PRIA, Government Policy, Made Personal

Summary

Anyone who knowingly runs, manages, or owns all or part of a money-transmitting business that is not properly licensed can be fined under federal law, jailed for up to 5 years, or both. An "unlicensed money transmitting business" means a business that moves money across state lines or to other countries and either (1) operates without a required state license where that unlicensed operation is a crime under state law, (2) fails to follow the federal registration rule at 31 U.S.C. 5330, or (3) moves money the person knows came from a crime or will be used for illegal activity. "Money transmitting" means sending funds by any method (for example, wire, check, draft, fax, or courier). "State" includes the 50 states, the District of Columbia, the Northern Mariana Islands, and any U.S. commonwealth, territory, or possession.

Title 18, §1960

Crimes and Criminal Procedure, Source: USLM XML via OLRC

(a)Whoever knowingly conducts, controls, manages, supervises, directs, or owns all or part of an unlicensed money transmitting business, shall be fined in accordance with this title or imprisoned not more than 5 years, or both.

(b)As used in this section—

(1)the term “unlicensed money transmitting business” means a money transmitting business which affects interstate or foreign commerce in any manner or degree and—

(A)is operated without an appropriate money transmitting license in a State where such operation is punishable as a misdemeanor or a felony under State law, whether or not the defendant knew that the operation was required to be licensed or that the operation was so punishable;

(B)fails to comply with the money transmitting business registration requirements under section 5330 of title 31, United States Code, or regulations prescribed under such section; or

(C)otherwise involves the transportation or transmission of funds that are known to the defendant to have been derived from a criminal offense or are intended to be used to promote or support unlawful activity;

(2)the term “money transmitting” includes transferring funds on behalf of the public by any and all means including but not limited to transfers within this country or to locations abroad by wire, check, draft, facsimile, or courier; and

(3)the term “State” means any State of the United States, the District of Columbia, the Northern Mariana Islands, and any commonwealth, territory, or possession of the United States.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Subsec. (b)(1)(C). Pub. L. 109–162 substituted “to be used” for “to be used to be used”. 2001—Pub. L. 107–56 amended section catchline and text generally, substituting provisions relating to prohibition of unlicensed money transmitting businesses for similar provisions relating to prohibition of illegal money transmitting businesses. 1994—Subsec. (b)(1). Pub. L. 103–325 amended par. (1) generally. Prior to amendment, par. (1) read as follows: “(1) the term ‘illegal money transmitting business’ means a money transmitting business that affects interstate or foreign commerce in any manner or degree and which is knowingly operated in a State— “(A) without the appropriate money transmitting State license; and “(B) where such operation is punishable as a misdemeanor or a felony under State law;”.

§1960 Prohibition of Unlicensed Money Transmitting Businesses

Summary

Title 18, §1960

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata