Bill Text: MS HB1428 | 2025 | Regular Session | Comm Sub
Bill Title: Money Transmission Modernization Act; create and repeal MS Money Transmitters Act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-28 - Title Suff Do Pass Comm Sub [HB1428 Detail]
Download: Mississippi-2025-HB1428-Comm_Sub.html
MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Banking and Financial Services
By: Representative Aguirre
House Bill 1428
(COMMITTEE SUBSTITUTE)
AN ACT TO CREATE NEW SECTION 75-15-101, MISSISSIPPI CODE OF 1972, TO CREATE THE MONEY TRANSMISSION MODERNIZATION ACT AND TO STATE THE PURPOSES OF THE ACT; TO CREATE NEW SECTION 75-15-103, MISSISSIPPI CODE OF 1972, TO DEFINE CERTAIN TERMS; TO CREATE NEW SECTION 75-15-105, MISSISSIPPI CODE OF 1972, TO EXEMPT CERTAIN PARTIES FROM THE PROVISIONS OF THE ACT; TO CREATE NEW SECTION 75-15-107, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COMMISSIONER OF BANKING AND CONSUMER FINANCE TO TAKE CERTAIN ACTIONS TO IMPLEMENT THE ACT; TO REQUIRE CERTAIN INFORMATION RELATING TO LICENSEES TO BE KEPT CONFIDENTIAL BY THE COMMISSIONER; TO AUTHORIZE THE COMMISSIONER TO EXAMINE LICENSEES; TO CREATE NEW SECTION 75-15-109, MISSISSIPPI CODE OF 1972, TO REQUIRE PERSONS ENGAGING IN THE BUSINESS OF MONEY TRANSMISSION TO PROCURE A LICENSE TO ENGAGE IN SUCH BUSINESS; TO PRESCRIBE REQUIREMENTS FOR AN APPLICATION FOR A LICENSE; TO ESTABLISH TIMEFRAMES FOR MAKING A DETERMINATION ON AN APPLICATION FOR A LICENSE; TO REQUIRE THE ANNUAL RENEWAL OF LICENSES; TO CREATE NEW SECTION 75-15-111, MISSISSIPPI CODE OF 1972, TO REQUIRE PERSONS SEEKING TO ACQUIRE CONTROL OF A LICENSEE TO OBTAIN APPROVAL FROM THE COMMISSIONER; TO REQUIRE NOTICE TO BE GIVEN TO THE COMMISSIONER OF CHANGES IN THE KEY PERSONNEL OF A LICENSEE; TO CREATE NEW SECTION 75-15-113, MISSISSIPPI CODE OF 1972, TO REQUIRE CERTAIN REPORTS AND AUDITED FINANCIAL STATEMENTS PREPARED BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT TO BE SUBMITTED TO THE COMMISSIONER; TO CREATE NEW SECTION 75-15-115, MISSISSIPPI CODE OF 1972, TO PRESCRIBE CERTAIN REQUIREMENTS RELATING TO AUTHORIZED DELEGATES; TO CREATE NEW SECTION 75-15-117, MISSISSIPPI CODE OF 1972, TO REQUIRE TIMELY TRANSMISSIONS AND TO ESTABLISH REQUIREMENTS FOR REFUNDS FOR SENDERS; TO CREATE NEW SECTION 75-15-119, MISSISSIPPI CODE OF 1972, TO REQUIRE LICENSEES TO MAINTAIN A MINIMUM NET WORTH AND SECURITY BOND IN PRESCRIBED AMOUNTS; TO ESTABLISH REQUIREMENTS FOR PERMISSIBLE INVESTMENTS MAINTAINED BY A LICENSEE; TO CREATE NEW SECTION 75-15-121, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COMMISSIONER TO SUSPEND OR REVOKE A LICENSE FOR CERTAIN PROHIBITED ACTIONS; TO REQUIRE NOTICE AND A HEARING IN CASES OTHER THAN WHEN A LICENSE IS AUTOMATICALLY REVOKED; TO AUTHORIZE THE ISSUANCE OF A CEASE AND DESIST ORDER FOR VIOLATIONS OF CERTAIN RULES AND REGULATIONS; TO AUTHORIZE THE IMPOSITION OF CIVIL PENALTIES; TO CREATE NEW SECTION 75-15-123, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COMMISSIONER TO EXAMINE LICENSEES AND PERSONS SUSPECTED OF CONDUCTING BUSINESS WITHOUT A LICENSE; TO CREATE NEW SECTION 75-15-125, MISSISSIPPI CODE OF 1972, TO ENCOURAGE CONSIDERATION AMONG STATES ENACTING THE MONEY TRANSMISSION MODERNIZATION ACT; TO ESTABLISH A TRANSITION PERIOD TO NEW REQUIREMENTS ESTABLISHED UNDER THIS ACT FOR CURRENT LICENSEES; TO REPEAL SECTIONS 75-15-1 THROUGH 75-15-35, MISSISSIPPI CODE OF 1972, WHICH ARE THE MISSISSIPPI MONEY TRANSMITTERS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 75-15-101, Mississippi Code of 1972:
75-15-101. Section 1.01. Short Title
. This act may be cited as the Money Transmission Modernization Act.
Section 1.02. Purpose
. This act is designed to replace state money transmission laws formerly codified as Sections 75-15-1 through 75-15-35. It is the intent of the Legislature that the provisions of this act accomplish the following:
(1) Ensure states can coordinate in all areas of regulation, licensing and supervision to eliminate unnecessary regulatory burden and more effectively utilize regulator resources;
(2) Protect the public from financial crime;
(3) Standardize the types of activities that are subject to licensing or otherwise exempt from licensing; and
(4) Modernize safety and soundness requirements to ensure customer funds are protected in an environment that supports innovative and competitive business practices.
SECTION 2. The following shall be codified as Section 75-15-103, Mississippi Code of 1972:
75-15-103. Section 2.01. Definitions
. For purposes of this act, the following definitions shall apply:
(a) "Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement.
(b) "Authorized delegate" means a person a licensee designates to engage in money transmission on behalf of the licensee.
(c) "Average daily money transmission liability" means the amount of the licensee's outstanding money transmission obligations in this state at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time. For purposes of calculating average daily money transmission liability under this act for any licensee required to do so, the given period of time shall be the quarters ending March 31, June 30, September 30, and December 31.
(d) "Bank Secrecy Act" means the Bank Secrecy Act, 31 USC Section 5311, et seq. and its implementing regulations, as amended and recodified from time to time.
(e) "Closed loop stored value" means stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.
(f) "Commissioner" means the Commissioner of Banking and Consumer Finance.
(g) "Control" means:
(i) 1. The power to vote, directly or indirectly, at least twenty-five percent (25%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee;
2. The power to elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; or
3. The power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.
(ii) Rebuttable Presumption of Control.
1. A person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten percent (10%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee.
2. A person presumed to exercise a controlling influence as defined by this paragraph can rebut the presumption of control if the person is a passive investor.
(iii) For purposes of determining the percentage of a person controlled by any other person, the person's interest shall be aggregated with the interest of any other immediate family member, including the person's spouse, parents, children, siblings, mothers- and fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law, and any other person who shares such person's home.
(h) "Department" means the Department of Banking and Consumer Finance.
(i) "Eligible rating" shall mean a credit rating of any of the three (3) highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers such as "plus" or "minus" for S&P, or the equivalent for any other eligible rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or higher by S&P, or the equivalent from any other eligible rating service. Short-term credit ratings are deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent from any other eligible rating service. In the event that ratings differ among eligible rating services, the highest rating shall apply when determining whether a security bears an eligible rating.
(j) "Eligible rating service" shall mean any Nationally Recognized Statistical Rating Organization (NRSRO) as defined by the U.S. Securities and Exchange Commission, and any other organization designated by the commissioner by rule, regulation or order.
(k) "Federally insured depository financial institution" means a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company organized under the laws of the United States or any state of the United States, when such bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company has federally insured deposits.
(l) "In this state" means at a physical location within this state for a transaction requested in person. For a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is "in this state" by relying on other information provided by the person regarding the location of the individual's residential address or a business entity's principal place of business or other physical address location, and any records associated with the person that the provider of money transmission may have that indicate such location, including but not limited to an address associated with an account.
(m) "Individual" means a natural person.
(n) "Key individual" means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director, or trustee.
(o) "Licensee" means a person licensed under this act.
(p) "Material litigation" means litigation, that according to United States generally accepted accounting principles, is significant to a person's financial health and would be required to be disclosed in the person's annual audited financial statements, report to shareholders, or similar records.
(q) "Money" means a medium of exchange that is authorized or adopted by the United States or a foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.
(r) "Monetary value" means a medium of exchange, whether or not redeemable in money.
(s) "Money transmission" means any of the following:
(i) Selling or issuing payment instruments to a person located in this state.
(ii) Selling or issuing stored value to a person located in this state.
(iii) Receiving money or monetary value for transmission from a person located in this state.
(t) "MSB accredited state" means a state agency that is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators Association for money transmission licensing and supervision.
(u) "Multistate licensing process" means any agreement entered into by and among state regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations, or notice and information requirements for a change of key individuals.
(v) "NMLS" means the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and registration of persons in financial services industries.
(w) "Outstanding money transmission obligations" shall be established and extinguished in accordance with applicable state law and shall mean:
(i) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee, or escheated in accordance with applicable abandoned property laws; or
(ii) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender, or escheated in accordance with applicable abandoned property laws.
(iii) For purposes of this paragraph, "in the United States" shall include, to the extent applicable, a person in any state, territory, or possession of the United States; the District of Columbia; the Commonwealth of Puerto Rico; or a U.S. military installation that is located in a foreign country.
(x) "Passive investor" means a person that:
(i) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee;
(ii) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee;
(iii) Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and
1. Attests to (i), (ii), and (iii), in a form and in a medium prescribed by the commissioner; or
2. Commits to the passivity characteristics of (i), (ii), and (iii), in a written document.
(y) "Payment instrument" means a written or electronic check, draft, money order, traveler's check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable. The term does not include stored value or any instrument that: is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; or is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
(z) "Person" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the commissioner.
(aa) "Receiving money for transmission" or "money received for transmission" means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means.
(bb) "Stored value" means monetary value representing a claim against the issuer evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services. The term includes, but is not limited to, "prepaid access" as defined by 31 CFR Section 1010.100, as amended or recodified from time to time. Notwithstanding the foregoing, the term "stored value" does not include a payment instrument or closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
(cc) "Tangible net worth" shall mean the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles.
SECTION 3. The following shall be codified as Section 75-15-105, Mississippi Code of 1972:
75-15-105. Section 3.01. Exemptions
. This act does not apply to:
(a) 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 clearing house transfers, or similar funds transfers.
(b) 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, provided that:
(i) 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;
(ii) The payee holds the agent out to the public as accepting payments for goods or services on the payee's behalf; and
(iii) 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.
(c) 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, provided that the entity:
(i) Is properly licensed or exempt from licensing requirements under this act;
(ii) 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
(iii) 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.
(d) The United States or a department, agency, or instrumentality thereof, or its agent.
(e) Money transmission by the United States Postal Service or by an agent of the United States Postal Service.
(f) A state, county, city, or any other governmental agency or governmental subdivision or instrumentality of a state, or its agent.
(g) 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 USC Section 3102, as amended or recodified from time to time, corporation organized pursuant to the Bank Service Corporation Act, 12 USC Sections 1861-1867, as amended or recodified from time to time, or corporation organized under the Edge Act, 12 USC Sections 611-633, as amended or recodified from time to time, under the laws of a state or the United States.
(h) 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.
(i) A board of trade designated as a contract market under the federal Commodity Exchange Act, 7 USC Sections 1-25, 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.
(j) A registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant.
(k) 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.
(l) 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.
(m) A person expressly appointed as a third party service provider to or agent of an entity exempt under paragraph (g), solely to the extent that:
(i) 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
(ii) 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.
(n) A person exempt by regulation or order if the commissioner finds such exemption to be in the public interest and that the regulation of such person is not necessary for the purposes of this act.
Section 3.02. Authority to Require Demonstration of Exemption
. The commissioner may require that any person claiming to be exempt from licensing pursuant to Section 3.01 provide information and documentation to the commissioner demonstrating that it qualifies for any claimed exemption.
SECTION 4. The following shall be codified as Section 75-15-107, Mississippi Code of 1972:
75-15-107. Section 4.01. Implementation
. (a) In order to carry out the purposes of this act, the commissioner may, subject to the provisions of Section 4.02(a) and (b):
(1) Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations in order to improve efficiencies and reduce regulatory burden by standardizing methods or procedures, and sharing resources, records or related information obtained under this act;
(2) Use, hire, contract, or employ analytical systems, methods, or software to examine or investigate any person subject to this act.
(3) Accept, from other state or federal government agencies or officials, licensing, examination, or investigation reports made by such other state or federal government agencies or officials; and
(4) Accept audit reports made by an independent certified public accountant or other qualified third-party auditor for an applicant or licensee and incorporate the audit report in any report of examination or investigation.
(b) The commissioner shall have the broad administrative authority to administer, interpret and enforce this act, and promulgate rules or regulations implementing this act and to recover the cost of administering and enforcing this act by imposing and collecting proportionate and equitable fees and costs associated with applications, examinations, investigations, and other actions required to achieve the purpose of this act.
. (a) Except as otherwise provided in Section 4.02(b), all information or reports obtained by the commissioner from an applicant, licensee, or authorized delegate, and all information contained in or related to an examination, investigation, operating report, or condition report prepared by, on behalf of, or for the use of the commissioner, or financial statements, balance sheets, or authorized delegate information, are confidential and are not subject to disclosure under this state's public records law.
(b) The commissioner may disclose information not otherwise subject to disclosure under Section 4.02(a) to representatives of state or federal agencies who promise in a record that they will maintain the confidentiality of the information or where the commissioner finds that the release is necessary for the protection and interest of the public in accordance with state public records law.
(c) This Section 4.02 does not prohibit the commissioner from disclosing to the public a list of all licensees or the aggregated financial or transactional data concerning those licensees.
(d) Information contained in the records of the department that is not confidential and may be made available to the public either on the department's website, upon receipt by the department of a written request, or in NMLS shall include:
(1) The name, business address, telephone number, and unique identifier of a licensee;
(2) The business address of a licensee's registered agent for service;
(3) The name, business address, and telephone number of all authorized delegates;
(4) The terms of or a copy of any bond filed by a licensee, provided that confidential information, including, but not limited to, prices and fees for such bond is redacted;
(5) Copies of any non-confidential final orders of the department relating to any violation of this act or regulations implementing this act; and
(e) Imposition of an administrative fine or penalty under this act.
. (a) The commissioner may conduct an annual examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this act or by a rule or regulation adopted or order issued under this act at any time or times the commissioner deems proper to administer and enforce this act, regulations implementing this act, and other applicable law, including the Bank Secrecy Act and the USA PATRIOT ACT. The commissioner may:
(1) Conduct an examination either on-site or off-site as the commissioner may require;
(2) Conduct an examination in conjunction with an examination conducted by representatives of other state agencies or agencies of another state or of the federal government;
(3) Accept the examination report of another state agency or an agency of another state or of the federal government, or a report prepared by an independent accounting firm, which on being accepted is considered for all purposes as an official report of the commissioner; and
(4) Summon and examine under oath a key individual or employee of a licensee or authorized delegate and require the person to produce records regarding any matter related to the condition and business of the licensee or authorized delegate.
(b) A licensee or authorized delegate shall provide, and the commissioner shall have full and complete access to, all records the commissioner may require to conduct a complete examination. The records must be provided at the location and in the format specified by the commissioner, provided, the commissioner may utilize multistate record production standards and examination procedures when such standards will reasonably achieve the requirements of this Section 4.03(b). The refusal of access to such records by a licensee shall be cause for revocation of its license.
(c) Unless otherwise directed by the commissioner, a licensee shall pay all costs actually incurred in connection with an examination of the licensee or the licensee's authorized delegates.
Section 4.04. Networked Supervision
. (a) To efficiently and effectively administer and enforce this act and to minimize regulatory burden, the commissioner is authorized and encouraged to participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank Supervisors, Money Transmitter Regulators Association, and affiliates and successors thereof for all licensees that hold licenses in this state and other states. As a participant in multistate supervision, the commissioner will:
(1) Cooperate, coordinate, and share information with other state and federal regulators in accordance with Section 4.02 of this act;
(2) Enter into written cooperation, coordination, or information-sharing contracts or agreements with organizations the membership of which is made up of state or federal governmental agencies; and
(3) Cooperate, coordinate, and share information with organizations the membership of which is made up of state or federal governmental agencies, provided that the organizations agree in writing to maintain the confidentiality and security of the shared information in accordance with Section 4.02 of this section.
(b) The commissioner may not waive, and nothing in this Section 4.04 constitutes a waiver of, the commissioner's authority to conduct an examination or investigation or otherwise take independent action authorized by this act or a rule or regulation adopted, or order issued under this act to enforce compliance with applicable state or federal law.
(c) A joint examination or investigation, or acceptance of an examination or investigation report, does not waive an examination assessment provided for in this act.
Section 4.05. Relationship to Federal Law
(b) In the event of any inconsistencies between this act and a federal law that governs pursuant to Section 4.05(a), the commissioner may provide interpretive guidance that:
(1) Identifies the inconsistency; and
(2) Identifies the appropriate means of compliance with federal law.
SECTION 5. The following shall be codified as Section 75-15-109, Mississippi Code of 1972:
75-15-109. Section 5.01. License Required
(b) Section 5.01(a) does not apply to:
(1) A person that is an authorized delegate of a person licensed under this act acting within the scope of authority conferred by a written contract with the licensee; or
(2) A person that is exempt pursuant to Section 3.01 of Section 75-15-105 and does not engage in money transmission outside the scope of such exemption.
(c) A license issued under Section 5.05 is not transferable or assignable.
Section 5.02. Consistent State Licensing
. (a) To establish consistent licensing between this state and other states, the commissioner is authorized and encouraged to:
(1) Implement all licensing provisions of this act in a manner that is consistent with other states that have adopted this act or multistate licensing processes; and
(2) Participate in nationwide protocols for licensing cooperation and coordination among state regulators provided that such protocols are consistent with this act.
(b) In order to fulfill the purposes of this act, the commissioner is authorized and encouraged to establish relationships or contracts with NMLS or other entities designated by NMLS to enable the commissioner to:
(i) Collect and maintain records;
(ii) Coordinate multistate licensing processes and supervision processes;
(iii) Process fees; and
(iv) Facilitate communication between state and licensees or other persons subject to this act.
(c) The commissioner is authorized and encouraged to utilize NMLS for all aspects of licensing in accordance with this act, including but not limited to, license applications, applications for acquisitions of control, surety bonds, reporting, criminal history background checks, credit checks, fee processing, and examinations.
(d) The commissioner is authorized and encouraged to utilize NMLS forms, processes, and functionalities in accordance with this act. In the event NMLS does not provide functionality, forms, or processes for a provision of this act, the commissioner is authorized and encouraged to strive to implement the requirements in a manner that facilitates uniformity with respect to licensing, supervision, reporting, and regulation of licensees which are licensed in multiple jurisdictions.
(e) Waive or Modify Requirements. For the purpose of participating in the Nationwide Multistate Licensing System and Registry, the commissioner is authorized to waive or modify, in whole or in part, by rule, regulation or order, any or all of the requirements and to establish new requirements as necessary to participate in the Nationwide Multistate Licensing System and Registry.
Section 5.03. Application for License
. (a) Applicants for a license shall apply in a form and in a medium as prescribed by the commissioner. Each such form shall contain content as set forth by rule, regulation, instruction or procedure of the commissioner and may be changed or updated by the commissioner in accordance with applicable law in order to carry out the purposes of this act and maintain consistency with NMLS licensing standards and practices. The application must state or contain, as applicable:
(1) The legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business;
(2) A list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the ten (10) year period next preceding the submission of the application;
(3) A description of any money transmission previously provided by the applicant and the money transmission that the applicant seeks to provide in this state;
(4) A list of the applicant's proposed authorized delegates and the locations in this state where the applicant and its authorized delegates propose to engage in money transmission;
(5) A list of other states in which the applicant is licensed to engage in money transmission and any license revocations, suspensions, or other disciplinary action taken against the applicant in another state;
(6) Information concerning any bankruptcy or receivership proceedings affecting the licensee or a person in control of a licensee;
(7) A sample form of contract for authorized delegates, if applicable;
(8) A sample form of payment instrument or stored value, as applicable;
(9) The name and address of any federally insured depository financial institution through which the applicant plans to conduct money transmission; and
(10) Any other information the commissioner or NMLS requires with respect to the applicant.
(b) If an applicant is a corporation, limited liability company, partnership, or other legal entity, the applicant shall also provide:
(1) The date of the applicant's incorporation or formation and state or country of incorporation or formation;
(2) If applicable, a certificate of good standing from the state or country in which the applicant is incorporated or formed;
(3) A brief description of the structure or organization of the applicant, including any parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly traded;
(4) The legal name, any fictitious or trade name, all business and residential addresses, and the employment, as applicable, in the ten (10) year period next preceding the submission of the application of each key individual and person in control of the applicant;
(5) A list of any criminal convictions and material litigation in which a person in control of the applicant that is not an individual has been involved in the 10-year period preceding the submission of the application;
(6) A copy of audited financial statements of the applicant for the most recent fiscal year and for the two-year period next preceding the submission of the application
(7) A certified copy of unaudited financial statements of the applicant for the most recent fiscal quarter;
(8) If the applicant is a publicly traded corporation, a copy of the most recent report filed with the United States Securities and Exchange Commission under Section 13 of the federal Securities Exchange Act of 1934, 15 USC Section 78m, as amended or recodified from time to time;
(9) If the applicant is a wholly owned subsidiary of:
(A) A corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation's most recent report filed under Section 13 of the U.S. Securities Exchange Act of 1934, 15 USC Section 78m, as amended or recodified from time to time; or
(B) A corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;
(10) The name and address of the applicant's registered agent in this state; and
(11) Any other information the commissioner requires with respect to the applicant.
(c) A nonrefundable license fee of One Thousand Five Hundred Dollars ($1,500.00) must accompany an application for a license under this Section 5.03. However, beginning with calendar year 2025 and for each subsequent calendar year, on or before July 1 of the following year, the Mississippi Department of Banking and Consumer Finance will issue a memo authorizing a new license fee under this section. The new amount will be calculated by applying any increase or decrease in the United States Bureau of Labor Statistics Consumer Price Index for All Urban Consumers (CPI-U) for the previous calendar year to the previous fee amount and rounding that amount upward to the nearest One Hundred Dollar ($100.00) increment.
(d) The commissioner may waive one or more requirements of Sections 5.03(a) and (b) or permit an applicant to submit other information in lieu of the required information.
Section 5.04. Information Requirements for Certain Individuals
. (a) Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and each key individual shall furnish to the commissioner through NMLS the following items:
(1) The individual's fingerprints for submission to the Federal Bureau of Investigation and the commissioner for purposes of a national criminal history background check unless the person currently resides outside of the United States and has resided outside of the United States for the last ten (10) years.
(2) Personal history and experience in a form and in a medium prescribed by the commissioner, to obtain the following:
(A) An independent credit report from a consumer reporting agency unless the individual does not have a Social Security number, in which case, this requirement shall be waived;
(B) Information related to any criminal convictions or pending charges; provided an applicant shall not have been convicted of a felony in any jurisdiction or a misdemeanor of fraud, theft, forgery, bribery, embezzlement, or making a fraudulent or false statement in any jurisdiction; and
(C) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.
(b) If the individual has resided outside of the United States at any time in the last ten (10) years, the individual shall also provide an investigative background report prepared by an independent search firm that meets the following requirements:
(1) At a minimum, the search firm shall:
(A) Demonstrate that it has sufficient knowledge, resources, and employs accepted and reasonable methodologies to conduct the research of the background report; and
(B) Not be affiliated with or have an interest with the individual it is researching.
(2) At a minimum, the investigative background report shall be written in the English language and shall contain the following:
(A) If available in the individual's current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;
(B) Criminal records information for the past ten (10) years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;
(C) Employment history;
(D) Media history, including an electronic search of national and local publications, wire services, and business applications; and
(E) Financial services-related regulatory history, including, but not limited to, money transmission, securities, banking, insurance, and mortgage-related industries.
Section 5.05. Issuance of License. (a) When an application for an original license under this act appears to include all the items and addresses all of the matters that are required, the application is complete and the commissioner shall promptly notify the applicant in a record of the date on which the application is determined to be complete, and:
(2) If the application is not approved or denied within one hundred twenty (120) days after the completion date:
(A) The application is approved; and
(B) The license takes effect as of the first business day after expiration of the one hundred twenty (120) day period.
(C) The commissioner may for good cause extend the application period.
(b) A determination by the commissioner that an application is complete and is accepted for processing means only that the application, on its face, appears to include all of the items, including the Criminal Background Check response from the FBI, and address all of the matters that are required, and is not an assessment of the substance of the application or of the sufficiency of the information provided.
(c) When an application is filed and considered complete under this Section 5.05, the commissioner shall investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The commissioner may conduct an on-site investigation of the applicant, the cost of which the applicant must pay. The commissioner shall issue a license to an applicant under this Section 5.05 if the commissioner finds that all of the following conditions have been fulfilled:
(1) The applicant has complied with Sections 5.03 and 5.04; and
(2) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and the competence, experience, character, and general fitness of the key individuals and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.
(d) If an applicant avails itself or is otherwise subject to a multistate licensing process:
(1) The commissioner is authorized and encouraged to accept the investigation results of a lead investigative state for the purpose of Section 5.05(c) if the lead investigative state has sufficient staffing, expertise, and minimum standards; or
(2) If Mississippi is a lead investigative state, the commissioner is authorized and encouraged to investigate the applicant pursuant to Section 5.05(c) and the timeframes established by agreement through the multistate licensing process, provided however, that in no case shall such timeframe be noncompliant with the application period in Section 5.05(a)(1).
(e) The commissioner shall issue a formal written notice of the denial of a license application. The commissioner shall set forth in the notice of denial the specific reasons for the denial of the application. An applicant whose application is denied by the commissioner under this Section 5.05(e) may appeal within thirty (30) days after receipt of the written notice of the denial. Such appeal shall be to the Chancery Court of the First Judicial District of Hinds County, Mississippi.
(f) The initial license term shall begin on the day the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.
Section 5.06. Renewal of License
. (a) A license under this act shall be renewed annually.
(1) An annual renewal fee of Eight Hundred Dollars ($800.00) plus One Hundred Dollars ($100.00) for each location in excess of one (1) in Mississippi through which the licensee plans to conduct money transmission during the license year for which the feed is paid, provided that in no event shall the annual renewal fee exceed Five Thousand Eight Hundred Dollars ($5,800.00). The renewal fee shall be paid no more than sixty (60) days before the license expiration.
(2) The renewal term shall be for a period of one (1) year and shall begin on January 1 of each year after the initial license term and shall expire on December 31 of the year the renewal term begins.
(b) A licensee shall submit a renewal report with the renewal fee, in a form and in a medium prescribed by the commissioner. The renewal report must state or contain a description of each material change in information submitted by the licensee in its original license application which has not been reported to the commissioner.
(c) The commissioner for good cause may grant an extension of the renewal date.
(d) The commissioner is authorized and encouraged to utilize NMLS to process license renewals provided that such functionality is consistent with this Section 5.06.
Section 5.07. Maintenance of License
. (a) If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license, the commissioner may suspend or revoke the licensee's license in accordance with the procedures established by this act or other applicable state law for such suspension or revocation.
(b) An applicant for a money transmission license must demonstrate that it meets or will meet, and a money transmission licensee must at all times meet, the requirements in Sections 10.01, 10.02, and 10.03 of Section 75-15-119.
SECTION 6. The following shall be codified as Section 75-15-111, Mississippi Code of 1972:
75-15-111. Section 6.01. Acquisition of Control
. (a) Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall obtain the written approval of the commissioner prior to acquiring control.
(b) A person, or group of persons acting in concert, seeking to acquire control of a licensee shall, in cooperation with the licensee:
(1) Submit an application in a form and in a medium prescribed by the commissioner; and
(2) Submit a nonrefundable fee as required under Section 5.03(c) of Section 75-15-109 with the request for approval.
(c) Upon request, the commissioner may permit a licensee or the person, or group of persons acting in concert, to submit some or all information required by the commissioner pursuant to Section 6.01(b)(1) without using NMLS.
(d) The application required by Section 6.01(b)(1) shall include information required by Section 5.04 of Section 75-15-109 for any new key individuals that have not previously completed the requirements of Section 5.04 of Section 75-15-109 for a licensee.
(e) When an application for acquisition of control under this Section 6.01 appears to include all the items and address all of the matters that are required, the application shall be considered complete, and the commissioner shall promptly notify the applicant in a record of the date on which the application was determined to be complete and:
(1) The commissioner shall approve or deny the application within sixty (60) days after the completion date; or
(2) If the application is not approved or denied within sixty (60) days after the completion date:
(A) The application is approved; and
(B) The person, or group of persons acting in concert, are not prohibited from acquiring control.
(3) The commissioner may for good cause extend the application period.
(f) A determination by the commissioner that an application is complete and is accepted for processing means only that the application, on its face, appears to include all of the items and address all of the matters that are required, and is not an assessment of the substance of the application or of the sufficiency of the information provided.
(g) When an application is filed and considered complete under Section 6.01(e), the commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control. The commissioner shall approve an acquisition of control pursuant to this Section 6.01 if the commissioner finds that all of the following conditions have been fulfilled:
(1) The requirements of subsections (b) and (d) have been met, as applicable; and
(2) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control; and the competence, experience, character, and general fitness of the key individuals and persons that would be in control of the licensee after the acquisition of control indicate that it is in the interest of the public to permit the person, or group of persons acting in concert, to control the licensee.
(h) If an applicant avails itself or is otherwise subject to a multistate licensing process:
(1) The commissioner is authorized and encouraged to accept the investigation results of a lead investigative state for the purpose of Section 6.01(g) if the lead investigative state has sufficient staffing, expertise, and minimum standards; or
(2) If Mississippi is a lead investigative state, the commissioner is authorized and encouraged to investigate the applicant pursuant to Section 6.01(g) and the timeframes established by agreement through the multistate licensing process.
(i) The commissioner shall issue a formal written notice of the denial of an application to acquire control. The commissioner shall set forth in the notice of denial the specific reasons for the denial of the application. An applicant whose application is denied by the commissioner under this Section 6.01(i) may appeal within thirty (30) days after receipt of the written notice of the denial. Such appeal shall be to the Chancery Court of the First Judicial District of Hinds County, Mississippi.
(j) The requirements of Section 6.01(a) and (b) do not apply to any of the following:
(1) A person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in control of a licensee;
(2) A person that acquires control of a licensee by devise or descent;
(3) A person that acquires control of a licensee as a personal representative, custodian, guardian, conservator, or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law;
(4) A person that is exempt under Section 3.01(g) of Section 75-15-105;
(5) A person that the commissioner determines is not subject to Section 6.01(a) based on the public interest;
(6) A public offering of securities of a licensee or a person in control of a licensee; or
(7) An internal reorganization of a person in control of the licensee where the ultimate person in control of the licensee remains the same.
(k) Persons in Sections 6.01(j)(2), (3), (4), (6), and (7) in cooperation with the licensee shall notify the commissioner within fifteen (15) days after the acquisition of control.
(l) Streamlined Acquisition of Control
(1) The requirements of Section 6.01(a) and (b) do not apply to a person that has complied with and received approval to engage in money transmission under this act or was identified as a person in control in a prior application filed with and approved by the commissioner or by an MSB accredited state pursuant to a multistate licensing process, provided that:
(A) The person has not had a license revoked or suspended or controlled a licensee that has had a license revoked or suspended while the person was in control of the licensee in the previous five (5) years;
(B) If the person is a licensee, the person is well managed and has received at least a satisfactory rating for compliance at its most recent examination by an MSB accredited state if such rating was given;
(C) The licensee to be acquired is projected to meet the requirements of Sections 10.01, 10.02, and 10.03 of Section 75-15-119 after the acquisition of control is completed, and if the person acquiring control is a licensee, that licensee is also projected to meet the requirements of Sections 10.01, 10.02, and 10.03 of Section 75-15-119 after the acquisition of control is completed;
(D) The licensee to be acquired will not implement any material changes to its business plan as a result of the acquisition of control, and if the person acquiring control is a licensee, that licensee also will not implement any material changes to its business plan as a result of the acquisition of control; and
(E) The person provides notice of the acquisition in cooperation with the licensee and attests to Section 6.01(k)(1)(A), (B), (C), and (D) in a form and in a medium prescribed by the commissioner.
(2) If the notice is not disapproved within thirty (30) days after the date on which the notice was determined to be complete, the notice is deemed approved.
(m) Before filing an application for approval to acquire control of a licensee a person may request in writing a determination from the commissioner as to whether the person would be considered a person in control of a licensee upon consummation of a proposed transaction. If the commissioner determines that the person would not be a person in control of a licensee, the proposed person and transaction is not subject to the requirements of Section 6.01(a) and (b).
(n) If a multistate licensing process includes a determination pursuant to Section 6.01(m) and an applicant avails itself or is otherwise subject to the multistate licensing process:
(2) If state is a lead investigative state, the commissioner is authorized and encouraged to investigate the applicant pursuant to Section 6.01(m) and the timeframes established by agreement through the multistate licensing process,
Section 6.02. Notice and Information Requirements for a Change of Key Individuals
. (a) A licensee adding or replacing any key individual shall:
(1) Provide notice in a manner prescribed by the commissioner within fifteen (15) days after the effective date of the key individual's appointment; and
(2) Provide information as required by Section 5.04 of Section 75-15-109 within forty-five (45) days of the effective date.
(b) Within ninety (90) days of the date on which the notice provided pursuant to Section 6.02(a) was determined to be complete, the commissioner may issue a notice of disapproval of a key individual if the competence, experience, character, or integrity of the individual would not be in the best interests of the public or the customers of the licensee to permit the individual to be a key individual of such licensee.
(c) A notice of disapproval shall contain a statement of the basis for disapproval and shall be sent to the licensee and the disapproved individual. A licensee may appeal a notice of disapproval within thirty (30) days after receipt of such notice of disapproval. Such appeal shall be to the Chancery Court of the First Judicial District of Hinds County, Mississippi.
(d) If the notice provided pursuant to Section 6.02(a) is not disapproved within ninety (90) days after the date on which the notice was determined to be complete, the key individual is deemed approved.
(e) If a multistate licensing process includes a key individual notice review and disapproval process pursuant to Section 6.02 and the licensee avails itself or is otherwise subject to the multistate licensing process:
(1) The commissioner is authorized and encouraged to accept the determination of another state if the investigating state has sufficient staffing, expertise, and minimum standards for the purpose of Section 6.02; or
(2) If Mississippi is a lead investigative state, the commissioner is authorized and encouraged to investigate the applicant pursuant to Section 6.02(b) and the timeframes established by agreement through the multistate licensing process.
SECTION 7. The following shall be codified as Section 75-15-113, Mississippi Code of 1972:
75-15-113. Section 7.01. Report of Condition. (a) Each licensee shall submit a report of condition (i.e. call report) within forty-five (45) days of the end of the calendar quarter, or within any extended time as the commissioner may prescribe.
(b) The report of condition shall include:
(1) Financial information at the licensee level;
(2) Nationwide and state-specific money transmission transaction information in every jurisdiction in the United States where the licensee is licensed to engage in money transmission;
(3) Permissible investments report;
(4) Transaction destination country reporting for money received for transmission, if applicable; and
(5) Any other information the commissioner requires with respect to the licensee. The commissioner is authorized and encouraged to utilize NMLS for the submission of the report required by this Section 7.01(a) and is authorized to change or update as necessary the requirements of this Section 7.01 to carry out the purposes of this act and maintain consistency with NMLS reporting.
(c) The information required by Section 7.01(b)(4) shall only be included in a report of condition submitted within forty-five (45) days of the end of the fourth calendar quarter.
Section 7.02. Audited Financials. (a) Each licensee shall, within ninety (90) days after the end of each fiscal year, or within any extended time as the commissioner may prescribe, file with the commissioner:
(1) An audited financial statement of the licensee for the fiscal year prepared in accordance with United States generally accepted accounting principles; and
(2) Any other information as the commissioner may require.
(b) The audited financial statements shall be prepared by an independent certified public accountant or independent public accountant who is satisfactory to the commissioner;
(c) The audited financial statements shall include or be accompanied by a certificate of opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the commissioner. If the certificate or opinion is qualified, the commissioner may order the licensee to take any action as the commissioner may find necessary to enable the independent or certified public accountant or independent public accountant to remove the qualification.
Section 7.03. Authorized Delegate Reporting. (a) Each licensee shall submit a report of authorized delegates within forty-five (45) days of the end of the calendar quarter. The commissioner is authorized and encouraged to utilize NMLS for the submission of the report required by this Section 7.03(a) provided that such functionality is consistent with the requirements of this Section 7.03. Such utilization shall include the NMLS Uniform Authorized Agent Reporting (UAAR) process, or such other similar process as designated by NMLS.
(b) The authorized delegate report shall include, at a minimum, each authorized delegate's:
(1) Company legal name;
(2) Taxpayer employer identification number;
(3) Principal provider identifier;
(4) Physical address;
(5) Mailing address;
(6) Any business conducted in other states;
(7) Any fictitious or trade name;
(8) Contact person name, phone number, and email;
(9) Start date as licensee's authorized delegate;
(10) End date acting as licensee's authorized delegate, if applicable; and
(11) Any other information the commissioner requires with respect to the authorized delegate.
Section 7.04. Reports of Certain Events. (a) A licensee shall file a report with the commissioner within one (1) business day after the licensee has reason to know of the occurrence of any of the following events:
(1) The filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 USC Section 101-110, as amended or recodified from time to time, for bankruptcy or reorganization;
(2) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors; or
(3) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed.
(b) A licensee shall file a report with the commissioner within three (3) business days after the licensee has reason to know of the occurrence of any of the following events:
(1) A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony; or
(2) A charge or conviction of an authorized delegate for a felony.
Section 7.05 Bank Secrecy Act Reports. A licensee and an authorized delegate shall file all reports required by federal currency reporting, record keeping, and suspicious activity reporting requirements as set forth in the Bank Secrecy Act and other federal and state laws pertaining to money laundering. The timely filing of a complete and accurate report required under this Section 7.05 with the appropriate federal agency is deemed compliant with the requirements of this Section 7.05.
Section 7.06 Records. (a) Licensee shall maintain the following records, for determining its compliance with this act for at least five (5) years:
(1) A record of each money transmission obligation sold;
(2) A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;
(3) Bank statements and bank reconciliation records;
(4) Records of outstanding money transmission;
(5) Records of each outstanding money transmission obligation paid within the five (5) year period;
(6) A list of the last known names and addresses of all of the licensee's authorized delegates; and
(7) Any other records the commissioner requires by rule, regulation, order.
(b) The items specified in Section 7.06(a) may be maintained in photographic, electronic or other similar form.
(c) Records specified in Section 7.06(a) may be maintained outside this state if they are made accessible to the commissioner on seven (7) business-days' notice that is sent in a record.
(d) All records maintained by the licensee as required in Section 7.06(a)–(c) are open to inspection by the commissioner pursuant to Section 4.03(a).
SECTION 8. The following shall be codified as Section 75-15-115, Mississippi Code of 1972:
75-15-115. Section 8.01. Relationship Between Licensee and Authorized Delegate. (a) In this Section 8.01, "remit" means to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee.
(b) Before a licensee is authorized to conduct business through an authorized delegate or allows a person to act as the licensee's authorized delegate, the licensee must:
(1) Adopt, and update as necessary, written policies and procedures designed to ensure that the licensee's authorized delegates comply with applicable state and federal law;
(2) Enter into a written contract that complies with Section 8.01(d); and
(3) Conduct a risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.
(c) An authorized delegate must operate in full compliance with this act.
(d) The written contract required by Section 8.01(b) must be signed by the licensee and the authorized delegate and, at a minimum, must:
(1) Appoint the person signing the contract as the licensee's authorized delegate with the authority to conduct money transmission on behalf of the licensee;
(2) Set forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;
(3) Require the authorized delegate to agree to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including this act and regulations implementing this act, relevant provisions of the Bank Secrecy Act and the USA PATRIOT ACT;
(4) Require the authorized delegate to remit and handle money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate;
(5) Impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee;
(6) Require the authorized delegate to prepare and maintain records as required by this act or regulations implementing this act, or as requested by the commissioner;
(7) Acknowledge that the authorized delegate consents to examination or investigation by the commissioner;
(8) State that the licensee is subject to regulation by the commissioner and that, as part of that regulation, the commissioner may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation; and
(9) Acknowledge receipt of the written policies and procedures required under Section 8.01(b)(1).
(e) If the licensee's license is suspended, revoked, surrendered, or expired, the licensee must, within five (5) business days, provide documentation to the commissioner that the licensee has notified all applicable authorized delegates of the licensee whose names are in a record filed with the commissioner of the suspension, revocation, surrender, or expiration of a license. Upon suspension, revocation, surrender, or expiration of a license, applicable authorized delegates shall immediately cease to provide money transmission as an authorized delegate of the licensee.
(f) An authorized delegate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.
(g) An authorized delegate may not use a subdelegate to conduct money transmission on behalf of a licensee.
Section 8.02. Unauthorized Activities. A person shall not engage in the business of money transmission on behalf of a person not licensed under this act or not exempt pursuant to Section 75-15-105. A person that engages in such activity provides money transmission to the same extent as if the person were a licensee, and shall be jointly and severally liable with the unlicensed or nonexempt person.
SECTION 9. The following shall be codified as Section 75-15-117, Mississippi Code of 1972:
75-15-117. Section 9.01. Timely Transmission. (a) Every licensee shall forward all money received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee has a reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud or that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur.
(b) If a licensee fails to forward money received for transmission in accordance with this section, the licensee must respond to inquiries by the sender with the reason for the failure unless providing a response would violate a state or federal law, rule, or regulation.
Section 9.02 Refunds. (a) This Section 9.02 does not apply to:
(1) Money received for transmission subject to the federal Remittance Rule (12 CFR Part 1005, Subpart B), as amended or recodified from time to time; or
(2) Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.
(b) Every licensee shall refund to the sender within ten (10) days of receipt of the sender's written request for a refund of any and all money received for transmission unless any of the following occurs:
(1) The money has been forwarded within ten (10) days of the date on which the money was received for transmission;
(2) Instructions have been given committing an equivalent amount of money to the person designated by the sender within ten (10) days of the date on which the money was received for transmission;
(3) The agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond ten (10) days of the date on which the money was received for transmission. If funds have not yet been forwarded in accordance with the terms of the agreement between the licensee and the sender, the licensee shall issue a refund in accordance with the other provisions of this Section 9.02; or
(4) The refund is requested for a transaction that the licensee has not completed based on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur.
(5) The refund request does not enable the licensee to:
(A) Identify the sender's name and address or telephone number; or
(B) Identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.
Section 9.03 Receipts. (a) This Section 9.03 does not apply to:
(1) Money received for transmission subject to the federal Remittance Rule (12 CFR Part 1005, Subpart B), as amended or recodified from time to time;
(2) Money received for transmission that is not primarily for personal, family or household purposes;
(3) Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee; or
(b) For purposes of this Section 9.03 "receipt" means a paper receipt, electronic record or other written confirmation. For a transaction conducted in person, the receipt may be provided electronically if the sender requests or agrees to receive an electronic receipt. For a transaction conducted electronically or by phone, a receipt may be provided electronically. All electronic receipts shall be provided in a retainable form.
(c) Every licensee or its authorized delegate shall provide the sender a receipt for money received for transmission.
(1) The receipt shall contain the following information, as applicable:
(A) The name of the sender;
(B) The name of the designated recipient;
(C) The date of the transaction;
(D) The unique transaction or identification number;
(E) The name of the licensee, NMLS Unique ID, the licensee's business address, and the licensee's customer service telephone number;
(F) The amount of the transaction in United States dollars;
(G) Any fee charged by the licensee to the sender for the transaction; and
(H) Any taxes collected by the licensee from the sender for the transaction.
(2) The receipt required by this Section 9.03 shall be in English and in the language principally used by the licensee or authorized delegate to advertise, solicit, or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English.
SECTION 10. The following shall be codified as Section 75-15-119, Mississippi Code of 1972:
75-15-119. Section 10.01. Net Worth. (a) A licensee under this act shall maintain at all times a tangible net worth of the greater of One Hundred Thousand Dollars ($100,000.00) or three percent (3%) of total assets for the first One Hundred Million Dollars ($100,000,000.00), two percent (2%) of additional assets for One Hundred Million Dollars ($100,000,000.00) to One Billion Dollars ($1,000,000,000.00), and one-half percent (0.5%) of additional assets for over One Billion Dollars ($1,000,000,000.00).
(b) Tangible net worth must be demonstrated at initial application by the applicant's most recent audited statements pursuant to Section 5.03(b)(6) of Section 75-15-109.
(c) Notwithstanding the foregoing provisions of this Section 10.01, the commissioner shall have the authority, for good cause shown, to exempt, in-part or in whole, from the requirements of this Section 10.01 any applicant or licensee.
Section 10.02. Surety Bond. (a) An applicant for a money transmission license must provide, and a licensee at all times must maintain, security consisting of a surety bond issued by a bonding company or insurance company authorized to do business in the State of Mississippi and in a form satisfactory to the commissioner or, with the commissioner's approval, a deposit instead of a bond in accordance with this Section 10.02.
(b) The amount of the required security shall be:
(1) The greater of One Hundred Thousand Dollars ($100,000.00) or an amount equal to one hundred percent (100%) of the licensee's average daily money transmission liability in this state calculated for the most recently completed three-month period, up to a maximum of Five Hundred Thousand Dollars ($500,000.00). A licensee that maintains a bond in the maximum amount provided for in Section 10.02(b)(1) or (2), as applicable shall not be required to calculate its average daily money transmission liability in this state for purposes of this Section 10.02.
(c) A licensee may exceed the maximum required bond amount pursuant to Section 10.04(a)(5).
(d) The bond shall be in a form satisfactory to the commissioner and shall run to the state for the use and benefit of the Department of Banking and Consumer Finance and any claimants against the licensee or his agents to secure the faithful performance of the obligations of the licensee and his agents with respect to the receipt, handling, transmission and payment of money in connection with money transmissions in Mississippi.
(e) Any claimants against the licensee or his agents may themselves bring suit directly on the bond, or the Attorney General may bring suit thereon in behalf of those claimants, either in one (1) action or successive actions.
(f) The commissioner may increase the required amount of the bond or deposit upon the basis of the impaired financial condition of a licensee as evidenced by a reduction in net worth, financial losses or other relevant criteria.
(g) Any provision in this act to the contrary notwithstanding, the commissioner may at any time, if in the commissioner's sole opinion the protection of the public so requires, increase the principal sum of the bond or deposit required of any applicant or licensee by this act but in no case shall the principal sum of the bond or deposit required exceed One Million Dollars ($1,000,000).
Section 10.03. Maintenance of Permissible Investments. (a) A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding money transmission obligations.
(b) Except for permissible investments enumerated in Section 10.04(a), the commissioner, with respect to any licensee, may by rule, regulation or order limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of investments.
(c) Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 USC Section 101-110, as amended or recodified from time to time, for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or in the event of an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this Section 10.03(c) shall be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust.
(d) Upon the establishment of a statutory trust in accordance with Section 10.03(c) or when any funds are drawn on a letter of credit pursuant to Section 10.04(a)(4), the commissioner shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the trust or the funds drawn on the letter of credit, as applicable. Notice shall be deemed satisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state, and other states, as applicable. Any statutory trust established hereunder shall be terminated upon extinguishment of all of the licensee's outstanding money transmission obligations.
(e) The commissioner, by rule, regulation or by order may allow other types of investments that the commissioner determines are of sufficient liquidity and quality to be a permissible investment. The commissioner is authorized to participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and quality to be a permissible investment.
Section 10.04. Types of Permissible Investments. (a) The following investments are permissible under Section 10.03:
(1) Cash (including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution) and cash equivalents including ACH items in transit to the licensee and ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated "AAA" by S&P, or the equivalent from any eligible rating service;
(2) Certificates of deposit or senior debt obligations of an insured depository institution, as defined in Section 3 of the Federal Deposit Insurance Act, 12 USC Section 1813, as amended or recodified from time to time, or as defined under the federal Credit Union Act, 12 USC Section 1781, as amended or recodified from time to time;
(3) An obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof;
(4) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven (7) days of presentation of the items required by Section 10.04(a)(4)(C).
(A) The letter of credit must:
(i) Be issued by a federally insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states, or a foreign bank that is authorized under state law to maintain a branch in a state that (1) bears an eligible rating or whose parent company bears an eligible rating; and (2) is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies;
(ii) Be irrevocable, unconditional and indicate that it is not subject to any condition or qualifications outside of the letter of credit;
(iii) Not contain reference to any other agreements, documents or entities, or otherwise provide for any security interest in the licensee; and
(iv) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one (1) year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least sixty (60) days prior to any expiration date, that the irrevocable letter of credit will not be extended.
(B) In the event of any notice of expiration or nonextension of a letter of credit issued under Section 10.04(a)(4)(A)(iv), the licensee shall be required to demonstrate to the satisfaction of the commissioner, fifteen (15) days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with Section 10.03(a) upon the expiration of the letter of credit. If the licensee is not able to do so, the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with Section 10.03(a). Any such draw shall be offset against the licensee's outstanding money transmission obligations. The drawn funds shall be held in trust by the commissioner or the commissioner's designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations.
(C) The letter of credit shall provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit:
(i) The original letter of credit (including any amendments); and
(ii) A written statement from the beneficiary stating that any of the following events have occurred:
1. The filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 USC Section 101-110, as amended or recodified from time to time, for bankruptcy or reorganization;
2. The filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;
3. The seizure of assets of a licensee by a commissioner pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or
4. The beneficiary has received notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with Section 10.03(a) upon the expiration or non-extension of the letter of credit.
(D) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner. The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this Section 10.04(a)(4) are assigned to the commissioner.
(E) The commissioner is authorized and encouraged to participate in multistate processes designed to facilitate the issuance and administration of letters of credit, including, but not limited to, services provided by the NMLS and State Regulatory Registry, LLC.
(5) One hundred percent (100%) of the surety bond or deposit provided for under Section 10.02 that exceeds the average daily money transmission liability in this state.
(6) Any other investment approved by the commissioner.
(b) Unless permitted by the commissioner by rule, regulation or by order to exceed the limit as set forth herein, the following investments are permissible under Section 10.03 to the extent specified:
(1) Receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than seven (7) days old, up to fifty percent (50%) of the aggregate value of the licensee's total permissible investments;
(2) Of the receivables permissible under Section 10.04(b)(1), receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed ten percent (10%) of the aggregate value of the licensee's total permissible investments.
(3) The following investments are permissible up to twenty percent (20%) per category and combined up to fifty percent (50%) of the aggregate value of the licensee's total permissible investments:
(A) A short-term (up to six (6) months) investment bearing an eligible rating;
(B) Commercial paper bearing an eligible rating;
(C) A bill, note, bond, or debenture bearing an eligible rating;
(D) U.S. tri-party repurchase agreements collateralized at one hundred percent (100%) or more with U.S. government or agency securities, municipal bonds, or other securities bearing an eligible rating;
(E) Money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S&P, or the equivalent from any other eligible rating service; and
(F) A mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in Section 10.04(a)(1)–(3).
(4) Cash (including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers) at foreign depository institutions are permissible up to ten percent (10%) of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution:
(A) Has an eligible rating;
(B) Is registered under the Foreign Account Tax Compliance Act;
(C) Is not located in any country subject to sanctions from the Office of Foreign Asset Control; and
(D) Is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force.
SECTION 11. The following shall be codified as Section 75-15-121, Mississippi Code of 1972:
75-15-121. Section 11.01. Suspension and Revocation. (a) The commissioner may suspend or revoke a license or order a licensee to revoke the designation of an authorized delegate if:
(1) The licensee or any authorized delegate, agent, or representative violates this act or a rule or regulation adopted or an order issued under this act;
(2) The licensee or any authorized delegate, agent, or representative does not cooperate with an examination or investigation by the commissioner;
(3) The licensee or any authorized delegate, agent, or representative engages in fraud, intentional misrepresentation, or gross negligence;
(4) An authorized delegate is convicted of a violation of a state or federal anti-money laundering statute, or violates a rule or regulation adopted or an order issued under this act, as a result of the licensee's willful misconduct or willful blindness;
(5) The competence, experience, character, or general fitness of the licensee, authorized delegate, person in control of a licensee, key individual, or responsible person of the authorized delegate indicates that it is not in the public interest to permit the person to provide money transmission;
(6) The licensee or any authorized delegate, agent, or representative engages in an unsafe or unsound practice;
(7) The licensee is insolvent, suspends payment of its obligations, or makes a general assignment for the benefit of its creditors; or
(8) The licensee does not remove an authorized delegate after the commissioner issues and serves upon the licensee a final order including a finding that the authorized delegate has violated this act.
(b) In determining whether a licensee is engaging in an unsafe or unsound practice, the commissioner may consider the size and condition of the licensee's money transmission, the magnitude of the loss, the gravity of the violation of this act, and the previous conduct of the person involved.
Section 11.02. Notice and Hearing. (a) Except where a license is automatically revoked without any act of the commissioner as specially provided in this Section, no license shall be revoked except on ten (10) days' notice (the first day of the ten-day period to be the date stated on the notice, which shall be the day it is mailed) to the licensee by the commissioner, sent by letter by United States registered mail, return receipt requested, to the licensee's business address set forth in the application.
(b) Upon receipt of the notice, as stated in the registered mail receipt, the licensee may, within five (5) days thereafter (which five-day period may be wholly or partially outside of the ten-day period) make written demand for a hearing by the commissioner, which demand must be accompanied by an additional surety bond or securities deposit, as hereafter provided, the principal sum or the market value thereof to be specified by the commissioner in the revocation notice.
(c) The revocation notice shall not become final during the period of time in which the licensee may demand such hearing nor if licensee demands a hearing, until the matter has been finally determined by the commissioner or by the courts, provided that the licensee posts together with his written demand for hearing an additional corporate surety bond, written by the same surety that wrote the bond required under Section 10.02 of Section 75-15-119 or an additional deposit in addition to the deposit theretofore made by the licensee under Section 10.02 of Section 75-19-119 which additional surety bond or deposit shall be in a principal amount or of a market value deemed adequate by the commissioner as specified in the revocation order but not exceeding One Million Dollars ($1,000,000.00), provided that if the licensee originally deposited with his application under Section 10.02 of Section 75-15-119 a corporate surety bond, the additional deposit provided in this section must be another corporate surety bond or an increase of the first one and may not be a deposit, or if the licensee originally made a deposit, the additional deposit shall also be of the same manner and not a corporate surety bond. The bond or deposit shall secure the same obligations as does the corporate surety bond or deposit required by Section 10.02 of Section 75-15-119, but shall be in addition to the bond or deposit required thereby.
(d) Upon receipt of the written demand, the commissioner shall thereafter, with reasonable promptness, hear and determine the matter as provided by law or regulation.
(e) If the licensee deems himself aggrieved by the determination or order of the commissioner, he may within thirty (30) days after the determination or order, have the determination or order reviewed by an appeal to the Chancery Court of the First Judicial District of Hinds County, Mississippi, by filing a petition setting out the specific order or action or part thereof by which the person deems himself aggrieved. All those petitions shall be given preferred settings and shall be heard by the court as speedily as possible. Such an appeal shall be perfected upon the posting of a bond for the costs of the appeal accompanied by the petition. Any party to the appeal may appeal to the Supreme Court of Mississippi from the decree or order of the chancery court, within thirty (30) days from the rendition of the decree or order, in the manner provided by law for appeals to the Supreme Court of Mississippi from chancery courts.
(f) Final revocation of the license, whether automatic or by final determination of the commissioner or the courts, shall cancel as of the date of final revocation all bonds or deposits theretofore deposited by the licensee under any provision of this section, provided that the licensee (and his corporate surety, if any) shall not be relieved of any accrued liabilities, and provided further, where the licensee made a deposit, that there shall not be returned to the licensee any of the deposit until the commissioner determines that all accrued liabilities (including, but not limited to, the principal sums thereof, accrued interest thereon, and court costs, if any, assessed to the licensee) of the licensee under this section have been satisfied in full.
(g) The commissioner may at any time revoke a license, on any ground on which he might refuse to grant a license, for failure to pay an annual fee or for violation of any provision of this section, subject to the provisions of this section.
(h) A license shall be automatically and finally revoked without any act or further act of the commissioner and without any right of the licensee to any hearing or further hearing by the commissioner or the courts and without any right of the licensee or the commissioner to reinstate or have reinstated the license, in the following instances: (a) at expiration of the sixty-day notice period, if the corporate surety gives notice of cancellation of its bond or any of them; (b) upon failure by licensee to pay when due the annual license fee required by Section 5.06 of Section 75-15-109; (c) upon failure by licensee to file when due any information required by this act; (d) in case of a revocation notice under the Section 11.02(a), failure by the licensee to demand hearing as provided therein or failure to deposit any additional corporate surety bond or deposit as required by the commissioner; (e) upon a license revocation order becoming final at any stage; (f) failure by licensee to deposit when due any additional corporate surety bond or deposit required by the commissioner under Section 10.02(h) of Section 75-15-119; or (g) upon final conviction of licensee as to any offense covered by this act.
(i) If a revocation order becomes final for any reason or in any manner, the license may not be reinstated, except upon new application as if the licensee had never been licensed before. The commissioner may deny the new application on grounds that a previous application was denied or a previous license to applicant was revoked or any ground or grounds on which he may deny an original application.
Section 11.03. Orders to Cease and Desist. (a) If the commissioner determines that a violation of this act or of a rule or regulation adopted or an order issued under this act by a licensee or authorized delegate is likely to cause immediate and irreparable harm to the licensee, its customers, or the public as a result of the violation, or cause insolvency or significant dissipation of assets of the licensee, the commissioner may issue an order requiring the licensee or authorized delegate to cease and desist from the violation. The order becomes effective upon service of it upon the licensee or authorized delegate.
(b) When the commissioner has reasonable cause to believe that a person is violating any provision of this act, the commissioner, in addition to and without prejudice to the authority provided elsewhere in this act, may sue in the Chancery Court of the First Judicial District of Hinds County, Mississippi to enjoin the person from engaging in or continuing the violation or from doing any act in furtherance of the violation. In such an action, the court may enter any order or judgment awarding a preliminary or permanent injunction.
(c) An order to cease and desist remains effective until rescinded or released by the commissioner or appealed as provided in this section.
(d) A licensee that is served with an order to cease and desist may petition the Chancery Court of the First Judicial District of Hinds County, Mississippi, for a judicial order setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order.
Section 11.04. Consent Orders. The commissioner may enter into a consent order at any time with a person to resolve a matter arising under this act or a rule or regulation adopted or order issued under this act. A consent order must be signed by the person to whom it is issued or by the person's authorized representative, and must indicate agreement with the terms contained in the order. A consent order may provide that it does not constitute an admission by a person that this act or a rule or regulation adopted or an order issued under this act has been violated.
Section 11.05. Criminal Penalties. (a) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this act or that intentionally makes a false entry or omits a material entry in such a record is guilty of a felony and, upon conviction thereof, shall be fined no less than Five Hundred Dollars ($500.00) nor more than Three Thousand Dollars ($3,000.00), and may also be punished by imprisonment in the custody of the State Department of Corrections for a term not less than one (1) year and not more than five (5) years.
(b) A person that knowingly engages in an activity for which a license is required under this act without being licensed under this act and who receives more than Five Hundred Dollars ($500.00) in compensation within a thirty (30) day period from this activity is guilty of a felony and, upon conviction thereof, shall be fined no less than Five Hundred Dollars ($500.00) nor more than Three Thousand Dollars ($3,000.00), and may also be punished by imprisonment in the custody of the State Department of Corrections for a term not less than one (1) year and not more than five (5) years.
(c) A person that knowingly engages in an activity for which a license is required under this act without being licensed under this act and who receives no more than Five Hundred Dollars ($500.00) in compensation within a thirty (30) day period from this activity is guilty of a misdemeanor and, upon conviction, shall be fined not less than One Hundred Dollars ($100.00) nor more than Five Hundred Dollars ($500.00), and may also be confined to the county jail for not more than twelve (12) months.
Section 11.06. Civil Penalties. (a) The commissioner may assess a civil penalty against a person that violates this act or a rule or regulation adopted or an order issued under this act in an amount not to exceed One Thousand Dollars ($1,000.00) per day for each day the violation is outstanding, plus this state's costs and expenses for the investigation and prosecution of the matter, including reasonable attorney's fees.
(b) If any person engages in business as provided for in this act without paying the license fee provided for in this act before beginning business or before the expiration of the person's current license, as the case may be, then the person shall be liable for the full amount of the license fee plus a penalty in an amount not to exceed One Thousand Dollars ($1,000.00) for each day that the person has engaged in the business without a license or after the expiration of a license.
Section 11.07. Unlicensed Persons. (a) If the commissioner has reason to believe that a person has violated or is violating Section 5.01 of Section 75-15-109, the commissioner may issue an order to show cause why an order to cease and desist should not issue requiring that the person cease and desist from the violation of Section 5.01.
(b) In an emergency, the commissioner may petition the Chancery Court of the First Judicial District of Hinds County, Mississippi for the issuance of a temporary restraining order ex parte pursuant to the rules of civil procedure.
(c) An order to cease and desist becomes effective upon service of it upon the person.
(d) An order to cease and desist remains effective and enforceable until rescinded or released by the commissioner or appealed as provided in this section.
(e) A person that is served with an order to cease and desist for violating Section 5.01 of Section 75-15-109 may petition the Chancery Court of the First Judicial District of Hinds County, Mississippi for a judicial order setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order.
SECTION 12. The following shall be codified as Section 75-15-123, Mississippi Code of 1972:
75-15-123. Investigation of Possible Violations. In addition to and without prejudice to the authority provided elsewhere in this act, the commissioner, or his duly authorized representative, for the purpose of discovering violations of this act and for the purpose of determining whether persons are subject to the provisions of this act, may examine persons licensed under this chapter and persons reasonably suspected by the commissioner of conducting business that requires a license under this act, including all relevant books, records and papers employed by those persons in the transaction of their business, and may summon witnesses and examine them under oath concerning matters relating to the business of those persons, or such other matters as may be relevant to the discovery of violations of this act, including without limitation the conduct of business without a license as required under this chapter.
SECTION 13. The following shall be codified as Section 75-15-125, Mississippi Code of 1972:
75-15-125. Section 13.01. Uniformity of Application and Construction. In applying and construing this act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Section 13.02. Severability Clause. If any provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
Section 13.03. Transition Period. (a) A person licensed in this state to engage in the business of money transmission shall not be subject to the provisions of this act, to the extent that they conflict with current law or establish new requirements not imposed under current law, until such time as the licensee renews its current license or for twelve (12) months after the effective date of this act, whichever is later.
(b) Notwithstanding Section 13.03(a), a licensee shall only be required to amend its authorized delegate contracts for contracts entered into or amended after the effective date or the completion of any transition period contemplated under Section 13.03(a). Nothing herein shall be construed as limiting an authorized delegate's obligations to operate in full compliance with this act as required by Section 8.01(c).
SECTION 14. Sections 75-15-1, 75-15-3, 75-15-5, 75-15-7, 75-15-9, 75-15-11, 75-15-12, 75-15-13, 75-15-15, 75-15-17, 75-15-19, 75-15-21, 75-15-23, 75-15-25, 75-15-27, 75-15-29, 75-15-31, 75-15-32, 75-15-33 and 75-15-35, Mississippi Code of 1972, which are the Mississippi Money Transmitters Act, are repealed.
SECTION 15. This act shall take effect and be in force from and after July 1, 2025.
