Title 13 — Debtor and Creditor Relationship

For purposes of this chapter, the following definitions shall apply: 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. "Anti-Money Laundering Act of 2020…

This chapter does not apply to: 1. 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 …

The commissioner may require any person claiming to be exempt from licensing pursuant to section 13-09.1-02 to provide information and documentation to the commissioner demonstrating the person qualifies for any claimed exemption.

1. In order to carry out the purposes of this chapter, the commissioner may, subject to the provisions of subsections 1 and 2 of section 13-09.1-05: a. Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory a…

1. Except as otherwise provided in subsection 2, 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 prepar…

1. The commissioner 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 en…

1. To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the commissioner may participate in multistate supervisory processes established between states and coordinated through the conference of state bank supervisors, money transmi…

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 must be governed by the applicable federal law to the extent of the inconsistency. 2. In…

1. A person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless the person is licensed under this chapter; 2. Subsection 1 does not apply to: a. A person that is an authorized delegate of a person l…

1. To establish consistent licensing between North Dakota and other states, the commissioner may: a. Implement all licensing provisions of this chapter in a manner that is consistent with other states that have adopted this chapter or multistate licensing processes; and b. Partic…

1. Applicants for a license shall apply in a form and in a medium as prescribed by the commissioner. Each form must 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…

1. 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 the nationwide system the following items: a. The individual's fingerprints for submission to the…

1. When an application for an original license under this chapter appears to include all the items, 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 applicati…

1. A license under this chapter must be renewed annually. a. An annual nonrefundable renewal fee must be paid by December thirty-first. The fee must equal five hundred dollars or one-fourth of one percent of the money transmission dollar volume in North Dakota for the twelve mont…

1. 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 chapter o…

1. 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. An individual is not deemed to acquire control of a licensee and is not subject to the acquisition of c…

1. A licensee adding or replacing any key individual shall: a. Provide notice in a manner prescribed by the commissioner within fifteen days after the effective date of the key individual's appointment; and b. Provide information as required by section 13-09.1-12 within forty-fiv…

1. Each 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 commissioner may prescribe. 2. The report of condition must include: a. Financial information at the licensee level; b. Nationwide and…

1. Each licensee shall, within ninety days after the end of each fiscal year, or within any extended time as the commissioner may prescribe, file with the commissioner: a. An audited financial statement of the licensee for the fiscal year prepared in accordance with United States…

1. Each licensee shall submit a report of authorized delegates within forty-five days of the end of the calendar quarter. The commissioner may utilize the nationwide system for the submission of the report required by this subsection provided that such functionality is consistent…

1. A licensee shall file a report with the commissioner within one business day after the licensee has reason to know of the occurrence of any of the following events: a. The filing of a petition by or against the licensee under the federal bankruptcy code [11 U.S.C. Section 101-…

A licensee and an authorized delegate shall file all reports required by federal currency reporting, recordkeeping, and suspicious activity reporting requirements as set forth in the federal Anti-Money Laundering Act of 2020 and other federal and state laws pertaining to money la…

1. A licensee shall maintain the following records, for determining its compliance with this chapter for at least six years: a. A record of each outstanding money transmission obligation sold; b. A general ledger posted at least monthly containing all asset, liability, capital, i…

1. In this section, "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. 2. Before a licensee may conduct business through an authorized delegate or al…

A person shall not engage in the business of money transmission on behalf of a person not licensed under this chapter or not exempt pursuant to section 13-09.1-02. A person that engages in such activity provides money transmission to the same extent as if the person were a licens…

1. The district court of Burleigh County, in an action brought by a licensee, has jurisdiction to grant appropriate equitable or legal relief, including without limitation prohibiting the authorized delegate from directly or indirectly acting as an authorized delegate for any lic…

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. This section does not apply to: a. Money received for transmission subject to the federal remittance rule [title 12, Code of Federal Regulation, part 1005, subpart B]; or b. Money received for transmission pursuant to a written agreement between the licensee and payee to proce…

1. This section does not apply to: a. Money received for transmission subject to the federal remittance rule [title 12, Code of Federal Regulations, part 1005, subpart B]; b. Money received for transmission that is not primarily for personal, family, or household purposes; c. Mon…

Every licensee or authorized delegate shall include on a receipt or disclose on the licensee's website or mobile application the name and phone number of the department of financial institutions and a statement that the licensee's customers can contact the department of financial…

1. A licensee that provides payroll processing services shall: a. Issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account; and b. Make available worker paystubs or an equivalent statement to workers. 2. Subsecti…

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 must provide, and a licensee at all times must maintain, security consisting of a surety bond in a form satisfactory to the commissioner or, with the commissioner's approval, a deposit instead of a bond in accordance with this sect…

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 13-09.1-34: 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, and cash equivalents i…

1. The commissioner may suspend or revoke a license or order a licensee to revoke the designation of an authorized delegate if: a. The licensee violates this chapter or a rule adopted or an order issued under this chapter; b. The licensee does not cooperate with an examination or…

1. The commissioner may issue an order suspending or revoking the designation of an authorized delegate, if the commissioner finds that: a. The authorized delegate violated this chapter or a rule adopted or an order issued under this chapter; b. The authorized delegate did not co…

1. If the commissioner determines that a violation of this chapter or of a rule adopted or an order issued under this chapter 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 vi…

The commissioner may enter into a consent order at any time with a person to resolve a matter arising under this chapter or a rule adopted or order issued under this chapter. A consent order must be signed by the person to whom it is issued or by the person's authorized represent…

1. A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter or that intentionally makes a false entry or omits a material entry in such a record is guilty of a class C felony. …

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

1. If the commissioner has reason to believe that a person has violated or is violating section 13-09.1-09, 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…

This chapter goes into effect August 1, 2023. For current licensees, the effective date is upon license renewal, but no later than December 31, 2023.

For the purposes of sections 13-09.1-44 through 13-09.1-54, the following definitions apply: 1. "Blockchain analytics" means the analysis of data from blockchains or publicly distributed ledgers, including associated transaction information to provide risk-specific information ab…

1. This chapter does not apply to the exchange, transfer, or storage of virtual currency or to virtual-currency administration to the extent the Electronic Fund Transfer Act of 1978 [15 U.S.C. Sections 1693-1693r], the Securities Exchange Act of 1934 [15 U.S.C. Sections 78a-78oo]…

1. A person may not engage in virtual-currency business activity, or hold itself out as being able to engage in virtual-currency business activity, with or on behalf of another person unless the person is: a. Licensed in this state by the commissioner pursuant to section 13-09.1-…

1. A licensee that engages in virtual-currency business activity shall provide to a person who uses the licensee's products or services the disclosures required by subsection 2 and any additional disclosure the commissioner by rule or order determines reasonably necessary for the…

1. A licensee that has control of virtual currency for one or more persons shall maintain control of virtual currency in each type of virtual currency sufficient to satisfy the aggregate entitlements of the persons to the type of virtual currency. 2. If a licensee violates subsec…

1. A kiosk operator may not engage in virtual-currency business activity or hold itself out as being able to engage in virtual-currency business activity with or on behalf of another person unless the kiosk operator is licensed in this state as a money transmitter. 2. A virtual-c…

1. A virtual-currency kiosk operator shall disclose in a clear, conspicuous, and easily readable manner in the chosen language of the customer, all relevant terms and conditions generally associated with the products, services, and activities of the virtual- currency kiosk operat…