Currency Exchange Bond Requirement Revised In Illinois

currency exchange

Currency exchangers in Illinois must adhere to new bond regulations that go into effect on January 1, 2016. With the passing of Senate Bill 1882, professionals must post a $25,000 currency exchange bond per licensed location for their business with a maximum of $350,000 in bond coverage per licensee.

The bill also clarifies that the bond covers liabilities incurred by the licensee on any money orders or on any sums due to a payee or endorsee of a check, draft or money order left with the licensee for collection. The bond also covers any liabilities to the public incurred by the currency exchanger in connection with any services rendered. The bond does not cover money orders issued or liabilities incurred by a currency exchange for its own account or that of its controlling persons.

If a currency exchanger is covered by a blanket bond that covers multiple licensees who are members of a statewide association of exchangers or licensees, they may not be required to post the $25,000 bond. The blanket bond must be issued by an authorized bonding company and must provide between $3,000,000 and $4,000,000 of coverage.

For questions about becoming a licensed currency exchanger in the state, contact the Illinois Department of Financial & Professional Regulation. Contact SuretyBonds.com with questions about becoming bonded in Illinois.

About the Author

Melanie Baravik
Melanie is a senior at the University of Missouri - Columbia studying English with an emphasis in creative writing. She is a member of the marketing department and outreach team for SuretyBonds.com, a leading provider of online bonding for clients nationwide.