Illinois Announces Simplified Licensing Process for Money-Services Businesses

The Illinois Department of Financial and Professional Regulation (IDFPR) is participating in a multi-state licensure compact that will create easier paths to licensure in multiple states for money services businesses (MSBs) and fintech companies that transmit or convert money. MSBs are used by individuals every day to pay bills, purchase items online or send funds to family members and friends domestically and abroad. The first of its kind agreement will bring innovative financial services to consumers at a faster pace, thanks to the compact’s integrated, nationwide licensure approach.

"With this compact, we eliminate the need for money services businesses and innovative startups to jump through the regulatory hoops of having their full application reviewed separately by each state,” said Bryan A. Schneider, IDFPR Secretary. “In the past, this process has proven cumbersome to applicants and their consumers awaiting cutting edge technology. This compact ensures regulatory adherence, while affording consumers more immediate access to an extensive range of financial products.”

Under the compact, if one participating state has reviewed key elements of a company’s operations relating to the company’s application for money transmitter license (IT, cybersecurity, business plan, background check, and compliance with the federal Bank Secrecy Act), the other participating states will accept that state’s findings.

Illinois is among the first to join the multi-state MSB compact. Additional participating states include Georgia, Kansas, Massachusetts, Tennessee, Texas and Washington.

The multi-state MSB compact represents the latest step among state regulators towards an integrated, 50-state system of licensing and supervision for fintechs and potentially for other non-depository institutions.

Companies interested in licensure through this compact should contact Charles Clark, Agency Deputy Director & Director of Consumer Services, Washington State Department of Financial Institutions, at 360-902-0511.