Section 120.5  Definitions

 

"Act" means the Currency Exchange Act [205 ILCS 405].

 

"Ambulatory Currency Exchange" means any person, firm, association, partnership, limited liability company or corporation, except banks organized under the laws of this State and national banks organized pursuant to the laws of the United States, engaged in one or both of the businesses, or engaged in performing any one or more of the services authorized by the Act, solely on the premises of the employer whose employees are being served.

 

"Community Currency Exchange" means any person, firm, association, partnership, limited liability company or corporation, except an ambulatory currency exchange as defined in this Section, banks incorporated under the laws of this State and national banks organized pursuant to the laws of the United States, engaged in the business or service of, and providing facilities for, cashing checks, drafts, money orders or any other evidences of money acceptable to the community currency exchange, for a fee or service charge or other consideration, or engaged in the business of selling or issuing money orders under his/her or their or its name, or any other money orders (other than United States Post Office money orders, Postal Telegraph Company money orders, or Western Union Telegraph money orders), or engaged in both such businesses, or engaged in performing any one or more of the services authorized by the Act.

 

"Controlling Person" means an officer, director, or person owning or holding power to vote 10% or more of the outstanding voting securities of a licensee or the power to vote the securities of another controlling person of the licensee. For the purpose of determining the percentage of a licensee controlled by a controlling person, the person's interest shall be combined with the interest of any other person controlled, directly or indirectly, by that person or by a spouse, parent, or child of that person. [205 ILCS 405/1]

 

"Department" means the Department of Financial and Professional Regulation.

 

"Director" means the Director of the Division of Financial Institutions with the authority delegated by the Secretary.

 

"Division" means the Department of Financial and Professional Regulation-Division of Financial Institutions with the authority delegated by the Secretary.

 

"Licensed Location" means the premises at which a licensee is authorized to operate a community currency exchange to offer to the public services, products, or activities under the Act. [205 ILCS 405/1]

 

"Licensee" means any person, firm, association, partnership, limited liability company, or corporation issued one or more licenses by the Secretary under the Act. [205 ILCS 405/1]

 

"Secretary" means the Secretary of the Department of Financial and Professional Regulation.

 

(Source:  Amended at 40 Ill. Reg. 9167, effective August 1, 2016)

 

Section 120.10  Minimum Requirements for Office Records − Community Currency Exchanges

 

Every licensed location must maintain the following records in any medium or format that accurately reproduces original documents or papers:

 

a)         Daily cash sheets (see Section 120.30) for the preceding 90 days.

 

b)         Bank statements.

 

c)         Money order register (see Section 120.50) of money order stating original issue amount.

 

d)         General ledger and supporting journals.

 

e)         Copy of the latest Annual Report filed with the Department.

 

f)         Transmittal record for utility bills, vehicle licenses, certificates of title, vehicle stickers, stored value cards, and any other type of transmittal made for the benefit of a third party.

 

g)         Record of daily transactions.

 

h)         Check register (see Section 120.40).

 

i)          Corporate records.

 

j)          Copies of all contracts and business agreements entered into by the currency exchange.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.20  Minimum Requirements for Office Records − Ambulatory Currency Exchanges

 

Every licensed location must maintain the following records in any medium or format that accurately reproduces original documents or papers:

 

a)         Bank statements and itemized deposit slips.

 

b)         Money order register or carbonized copy of money order.

 

c)         General ledger and support journals.

 

d)         Copy of the latest Annual Report filed with the Department.

 

e)         All corporate records.

 

(Source:  Amended at 41 Ill. Reg. 12387, effective October 6, 2017)

 

Section 120.30  Cash Sheet

 

a)         A cash sheet must be prepared daily for each day's business reflecting all transactions for that day.  A fiscal day may be used.  All items on the cash sheet must be balanced at the end of the day or prior to the opening of the next days business. The cash sheet may be maintained by the licensee in any medium or format that accurately reproduces original documents or papers.

 

b)         The closing cash count must include all cash and cash items.  Cash items include postage stamps and stamped envelopes sold in the currency exchange.

 

c)         The beginning and ending number of money orders issued each day must be recorded on the cash sheet.

 

d)         Returned checks must not be counted as part of the cash on hand.

 

e)         Payment for utility bills and all other company bills must be remitted or transmitted to the respective utility or other company by the currency exchange before the end of the next business day.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.40  Cashed Check Register

 

a)         A check register must be maintained for all checks, drafts, money orders or other evidence of money that the licensed location cashes.

 

b)         The check register must show for each instrument cashed: the maker, the payee, the date of the instrument, its amount and its number.

 

c)         The foregoing check register requirements will not apply to those currency exchanges that maintain electronic copies of all checks, drafts, money orders or other evidence of money, provided that the electronic records are available to the Department upon request and the method of electronic storage is maintained in working order.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.50  Issued Money Order Register

 

A money order register recording the date issued, money order number, amount and date paid, must be kept by each licensed location.  This Section and all other provisions of this Part related to money orders apply to money orders sold under the name of the Currency Exchange, as well as second party money orders.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.60  Money Orders

 

a)         Paid money orders must be filed or searchable in numerical sequence.

 

b)         No licensee shall issue any money order, except in payment of an obligation incurred by the licensee in the usual course of its Currency Exchange business, without concurrently receiving the face amount thereof in cash.  Such cash may be the proceeds of the cashing by the licensee of a check, draft, money order, or other evidence of money.

 

c)         No licensee shall issue any money order for the payment of any debt of obligation of the licensee incurred by it outside of the usual course of its Currency Exchange business nor as evidence of or security for such debt or obligation.

 

d)         Money orders in each series sold by the Exchange must be issued in numerical order.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.70  Checks Written by Exchange

 

All checks issued by the Currency Exchange must be made available at the time of examination to any authorized representative of the Department.

 

(Source:  Amended at 9 Ill. Reg. 1358, effective January 17, 1985)

 

Section 120.80  "NSF" Checks and Items for Collection

 

No licensee shall cash or place for collection any check, draft, money order, or other evidence of money if it has reason to believe or if upon the exercise of reasonable prudence it would find that on the date it is delivered to the licensee there are insufficient funds on deposit with the depository upon which it is drawn for its payment in full.

 

(Source:  Amended at 9 Ill. Reg. 1358, effective January 17, 1985)

 

Section 120.90  Returned Items Record

 

A currency exchange must maintain a trailing 12 log of all returned checks, drafts, money orders or other evidence of money.  The log must include the maker, payee, check number, date of instrument, amount, reason for return, date of return, attempts to collect by the currency exchange, and any fees charged by the currency exchange.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.100  Postdated Checks (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 9167, effective August 1, 2016)

 

Section 120.110  Timely Deposits

 

Each check, draft, money order, or other evidence of money cashed by a licensee shall be deposited or transmitted for deposit within the ordinary course of business no later than the following business day after the instrument has been cashed.  A deposit to an armored-car service satisfies this requirement.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.120  Food Stamps Account (Repealed)

 

(Source:  Repealed at 9 Ill. Reg. 1358, effective January 17, 1985)

 

Section 120.125 Supplemental Nutrition Assistance Program

 

Licensees shall comply with all applicable regulations promulgated by the Secretary of the Illinois Department of Human Services and the Secretary of the United States Department of Agriculture regarding distribution of Supplemental Nutrition Assistance Program benefits and any successor program.

 

(Source:  Added at 36 Ill. Reg. 13851, effective September 7, 2012)

 

Section 120.130  Reconciling Accounts

 

Each licensee must reconcile all Currency Exchange Accounts  with the appropriate accounting records at least once each month.

 

(Source:  Amended at 9 Ill. Reg. 1358, effective January 17, 1985)

 

Section 120.140  Reference Material

 

Each licensed location will ensure its employees have access to an electronic or physical copy of the Act and its implementing rules and regulations at all times.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.150  Annual Report Information

 

Each licensee shall maintain all transaction records necessary to provide the information requested by the Department on its Annual report forms.

 

Section 120.160  Retention of Records

 

In addition to those records required to be retained by Section 17 of the Act, all cash sheets, consumer initiated transactions, and utility transmittal sheets, must be preserved for not less than three years.

 

(Source:  Amended at 45 Ill. Reg. 9947, effective July 26, 2021)

 

Section 120.170  Physical Condition of Exchange Premises (Repealed)

 

(Source:  Repealed at 9 Ill. Reg. 1358, effective January 17, 1985)

 

Section 120.180  Display of Fee Schedules

 

a)         In the case of a community currency exchange, each licensed location must post, at all times, a complete, detailed and unambiguous schedule for all of its fees for the cashing of checks, money orders and other evidence of money; the sale or issuance of money orders; and the rendering of all services authorized by the Act in a conspicuous place on its premises so that it is clearly legible to its customers.  The lettering and numerals on this schedule shall be no less than .5 inch in height.  The format of the schedule must be approved, in writing, by the Secretary.

 

b)         In the case of an ambulatory currency exchange, each licensed location must conspicuously post, in the location it is servicing, a complete, legible, detailed and unambiguous schedule for all of its fees for the cashing of checks, money orders or other evidences of money; the sale or issuance of money orders; and the rendering of all services authorized by the Act.  The format of the schedule must be approved, in writing by the Secretary.

 

(Source:  Amended at 40 Ill. Reg. 9167, effective August 1, 2016)

 

Section 120.190  Continuity of Operations

 

When a Community Currency Exchange intends to cease operations for two or more consecutive business days, written notice shall be sent to this office at least ten (10) days prior to said closing.

 

Section 120.200  Out-of-Town Trips

 

If a licensee will be going out of town and be unavailable for matters relating to the Currency Exchange, all books and records pertaining to the Currency Exchange must be available to the Department for examination purposes.

 

Section 120.210  Bribery and Gratuities

 

No licensee, or employee of a licensee, may, directly or indirectly, give, offer or promise anything of value to any employee of the Department.

 

(Source:  Amended at 36 Ill. Reg. 13851, effective September 7, 2012)

 

Section 120.220  Conviction of Crime

 

If any stockholder, director, officer, owner or partner of a community or ambulatory currency exchange is convicted of a crime under any law for which the crime was punishable by imprisonment in excess of one year under the law under which he or she was convicted, the Secretary may order that he or she divest himself or herself of any interest that he or she may hold in any entity licensed by the Department.

 

(Source:  Amended at 36 Ill. Reg. 13851, effective September 7, 2012)

 

Section 120.230  Ambulatory License Application

 

Every applicant for an ambulatory currency exchange license must specify in the application the location where the service will be provided on the premises, as well as the day, time and type of service to be provided.  Permanent changes cannot be made without written notification to the Secretary.

 

(Source:  Amended at 36 Ill. Reg. 13851, effective September 7, 2012)

 

Section 120.240  Ambulatory Office Records

 

The books and records pertaining to the business of an ambulatory licensee are to be available upon written request to representatives of the Department.  The records are not to be moved from their permanent location unless the Secretary is notified, in writing, of the move.  Removal for accounting or business purposes is allowed.

 

(Source:  Amended at 36 Ill. Reg. 13851, effective September 7, 2012)

 

Section 120.250  Sale of Capital Stock

 

No sale, transfer or assignment of capital stock of a corporate licensee shall be made without first obtaining the consent and approval of the Secretary.  Any person contemplating the acquisition of these shares of stock shall first apply for consent and approval by filing with the Secretary an applicant's questionnaire, together with a personal sworn financial statement, credit report, investigation fee and any other information the Secretary may deem necessary, pursuant to Section 10 of the Act.

 

(Source:  Amended at 36 Ill. Reg. 13851, effective September 7, 2012)

 

Section 120.260  Corporate Officers and Directors

 

a)         Controlling Persons of Licensees

 

1)         The provisions of Sections 4 and 10 of the Act, relating to the qualifications of controlling persons of corporate licensees, shall apply to all officers and directors of corporate licensees without regard to the time of the election or to the designation of the officers or directors.

 

2)         Investigation fees when the officer or director of a licensee or licensed location changes, in whole or in Part, are as follows:

 

A)        $500 if the new officer or director is not current officer or director of a licensee or licensed location; or

 

B)        $300 if the new officer or director is a current officer or director of a licensee or licensed location. (See Section 4 of the Act.)

 

b)         When any corporate licensee elects or otherwise designates any person as an officer or director who is not then a controlling person of the corporate licensee, written notice of the fact of the election or designation of the new officer or director, certified by the secretary of the licensee, shall be promptly given to the Secretary. The new officer or director shall not assume the office to which that new officer or director has been elected or designated until that new officer or director has first complied with the provisions of Sections 4 and 10 of the Act, relating to the qualifications of controlling persons of community currency exchanges and ambulatory currency exchanges.

 

(Source:  Amended at 46 Ill. Reg. 18503, effective November 1, 2022)

 

Section 120.270  Fines, Suspension, or Revocation of License

 

a)         The Director may impose any of the sanctions authorized by Section 15 of the Act if the Division finds that any community or ambulatory currency exchange has violated any of the requirements of the Act or this Part.

 

b)         Violations

When any licensee violates any Section of the Act or this Part, the Department, except as allowed under subsection (c), will take the following steps to assess remedial action:

 

1)         Category of Fines

 

A)        For licensing violations relating to licensure, including, but not limited to, timely and accurate submission of annual renewals and annual reports, the violator may be assessed between $100 and $250;

 

B)        For disclosure violations relating to representations required under the Act, including, but not limited to, posting of license and/or renewal certificates and posting of all fees charged by the licensee, the licensee may be assessed between $250 and $500;

 

C)        For operational violations relating to nonpecuniary business, including, but not limited to, unauthorized additional services and record keeping requirements, the licensee may be assessed between $250 and $1,000; or

 

D)        For pecuniary violations relating to monetary issues, including, but not limited to, minimum fund requirements, anti-money laundering requirements, cash sheet maintenance, check register maintenance, money orders issued in numerical order and rates charged to consumers in excess of those allowed by law, the licensee may be assessed between $500 and $1,000.

 

                        2)         If a licensee commits the same violation or violations within the same category of fines listed in subsection (b)(1) at a licensed location more than once within 3 consecutive examination periods, the Department may assess fines that exceed the categories listed in subsection (b)(1) up to the statutory limit (see 205 ILCS 405/15) or take further remedial measures at the Secretary's discretion (see 205 ILCS 405/15).

 

c)         Corrective Action

 

1)         The Department will allow licensees an opportunity to correct any violation within 15 business days after the Notice for any violation identified in this Section. The licensee shall certify the corrective action to be taken, in writing delivered to the Secretary.  The Secretary may then conduct a follow-up examination within 30 days after the certification.  Except as proved in subsection (c)(2), if the Department deems that the violation has been corrected, the Department may reduce or dismiss the assessed fine or action and the Secretary may assess an examination fee not to exceed $175. Dismissal of an assessed fine through corrective action shall not remove repeat violations (see subsection (b)(2)).

 

2)         Corrective action taken by licensees shall not serve to mitigate any fine or other remedial action if the violation is related to pecuniary issues or is the same as a prior violation within the last 3 consecutive examination periods.

 

d)         Notwithstanding the provisions of subsections (b) and (c), if it is determined that the Secretary has the authority to suspend or revoke a license pursuant to Section 15 of the Act, he or she may issue orders as may be reasonably necessary to correct, eliminate or remedy the situation.

 

(Source:  Amended at 40 Ill. Reg. 9167, effective August 1, 2016)

 

Section 120.280  Cease and Desist

 

The Secretary may issue a cease and desist order to any currency exchange or other person doing business without the license required by Section 2 of the Act when, in the opinion of the Secretary, the currency exchange or other person is violating, or is about to violate, any provision of the Act or this Part or any requirement imposed in writing by the Department.  If it is determined that the Secretary has the authority to suspend or revoke a license pursuant to Section 15 of the Act, he or she may issue orders as may be reasonably necessary to correct, eliminate or remedy the situation.  [205 ILCS 405/29.5]

 

(Source:  Added at 36 Ill. Reg. 13851, effective September 7, 2012)

 

Section 120.290  Hearing Procedures

 

All administrative hearings shall be conducted in accordance with 38 Ill. Adm. Code 100.

 

(Source:  Amended at 46 Ill. Reg. 12507, effective July 8, 2022)