Title XIII, COMMERCE (Ch. 505 - 554I)

This chapter may be cited as the “Uniform Money Transmission Modernization Act” . 2003 Acts, ch 96, §1, 42 ; 2023 Acts, ch 83, §2

In this chapter : 1. “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. 2. “Authorized delegate” means a person a licensee designates to provide money transmiss…

The superintendent may require that any person claiming to be exempt from licensing pursuant to this section provide information and documentation to the superintendent demonstrating that the person qualifies for any claimed exemption. This chapter does not apply to: 1. The Unite…

1. In order to carry out the purposes of this chapter , the superintendent may, subject to the provisions of section 533C.202 : a. Enter into agreements or relationships with other government officials, federal and state regulatory agencies, and regulatory associations in order t…

1. Except as otherwise provided in subsection 2 , financial statements, balance sheets, authorized delegate information, all information and reports obtained by the superintendent from an applicant, licensee, or authorized delegate, and all information contained in or related to …

1. The superintendent may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this chapter or by a rule adopted or order issued under this chapter as reasonably necessary or appropriate to administer and …

1. To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the superintendent is authorized and encouraged to participate in multistate supervisory processes established between states and coordinated through the conference of state b…

1. In the event state money transmission jurisdiction is conditioned on a federal law, any inconsistencies between a provision of this chapter and the federal law governing money transmission shall be governed by the applicable federal law to the extent of the inconsistency. 2. I…

1. A person shall not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless they are licensed under this article . 2. This section shall not apply to the following: a. A person that is an authorized delegate …

1. To establish consistent licensing between this state and other states, the superintendent is authorized and encouraged to provide all of the following: a. Implement all licensing provisions of this chapter in a manner that is consistent with other states that have adopted this…

1. Applicants for a license under this chapter shall apply on a form prescribed by the superintendent. Each such form shall contain content as set forth by rule, regulation, instruction, or procedure of the superintendent and shall be changed or updated by the superintendent in a…

1. An individual in control of a licensee or applicant, an individual seeking to acquire control of a licensee, and each key individual shall furnish to the superintendent through NMLS the following items: a. The individual’s fingerprints for submission to the federal bureau of i…

1. When an application for an original license is filed under this chapter and appears to include all required information, the application is considered complete and the superintendent shall promptly notify the applicant in a record of the date on which the application is determ…

1. A license under this chapter shall be renewed annually. An annual renewal fee of five hundred dollars plus an additional ten dollars for each location in this state at which business is conducted through authorized delegates or employees of the licensee, which shall not exceed…

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 superintendent may suspend or revoke the licensee’s license in accordance with the procedures established by this chapter or…

1. Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall obtain the written approval of the superintendent prior to acquiring control. An individual is not deemed to acquire control of a licensee and is not subject to acquisition of con…

1. A licensee adding or replacing any key individual shall provide notice in a manner prescribed by the superintendent within fifteen days after the effective date of the key individual’s appointment and provide information as required by section 533C.304 within forty-five days o…

1. 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 shall do all of the following: a. Adopt, and update as necessary, written policies and procedures reasonably designe…

A person shall not engage in the business of money transmission on behalf of a person not licensed under this chapter . A person who 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…

1. A licensee shall submit a report of condition within forty-five days of the end of the calendar quarter, or within any extended time as the superintendent may prescribe. 2. The report of condition shall include all of the following: a. Financial information at the licensee lev…

1. A licensee shall, within ninety days after the end of each fiscal year, or within any extended time as the superintendent may prescribe, file with the superintendent an audited financial statement for the fiscal year prepared in accordance with United States generally accepted…

1. A licensee shall submit a report of authorized delegates within forty-five days of the end of the calendar quarter. The superintendent is authorized and encouraged to utilize NMLS for the submission of the report required by this section provided that such functionality is con…

1. A licensee shall submit a nonrefundable fee of one thousand dollars with the request and file a report with the superintendent within one business day after the licensee knows or has reason to know of the occurrence of any of the following events: a. The filing of a petition b…

A licensee and an authorized delegate shall file all reports required by federal currency reporting, record keeping, and suspicious activity reporting requirements pursuant to the federal Bank Secrecy Act and other federal and state laws pertaining to money laundering. The timely…

1. A licensee shall maintain records in any form, for the purpose of determining compliance with this chapter , for at least three years, including all of the following: a. A record of each outstanding money transmission obligation sold. b. A general ledger posted at least monthl…

1. Except as otherwise provided by this chapter , the records of the superintendent relating to examinations, supervision, and regulation of a person licensed pursuant to this chapter or authorized delegates of a person licensed pursuant to this chapter are not public records and…

1. 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 cr…

1. Every licensee shall refund to the sender within ten 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: a. The money has been forwarded within ten days of the date on which the money w…

1. 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 …

1. A licensee that provides payroll processing services shall do all of the following: a. Issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account. b. Make available worker pay stubs or an equivalent statement to…

1. A licensee under this chapter shall maintain at all times a tangible net worth of the greater of one hundred thousand dollars or three percent of total assets for the first one hundred million dollars, two percent of additional assets for one hundred million dollars to one bil…

1. An applicant for a money transmission license shall provide, and a licensee at all times shall maintain, security consisting of a surety bond in a form satisfactory to the superintendent. 2. The amount of the required security shall be the greater of one hundred thousand dolla…

1. 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. 2. Except …

1. The following investments are permissible under section 533C.803 : a. 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. b. Cash equivalents inc…

The superintendent may suspend or revoke a licensee’s license, place a licensee in receivership, or order a licensee to revoke the designation of an authorized delegate if any of the following apply: 1. The licensee violates this chapter , a rule adopted under this chapter , or a…

1. The superintendent may issue an order suspending or revoking the designation of an authorized delegate if the superintendent finds any of the following apply: a. The authorized delegate violated this chapter , a rule adopted under this chapter , or an order issued under this c…

1. a. If the superintendent determines that a violation of this chapter , a rule adopted under this chapter , or an order issued under this chapter by a licensee or authorized delegate is likely to cause immediate and irreparable harm to the licensee, the licensee’s customers, or…

The superintendent may enter into a consent order at any time with a person to resolve a matter arising under this chapter , a rule adopted under this chapter , or an order issued under this chapter . A consent order must be signed by the person to whom the consent order is issue…

1. The attorney general or a county attorney may conduct an investigation within or outside of this state to determine if a licensee, an authorized delegate, or a person engaged in a trade or business has failed to file a report required by this chapter , or has engaged or is eng…

The superintendent may assess a civil penalty against a person who violates this chapter , a rule adopted under this chapter , or an order issued under this chapter in an amount not to exceed one thousand dollars per day for each day the violation is outstanding, plus the state’s…

1. A person who is not licensed under this chapter and who knowingly engages in an activity for which a license is required under this chapter commits an aggravated misdemeanor. 2. A person commits a class “C” felony, and is subject to a civil penalty of three times the value of …

1. Except as otherwise provided in section 533C.903 , the superintendent shall not suspend or revoke a license, place a licensee in receivership, issue an order to cease and desist, suspend or revoke the designation of an authorized delegate, or assess a civil penalty without not…