Uniform Money Transmission Modernization Act (SB3412) Summary

• Replaces the existing Transmitters of Money Act with a modernized framework for regulating money transmission services, including payment instruments, stored value, bill payment services, and payroll processing services in Illinois.

• Establishes licensing requirements administered by the Secretary of Financial and Professional Regulation, with 120-day approval timelines for applications and coordination with multistate licensing processes through NMLS.

• Requires licensees to maintain tangible net worth (minimum $100,000 or 3% of assets), surety bonds ($100,000 to $2,000,000), and permissible investments equal to outstanding money transmission obligations to protect consumer funds.

• Implements prudential standards including timely money transmission (within 3 business days), refund requirements (within 10 days), receipt disclosures, and authorized delegate oversight with trust provisions for customer funds.

• Provides enforcement mechanisms including civil penalties up to $1,000 per violation, license suspension/revocation, and a TOMA Consumer Protection Fund for consumer restitution, with criminal penalties (Class 3 felony) for unlicensed operation or false statements.