Article V

(205 ILCS 658/Art. V heading)\nARTICLE V. Money Transmission Licenses\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-1)\nSec. 5-1. License required.\n(a) A person may not engage in the business of money transmission or advertise, solicit, or hold oneself out as providing money transmission unless the person is licensed under this Act.\n(b) Subsection (a) does not apply to:\n(1) A person who is an authorized delegate of a person licensed under this Act acting within the scope of authority conferred by a written contract with the licensee; or\n(2) A person who is exempt pursuant to Section 3-1 and does not engage in money transmission outside the scope of such exemption.\n(c) A license issued under Section 5-5 is not transferable or assignable.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-2)\nSec. 5-2. Consistent State licensing.\n(a) To establish consistent licensing between this State and other states, the Secretary is authorized and encouraged to:\n(1) implement all licensing provisions of this Act in a manner that is consistent with other states that have adopted this Act or multistate licensing processes; and\n(2) participate in nationwide protocols for

nt all licensing provisions of this Act in a manner that is consistent with other states that have adopted this Act or multistate licensing processes; and\n(2) participate in nationwide protocols for licensing cooperation and coordination among state regulators provided that such protocols are consistent with this Act.\n(b) In order to fulfill the purposes of this Act, the Secretary is authorized and encouraged to establish relationships or contracts with NMLS or other entities designated by NMLS to enable the Secretary to:\n(1) collect and maintain records;\n(2) coordinate multistate licensing processes and supervision processes;\n(3) process fees; and\n(4) facilitate communication between this State and licensees or other persons subject to this Act.\n(c) The Secretary is authorized and encouraged to use NMLS for all aspects of licensing in accordance with this Act, including, but not limited to, license applications, applications for acquisitions of control, surety bonds, reporting, criminal history background checks, credit checks, fee processing, and examinations.\n(d) The Secretary is authorized and encouraged to use NMLS forms, processes, and functionalities in accordance

g, criminal history background checks, credit checks, fee processing, and examinations.\n(d) The Secretary is authorized and encouraged to use NMLS forms, processes, and functionalities in accordance with this Act. If NMLS does not provide functionality, forms, or processes for a provision of this Act, the Secretary is authorized and encouraged to strive to implement the requirements in a manner that facilitates uniformity with respect to licensing, supervision, reporting, and regulation of licensees which are licensed in multiple jurisdictions.\n(e) For the purpose of participating in NMLS, the Secretary is authorized to waive or modify, in whole or in part, by rule, regulation or order, any or all of the requirements and to establish new requirements as reasonably necessary to participate in NMLS.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-3)\nSec. 5-3. Application for license.\n(a) Applicants for a license shall apply in a form and in a medium as prescribed by the Secretary. Each such form shall contain content as set forth by rule, regulation, instruction or procedure of the Secretary and may be changed or updated by the Secretary in accordance with applicable law

tary. Each such form shall contain content as set forth by rule, regulation, instruction or procedure of the Secretary and may be changed or updated by the Secretary in accordance with applicable law in order to carry out the purposes of this Act and maintain consistency with NMLS licensing standards and practices. The application must state or contain, as applicable:\n(1) the legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business;\n(2) a list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the 10-year period preceding the submission of the application;\n(3) a description of any money transmission previously provided by the applicant and the money transmission that the applicant seeks to provide in this State;\n(4) a list of the applicant's proposed authorized delegates and the locations in this State where the applicant and its authorized delegates propose to engage in money transmission;\n(5) a list of other states in which the applicant is licensed to engage in money transmission and any license revocations,

icant and its authorized delegates propose to engage in money transmission;\n(5) a list of other states in which the applicant is licensed to engage in money transmission and any license revocations, suspensions, or other disciplinary action taken against the applicant in another state;\n(6) information concerning any bankruptcy or receivership proceedings affecting the licensee or a person in control of a licensee;\n(7) a sample form of contract for authorized delegates, if applicable;\n(8) a sample form of payment instrument or stored value, as applicable;\n(9) the name and address of any federally insured depository financial institution through which the applicant plans to conduct money transmission; and\n(10) any other information the Secretary or NMLS reasonably requires with respect to the applicant.\n(b) If an applicant is a corporation, limited liability company, partnership, or other legal entity, the applicant shall also provide:\n(1) the date of the applicant's incorporation or formation and State or country of incorporation or formation;\n(2) if applicable, a certificate of good standing from the State or country in which the applicant is incorporated or formed;\n(3)

on or formation and State or country of incorporation or formation;\n(2) if applicable, a certificate of good standing from the State or country in which the applicant is incorporated or formed;\n(3) a brief description of the structure or organization of the applicant, including any parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly traded;\n(4) the legal name, any fictitious or trade name, all business and residential addresses, and the employment, as applicable, in the 10-year period preceding the submission of the application of each key individual and person in control of the applicant;\n(5) a list of any criminal convictions and material litigation in which a person in control of the applicant that is not an individual has been involved in the 10-year period preceding the submission of the application;\n(6) a copy of audited financial statements of the applicant for the most recent fiscal year and for the 2-year period preceding the submission of the application or, if determined to be acceptable to the Secretary;\n(7) a certified copy of unaudited financial statements of the applicant for the most recent fiscal quarter;\n(8) if

submission of the application or, if determined to be acceptable to the Secretary;\n(7) a certified copy of unaudited financial statements of the applicant for the most recent fiscal quarter;\n(8) if the applicant is a publicly traded corporation, a copy of the most recent report filed with the United States Securities and Exchange Commission under Section 13 of the federal Securities Exchange Act of 1934, 15 U.S.C. 78m, as amended or recodified from time to time;\n(9) if the applicant is a wholly owned subsidiary of:\n(A) a corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation's most recent report filed under Section 13 of the federal Securities Exchange Act of 1934, 15 U.S.C. 78m, as amended or recodified from time to time; or\n(B) a corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;\n(10) the name and address of the applicant's registered agent in this State; and\n(11) any other information the Secretary reasonably requires

arent corporation's domicile outside the United States;\n(10) the name and address of the applicant's registered agent in this State; and\n(11) any other information the Secretary reasonably requires with respect to the applicant.\nA nonrefundable application fee must accompany an application for a license under this Section in accordance with 38 Ill. Adm. Code 205.35, as amended or recodified from time to time.\n(c) The Secretary may waive one or more requirements of subsections (a) and (b) or permit an applicant to submit other information instead of the required information.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-4)\nSec. 5-4. Information requirements for certain individuals.\n(a) Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and each key individual shall furnish to the Secretary through NMLS the following items:\n(1) The individual's fingerprints for submission to the Federal Bureau of Investigation and the Secretary for purposes of a national criminal history background check unless the person currently resides outside of the United States and has resided outside of the United States for the

on and the Secretary for purposes of a national criminal history background check unless the person currently resides outside of the United States and has resided outside of the United States for the last 10 years.\n(2) Personal history and experience in a form and in a medium prescribed by the Secretary, to obtain the following:\n(A) an independent credit report from a consumer reporting agency unless the individual does not have a social security number, in which case, this requirement shall be waived;\n(B) information related to any criminal convictions or pending charges; and\n(C) information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.\n(b) If the individual has resided outside of the United States at any time in the last 10 years, the individual shall also provide an investigative background report prepared by an independent search firm that meets the following requirements:\n(1) At a minimum, the search firm shall:\n(A) demonstrate that it has sufficient knowledge, resources, and employs accepted and reasonable

ependent search firm that meets the following requirements:\n(1) At a minimum, the search firm shall:\n(A) demonstrate that it has sufficient knowledge, resources, and employs accepted and reasonable methodologies to conduct the research of the background report; and\n(B) not be affiliated with or have an interest with the individual it is researching.\n(2) At a minimum, the investigative background report shall be written in the English language and shall contain the following:\n(A) if available in the individual's current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;\n(B) criminal records information for the past 10 years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;\n(C) employment history;\n(D) media history, including an electronic search of

of law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;\n(C) employment history;\n(D) media history, including an electronic search of national and local publications, wire services, and business applications; and\n(E) financial services-related regulatory history, including, but not limited to, money transmission, securities, banking, insurance, and mortgage related industries.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-5)\nSec. 5-5. Issuance of license.\n(a) When an application for an original license under this Act appears to include all the items and addresses of all of the matters that are required, the application is complete and the Secretary shall promptly notify the applicant in a record of the date on which the application is determined to be complete, and:\n(1) unless extended by the Secretary pursuant to the Secretary's discretion, the Secretary shall approve or deny the application within 120 days after the completion date; or\n(2) if the application is not approved or denied within 120 days after the completion date or any extension thereof:\n(A) the application is approved; and\n(B) the

days after the completion date; or\n(2) if the application is not approved or denied within 120 days after the completion date or any extension thereof:\n(A) the application is approved; and\n(B) the license takes effect as of the first business day after expiration of the 120-day period.\n(b) A determination by the Secretary that an application is complete and is accepted for processing means only that the application, on its face, appears to include all of the items, including the Criminal Background Check response from the FBI, and address all of the matters that are required, and is not an assessment of the substance of the application or of the sufficiency of the information provided.\n(c) When an application is filed and considered complete under this Section, the Secretary shall investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The Secretary may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant must pay. The Secretary shall issue a license to an applicant under this Section if the Secretary finds that all of the following conditions have been

cant, the reasonable cost of which the applicant must pay. The Secretary shall issue a license to an applicant under this Section if the Secretary finds that all of the following conditions have been fulfilled:\n(1) the applicant has complied with Sections 5-3 and 5-4; and\n(2) the financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant and the competence, experience, character, and general fitness of the key individuals and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.\n(d) If an applicant avails itself or is otherwise subject to a multistate licensing process:\n(1) the Secretary is authorized and encouraged to accept the investigation results of a lead investigative state for the purpose of subsection (c) if the lead investigative state has sufficient staffing, expertise, and minimum standards; or\n(2) if Illinois is a lead investigative state, the Secretary is authorized and encouraged to investigate the applicant pursuant to subsection (c) and the timeframes established by agreement through the

) if Illinois is a lead investigative state, the Secretary is authorized and encouraged to investigate the applicant pursuant to subsection (c) and the timeframes established by agreement through the multistate licensing process, however, in no case shall such timeframe be noncompliant with the application period in paragraph (1) of subsection (a).\n(e) The Secretary shall issue a formal written notice of the denial of a license application within 30 days after the decision to deny the application. The Secretary shall set forth the specific reasons for the denial of the application in the notice of denial and serve the applicant, either personally or by certified mail. Service by certified mail shall be deemed completed when the notice is deposited into the U.S. Mail. An applicant whose application is denied by the Secretary under this Section may submit a written request for a hearing that shall include the particular reasons why the applicant believes that the decision to deny the application was incorrect, within 10 days after service of the notice of the denial. If an applicant submits a timely request for a hearing, the Secretary shall schedule a hearing after the request for

plication was incorrect, within 10 days after service of the notice of the denial. If an applicant submits a timely request for a hearing, the Secretary shall schedule a hearing after the request for a hearing unless otherwise agreed to by the parties. The Secretary shall conduct hearings pursuant to this Section and in accordance with 38 Ill. Adm. Code 100, as amended or recodified from time to time.\n(f) The initial license term shall begin on the day that the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-6)\nSec. 5-6. Renewal of license.\n(a) A license under this Act shall be renewed annually.\n(b) An annual renewal fee in accordance with 38 Ill. Adm. Code 205.35 as amended or recodified from time to time shall be paid to the Department. The renewal term shall be for a period of one year and shall begin on January 1 of each year after the initial license term and shall expire on December 31 of the

ime shall be paid to the Department. The renewal term shall be for a period of one year and shall begin on January 1 of each year after the initial license term and shall expire on December 31 of the year the renewal term begins.\n(c) A licensee shall submit a renewal report, in a form and in a medium prescribed by the Secretary by December 1 of each year. The form requires any information deemed necessary by the Secretary to review a renewal application. At a minimum, the renewal report must state or contain a description of each material change in information submitted by the licensee in its original license application which has not been reported to the Secretary and a statement of the dollar amount and number of money transmissions and payment instruments sold, issued, exchanged, or transmitted in this State by the licensee and its authorized delegates for the past 4 completed calendar quarters.\n(d) The Secretary, in his or her discretion, may grant an extension of the renewal date.\n(e) The Secretary is authorized and encouraged to use NMLS to process license renewals if such functionality is consistent with this Section.\n(f) The Secretary shall issue a formal written

al date.\n(e) The Secretary is authorized and encouraged to use NMLS to process license renewals if such functionality is consistent with this Section.\n(f) The Secretary shall issue a formal written notice of the denial of renewal within 30 days after the decision to deny the renewal. The Secretary shall set forth the specific reasons for denying the renewal in the notice of denial and serve the licensee, either personally or by certified mail. Service by certified mail shall be deemed completed when the notice is deposited into the U.S. Mail. A licensee whose renewal is denied by the Secretary under this Section may submit a written request for a hearing that shall include the particular reasons why the licensee believes that the decision to deny the renewal was incorrect within 10 days after service of the notice of the denial. If a licensee submits a timely request for a hearing, the Secretary shall schedule a hearing unless otherwise agreed to by the parties. The Secretary shall conduct hearings pursuant to this Section and in accordance with 38 Ill. Adm. Code 100, as amended or recodified from time to time.

ring unless otherwise agreed to by the parties. The Secretary shall conduct hearings pursuant to this Section and in accordance with 38 Ill. Adm. Code 100, as amended or recodified from time to time. The expiring license shall be deemed to continue in force until 10 days after the service of the notice of denial or, if a timely hearing is requested during that period, until a final order is entered pursuant to a hearing.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-7)\nSec. 5-7. Maintenance of license.\n(a) If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license, the Secretary may suspend or revoke the licensee's license in accordance with the procedures established by this Act or other applicable State law for such suspension or revocation.\n(b) An applicant for a money transmission license must demonstrate that it meets or will meet, and a money transmission licensee must at all times meet, the requirements in Article X of this Act.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-8)\nSec. 5-8.

e that it meets or will meet, and a money transmission licensee must at all times meet, the requirements in Article X of this Act.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-8)\nSec. 5-8. Fees.\n(a) The expenses of administering this Act, including investigations and examinations provided for in this Act, shall be borne by and assessed against entities regulated by this Act. The Department may establish fees by rule, including in the following categories:\n(1) investigation of licensees and license applicant fees;\n(2) examination fees;\n(3) contingent fees; and\n(4) such other categories as may be required to administer this Act.\n(b) The Secretary shall charge and collect fees, which shall be nonrefundable unless otherwise indicated.\n(c) All fees currently assessed in accordance with 38 Ill. Adm. Code 205.35, as amended or recodified from time to time, shall remain in effect. Except for money required to be deposited into the TOMA Consumer Protection Fund pursuant to this Act, all moneys received by the Department shall be deposited into the Financial Institution Fund. Failure to pay any required fee by the due date shall subject the licensee to a penalty fee of $25

s Act, all moneys received by the Department shall be deposited into the Financial Institution Fund. Failure to pay any required fee by the due date shall subject the licensee to a penalty fee of $25 per day and disciplinary action.\n(Source: P.A. 103-991, eff. 8-9-24.)\n(205 ILCS 658/5-9)\nSec. 5-9. Liability of licensees. A licensee is liable for the payment of all moneys covered by payment instruments that it sells or issues in any form in this State through its authorized delegate and all moneys it receives itself or through its authorized delegate for transmission by any means whether or not any instrument is a negotiable instrument under the laws of this State.\n(Source: P.A. 103-991, eff. 8-9-24.)