of the following in this State:(205 ILCS 657/) Transmitters of Money Act.
(1) Sells or issues payment instruments.
(2) Engages in the business of receiving money for transmission or transmitting money.
(3) Engages in the business of exchanging, for compensation, money of the United States Government or a foreign government to or from money of another government.
Illinois Money Transmitter License Lookup
You can see your own and other licensed money transmitters on the website for the DFPR.
Illinois Money Transmitter License Cost
The PDF below lists all the costs in detail and also includes our professional charges for assisting you in applying for a money transmitter license in Illinois.
Step by Step Guide to Getting Illinois Money Transmitter License
How to Get a Money Transmitter License in Illinois
- Register with FinCEN
You must be registered with FinCEN before you apply for a license in IL.
- Illinois Secretary of State Registration
This is another pre-requisite for an IL MT license. You must register your business in the state. More information is available on their website.
- Fill the MU1 Form
Download and complete the Company Form
(MU1) and file it according to the details given here.
- Prepare your documents
Complete and gather all the necessary documents that will need to be submitted with your application. The license application checklist for IL is an important resource in preparing everything before you submit your application.
- IL Money transmitter license fee
1. IL New Application Fee: $2,500
2. Investigation Fee: $400. (Payable at the examination that is performed upon the final processing of the application.)
3. Authorized Seller (Delegate) Fee: $10 per location
4. An annual fee of twenty-five cents ($0.25) for each active authorized agent/delegate location reported through NMLS
- Surety bond for Illinois MTL application
A surety bond will need to be submitted electronically with your application. The amount is between $50,000 and $2,000,000
- Submit your application
Check and recheck everything before you submit. The license application fee is non-refundable and will have to be paid again if you need to re-apply after rejection for missing documents.
- Wait to be approved
The usual wait time before you find out whether you were approved or rejected for a money transmitter license is six to eight months.
This page was last updated on August 2, 2023.