Who requires it
Illinois Department of Financial and Professional Regulation — Division of Financial Institutions
License & permit · Illinois
Illinois Money Transmitter Bond
Illinois money transmitters licensed under the Money Transmission Modernization Act must maintain security equal to the greater of one hundred thousand dollars or one hundred percent of average daily money transmission liability in Illinois, subject to a two-million-dollar maximum. Section 10-2 of 205 ILCS 658 sets that formula, and IDFPR expects electronic surety filing through NMLS for the 2026 licensing cycle.
Common bond amount
$100,000–$2,000,000
Greater of $100,000 or 100% average daily Illinois MT liability; statutory maximum $2,000,000.
How you file
File electronically through NMLS under the money-transmission act
Renewal
Recalculate with liability; keep continuous for NMLS / IDFPR cycle
Who requires it
Companies holding or seeking an Illinois money transmitter license under IDFPR Division of Financial Institutions. Average daily Illinois money transmission liability drives the amount above the one-hundred-thousand-dollar floor. Confirm whether your activity is in-scope money transmission before relying on another license’s bond.
How much is required
205 ILCS 658/10-2 requires the greater of (1) $100,000 or (2) 100% of the licensee’s average daily money transmission liability in Illinois, not to exceed $2,000,000. IDFPR’s MTMA bond letter explains how the Department expects that calculation to be supported and how electronic bonds are filed.
How to get and file it
Compute average daily Illinois money transmission liability using IDFPR’s MTMA instructions, set the amount at the greater of one hundred thousand dollars or that figure (capped at two million), and arrange an electronic surety bond through NMLS with a surety acceptable to the Department. Recalculate the amount when Illinois liability grows and increase the bond before the Department’s reporting or renewal deadlines. Keep electronic coverage continuous for 2026 and later cycles; a lapse in security can stop money transmission authority.
Cost note
One hundred thousand dollars (or the higher calculated amount up to two million) is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Floor
- $100,000 minimum security
- Liability formula
- 100% of average daily Illinois money transmission liability when higher
- Ceiling
- $2,000,000 maximum under 205 ILCS 658/10-2
- Filing
- Electronic surety through NMLS for the 2026 cycle per IDFPR
Related resources
Frequently asked questions
Is every money transmitter’s bond only $100,000?
No. One hundred thousand dollars is the floor. If one hundred percent of your average daily Illinois money transmission liability is higher, the amount rises with that liability until it reaches the two-million-dollar statutory maximum.
Do I still file a paper bond with IDFPR?
IDFPR’s MTMA bond letter directs electronic NMLS filing for the 2026 cycle. Follow the Department’s current letter and NMLS checklist rather than assuming a paper-only process.
Related Illinois bond guides
Mortgage Broker & Banker Bond
$25,000–$150,000
Illinois residential mortgage brokers and mortgage bankers file a surety bond on the same volume-based schedule in 38 Ill. Adm. Code 1050.490, ranging from twenty-five thousand to one hundred fifty thousand dollars. Exempt independent loan processing entities use a flat fifty-thousand-dollar amount. Bonds for these company licenses are filed electronically through NMLS as IDFPR Residential Finance instructs.
Collection Agency Bond
$25,000
Illinois collection agencies licensed under the Collection Agency Act must maintain a twenty-five-thousand-dollar continuous surety bond under 205 ILCS 740/8. The bond may not be cancelled without at least sixty days’ notice. Debt buyers collecting only accounts they own are outside this bond requirement. The Act remains in force after Senate Bill 2457 removed the former sunset; it was not repealed.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Illinois application
Illinois will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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