Financial Crime World

Commerce Department Issues Guidelines for Foreign Exchange Companies

The Illinois Commerce Department has issued new guidelines to ensure the integrity of foreign exchange transactions. These guidelines outline the rules and regulations governing foreign exchange companies, aiming to promote a fair and transparent industry that protects consumers and maintains public confidence.

Cease and Desist Orders

If it appears that a licensee is violating or failing to comply with the regulations, the Director may direct the company to cease its unlawful practice. The order will require the company to show cause before the Director why the order should not be observed.

Suspension and Revocation of Licenses

The guidelines outline the circumstances under which a license can be suspended or revoked. Specifically:

  • The Director may suspend a license if it is found that the company has violated a provision of the subchapter or any rule issued thereunder.
  • The Director may also suspend a license if any fact or condition exists that would have been grounds for denying an application for a license.

Civil Penalties

The guidelines impose civil penalties on individuals and companies who violate the regulations. These penalties include:

  • A fine of $500 for each violation by any person who violates or fails to comply with any provision of the subchapter.
  • A penalty fee of $10 per day for foreign exchange companies that fail to submit complete and accurate quarterly reports.

Fines and Penalties for Failure to Remit Funds

The guidelines also provide for fines and penalties for failure to remit funds to beneficiaries within 10 days as required. These penalties include:

  • A fine of $50 per violation.
  • Suspension or revocation of the foreign exchange company’s license, or both.

Goal of the Guidelines

The Illinois Commerce Department’s guidelines are designed to ensure that foreign exchange companies operate in a fair and transparent manner, protecting consumers and maintaining public confidence in the industry. By establishing clear rules and regulations, the department aims to promote trust and stability in the foreign exchange market.