Square Gets Hit With A C&D From The Illinois Dept. of Financial & Professional Regulation

Posted Mar 2, 2013

Square is a popular mobile payments company that has received a cease and desist order from the Illinois Department of Financial & Professional Regulation as found in a document by  Thomas Noyes.  According to a statute in the the Transmitters of Money Act (an Illinois state law), “No person may engage in this State in the business of selling or issuing payment instruments, transmitting money, or exchanging, for compensation, payment instruments or money of the United States government or a foreign government to or from money of another government without first obtaining a license under this Act.”

Supposedly Square needs a license to transmit payments in the state.  “We?ve been in close contact with the Illinois Division of Financial Institutions for several months and are addressing their concerns,” said Square in a statement about the cease and desist.  Square said that they transmit funds, but they do not hold the funds so it should not fall under the jurisdiction.