205 ILCS 658/3-1

Current through Public Act 103-1056

Section 205 ILCS 658/3-1 - Exemptions

This Act does not apply to:

(1) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this Section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearinghouse transfers, or similar funds transfers.

(2) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission itself, provided to the payor by the payee, if:

(A) there exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the payee's behalf; and

(B) payment for the goods and services is treated as received by the payee upon receipt by the agent so that the payor's obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee.

(3) A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender, and the sender's designated recipient, if the entity:

(A) is properly licensed or exempt from licensing requirements under this Act;

(B) provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction; and

(C) bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender's designated recipient.

(4) The United States or a department, agency, or instrumentality thereof, or its agent.

(5) Money transmission by the United States Postal Service or by an agent of the United States Postal Service.

(6) A State, county, city, or any other governmental agency or governmental subdivision or instrumentality of a State, or its agent.

(7) A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 U.S.C. 3102, as amended or recodified from time to time, corporation organized pursuant to the Bank Service Corporation Act, 12 U.S.C. Sections 1861 through 1867, as amended or recodified from time to time, or corporation organized under the Edge Act, 12 U.S.C. Sections 611 through 633, as amended or recodified from time to time, under the laws of a state or the United States.

(8) Electronic funds transfer of governmental benefits for a federal, State, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or on behalf of a State or governmental subdivision, agency, or instrumentality thereof.

(9) A board of trade designated as a contract market under the federal Commodity Exchange Act, 7 U.S.C. Sections 1 through 25, as amended or recodified from time to time, or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board.

(10) A registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant.

(11) A person registered as a securities broker-dealer under federal or State securities laws to the extent of its operation as such a broker-dealer.

(12) An individual employed by a licensee, authorized delegate, or any person exempted from the licensing requirements of the Act when acting within the scope of employment and under the supervision of the licensee, authorized delegate, or exempted person as an employee and not as an independent contractor.

(13) A person expressly appointed as a third-party service provider to or agent of an entity exempt under paragraph (7) or (16), solely to the extent that:

(A) such service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform; and

(B) the exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser's or holder's money or monetary value by the service provider or agent.

(14) Any other person, transaction, or class of persons or transactions exempted by rule or any other person or transaction exempted by the Secretary's order on a finding that the licensing of the person is not necessary to achieve the purposes of this Act.

(15) Currency exchanges licensed under the Currency Exchange Act to the extent of its operation as such a currency exchange.

(16) An insured depository credit union organized under the laws of the United States or any state of the United States with deposits insured by an insurer approved by the credit union's primary regulator.

205 ILCS 658/3-1

Added by P.A. 103-0991,§ 3-1, eff. 8/9/2024.