SPRINGFIELD – State Senator Laura Ellman championed a law to enhance and streamline the money transmission process in Illinois by creating a uniform set of rules.

“Illinois consumers need money transmission services that follow clear, standardized regulations and demonstrate consistency across different payment companies and state lines,” said Ellman (D-Naperville). “This law addresses conflicting state law requirements through a transparent set of rules that will work across state lines.”

This law creates the Uniform Money Transmission Modernization Act to modernize regulations for money transmission in Illinois and aims to harmonize state licensing, regulation and supervision of money transmitters across state lines by establishing a single uniform set of supervisory rules. The law also prohibits a person from engaging in money transmission or advertising, soliciting or portraying themselves as offering money transmission services unless they are licensed or qualified for an exemption.

Further, this law lowers the surety bond that a licensee must hold to greater than $100,000 or 100% of the licensee’s average daily money transmission and establishes a safe-harbor provision for providers of payroll processing services who were not previously licensed.

“People using money transmission services need a level of oversight in place to ensure financial business is handled according to established standards,” said Ellman. “By working with financial software specialists to identify regulatory gaps, we are moving closer to a nationwide uniform standard.”

Senate Bill 3412 was signed into law on Friday and goes into effect Jan. 1, 2026.