MississippiHB 14282025 Regular SessionHouseWALLET

Money Transmission Modernization Act; create and repeal MS Money Transmitters Act.

Sponsored By: Shane Aguirre (Republican)

Signed by Governor

Banking and Financial ServicesBusiness and Financial Institutions

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 0 benefits, 3 costs, 4 mixed.

Money transmitter applicants face background checks

Money transmitter applicants must submit business, ownership, financial, and background records, including specified history covering the past 10 years. The commissioner can waive or change information requirements or accept substitutes. Licensing requires a complete application, compliance with application and background rules, and findings supporting financial responsibility, competence, character, and the public interest. Any felony conviction bars an applicant, as do misdemeanors involving fraud, theft, forgery, bribery, embezzlement, or false statements. Owners with control, people seeking control, and key individuals must supply fingerprints, personal history, and credit-check information. Anyone who lived abroad during the past 10 years also needs an independent English-language investigative report. Fingerprints are waived for people currently abroad who lived abroad throughout those 10 years; credit reports are waived without a Social Security number.

Money transmitters face continuing oversight duties

Money transmitters must keep meeting licensing and financial safety requirements or face license suspension or revocation. Existing licensees have relief from conflicting or new requirements until their next renewal or July 1, 2026, whichever is later. The commissioner can examine licensees and authorized agents yearly or at other times considered proper. Businesses must provide records in the required place and format; key people and employees can be required to give sworn testimony. Refusing access can lead to license revocation. Independently audited financial statements are due within 90 days after each fiscal year, unless an extension is granted. They must follow U.S. accounting standards and include an acceptable accountant’s opinion. Licensees and agents must file required currency and suspicious-activity reports; complete, accurate, timely federal filings satisfy this state reporting duty.

Money transmitters pay licensing and oversight fees

The law sets a nonrefundable $1,500 application fee for money transmitters. Beginning with calendar year 2025, application-fee updates use the prior year’s consumer price change and round up to the nearest $100. The department must issue the update by July 1 of the following year. Annual renewal costs $800 plus $100 per planned Mississippi location beyond the first, capped at $5,800. Renewal terms run January 1 through December 31; payment is allowed no more than 60 days before expiration. Applicants pay for on-site investigations, and licensees pay actual examination costs for themselves and their agents unless the commissioner directs otherwise. The commissioner can also charge proportionate, fair fees for administration and enforcement; the law sets no dollar ceiling on examination costs.

Money transmitter licenses get decision deadlines

The commissioner has 120 days after an original license application is complete to approve or deny it. Without a decision, approval is automatic and the license starts the next business day. The commissioner can extend the deadline for good cause. New licenses generally expire December 31 of the year approved, requiring renewal to keep operating. Licenses starting November 1 through December 31 instead expire December 31 of the following year.

Money transmitter ownership changes face review

Taking control of a money transmitter generally requires advance written approval, an application, a nonrefundable fee, and financial and character review. Complete applications are approved automatically without a decision within 60 days, unless the commissioner extends the period for good cause. Listed exceptions cover proxy voting, inheritance, fiduciary or court appointments, exempt entities, public-interest cases, public offerings, and internal reorganizations. Those exceptions require notice within 15 days, except the listed proxy-voting and public-interest cases. Previously approved operators or control persons can use a faster notice process, with approval automatic unless rejected within 30 days after completion. They need five years without specified license suspensions or revocations, projected continued financial compliance, and no material business-plan changes from the deal. Acquiring licensees must also be well managed and have at least a satisfactory latest compliance rating, if one was given. New key individuals require notice within 15 days of appointment and background information within 45 days; they are approved unless rejected on public- or customer-interest grounds within 90 days after notice is complete.

Money transmitter records get privacy protections

Many application, examination, investigation, and financial records from money transmitters and authorized agents are confidential and exempt from public-records disclosure. Government representatives can receive protected records after promising in writing to keep them confidential. The commissioner can also release information when needed to protect the public. Specified license, agent, bond, final-order, and penalty information can be public. Confidential bond prices and fees must be removed from public bond records.

Money transmitters need licenses, with exemptions

Beginning July 1, 2025, Mississippi requires a license to provide, advertise, or offer money transmission, unless an exemption applies. Licenses cannot be transferred; authorized agents need no separate license when acting within their written contracts. Exemptions cover governments, qualifying financial institutions, payroll providers, payment processors, regulated securities activities, and supervised employees—not independent contractors. Payee agents need written agreements, and payment to the agent must end the payer’s debt without risking the payer’s money. Qualifying intermediaries must identify the licensed or exempt provider, which remains solely responsible for the transfer. Service providers for exempt financial institutions need written agreements making the institution responsible for losses and unpaid obligations. The commissioner can demand proof of exemptions and grant exemptions when regulation is unnecessary and exemption serves the public interest.

Sponsors & Cosponsors

Sponsor

Shane Aguirre
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 274 • No: 0

House vote • 3/25/2025

Concurred in Amend From Senate

Yes: 112 • No: 0 • Other: 2

Senate vote • 3/11/2025

Passed As Amended

Yes: 51 • No: 0

House vote • 2/11/2025