State Codes and Statutes

Statutes > Wyoming > Title40 > Chapter22

CHAPTER 22 - WYOMING MONEY TRANSMITTERS ACT

 

40-22-101. Short title.

 

This act may be cited as the "WyomingMoney Transmitters Act."

 

40-22-102. Definitions.

 

(a) As used in this act:

 

(i) "Applicant" means a person filing an applicationfor a license;

 

(ii) "Authorized delegate" means an entity designatedby the licensee to engage in the business of transmitting money on behalf of alicensee;

 

(iii) "Commissioner" means the state bankingcommissioner;

 

(iv) "Control" means the power to vote or ownership oftwenty-five percent (25%) or more of the outstanding voting securities of alicensee or controlling person. To determine the percentage of a licenseecontrolled by any person, there shall be aggregated with the person's interestthe interest of any other person controlled by such person or by any spouse,parent or child of the person;

 

(v) "Controlling person" means any person in controlof a licensee;

 

(vi) "Division" means the division of banking;

 

(vii) "Electronic instrument" means a card or other tangibleobject for the transmission or payment of money which contains a microprocessorchip, magnetic stripe or other means for the storage of information that isprefunded and for which the value is decremented upon each use, but does notinclude a card or other tangible object that is redeemable by the issuer ingoods or services;

 

(viii) "Executive officer" means the licensee'spresident, chairman of the executive committee, senior officer responsible forthe licensee's business, chief financial officer and any other person whoperforms similar functions;

 

(ix) "Key shareholder" means any person, or group ofpersons acting in concert, who is the owner of twenty-five percent (25%) ormore of any voting class of an applicant's stock;

 

(x) "Licensee" means a person licensed under thisact;

 

(xi) "Material litigation" means any litigation thataccording to generally accepted accounting principles, is deemed significant toan applicant's or licensee's financial health and is referenced in theapplicant's or licensee's annual audited financial statements, report toshareholders or similar documents;

 

(xii) "Monetary value" means a medium of exchangewhether or not redeemable in money;

 

(xiii) "Money transmission" means to engage in businessto sell or issue payment instruments, stored value or receive money or monetaryvalue for transmission to a location within or outside the United States by anyand all means, including but not limited to wire, facsimile or electronictransfer;

 

(xiv) "Outstanding payment instrument" means anypayment instrument issued by the licensee which has been sold in the UnitedStates directly by the licensee or any payment instrument issued by thelicensee which has been sold by an authorized delegate of the licensee in theUnited States, which has been reported to the licensee as having been sold andwhich has not yet been paid by or for the licensee;

 

(xv) "Payment instrument" means any electronic orwritten check, draft, money order, travelers check or other electronic orwritten instrument or order for the transmission or payment of money, sold orissued to one (1) or more persons, whether or not the instrument is negotiable.The term "payment instrument" does not include any credit cardvoucher, any letter of credit or any instrument which is redeemable by theissuer in goods or services;

 

(xvi) "Permissible investments" means:

 

(A) Cash;

 

(B) Certificates of deposit or other debt obligations of afinancial institution, either domestic or foreign;

 

(C) Bills of exchange or time drafts drawn on and accepted by acommercial bank, otherwise known as bankers' acceptances, which are eligiblefor purchase by member banks of the federal reserve system;

 

(D) Any investment securities bearing a rating of one (1) ofthe four (4) highest grades as defined by a nationally recognized organizationthat rates securities;

 

(E) Investment securities that are obligations of the UnitedStates, its agencies or instrumentalities, or obligations that are guaranteedfully as to principal and interest of the United States, or any obligations ofany state, municipality or any political subdivision thereof;

 

(F) Shares in a money market mutual fund, interest bearingbills, notes or bonds, debentures or stock traded on any national securitiesexchange or on a national over the counter market, or mutual funds primarilycomposed of such securities or a fund composed of one (1) or more permissibleinvestments as set forth in this paragraph;

 

(G) Any demand borrowing agreement made to a corporation or asubsidiary of a corporation whose capital stock is listed on a nationalexchange;

 

(H) Receivables which are due to a licensee from its authorizeddelegates pursuant to a contract described in W.S. 40-22-118 which are not pastdue or doubtful of collection; or

 

(J) Any other investments or security device approved by thecommissioner.

 

(xvii) "Remit" means either to make direct payment ofthe funds to the licensee or its representatives authorized to receive thosefunds, or to deposit the funds in a bank, credit union or savings and loanassociation or other similar financial institution in an account specified bythe licensee;

 

(xviii) "Stored value" means monetary value that isevidenced by an electronic record.

 

40-22-103. License required.

 

(a) With the exception of those persons exempt pursuant to W.S.40-22-104, on and after October 1, 2003, no person shall engage in the businessof money transmission without a license. The division shall regulate moneytransmitters and carry out the provisions of this act.

 

(b) A person is engaged in the business of money transmissionif the person regularly advertises, offers or provides services to Wyomingresidents, through any medium including, but not limited to, internet or otherelectronic means.

 

(c) A licensee with a physical presence in this state mayconduct its business at one (1) or more locations, directly or indirectlyowned, or through one (1) or more authorized delegates, or both, pursuant to asingle license granted to the licensee, provided that for each business name, aseparate license shall be required.

 

(d) Every licensee and authorized delegate shall comply withthe Bank Secrecy Act, 12 U.S.C. 1951 et seq.

 

(e) Authorized delegates of a licensee, acting within the scopeof authority conferred by a written contract as described in W.S. 40-22-118shall not be required to obtain a license.

 

40-22-104. Exemptions.

 

(a) This act shall not apply to:

 

(i) The United States or any department, agency, orinstrumentality thereof;

 

(ii) The United States post office;

 

(iii) The state or any political subdivisions thereof;

 

(iv) Banks, bank holding companies, credit unions, building andloan associations, savings and loan associations, savings banks or mutual banksorganized under the laws of any state or the United States provided that theydo not issue or sell payment instruments through authorized delegates who arenot banks, bank holding companies, credit unions, building and loanassociations, savings and loan associations, savings banks or mutual banks; and

 

(v) Electronic transfer of government benefits for any federal,state or county governmental agency as defined in Federal Reserve BoardRegulation E by a contractor for and on behalf of the United States or anydepartment, agency or instrumentality thereof, or any state or any politicalsubdivisions thereof.

 

40-22-105. License requirements.

 

(a) Each licensee shall at all times have a net worth of notless than twenty-five thousand dollars ($25,000.00), as calculated inaccordance with generally accepted accounting principles.

 

(b) Every corporate applicant at the time of filing of anapplication for a license and at all times after a license is issued, shall bein good standing in the state of its incorporation. All noncorporateapplicants shall at the time of the filing of an application for a license andat all times after a license is issued, be registered or qualified to dobusiness in the state.

 

40-22-106. Bond or other security device.

 

(a) Each application shall be accompanied by a surety bond,irrevocable letter of credit or other similar security device acceptable to thecommissioner in the amount of ten thousand dollars ($10,000.00) or two andone-half (2 ) times the outstanding payment instruments, whichever is greater. The commissioner may increase the required amount of the bond or securitydevice to a maximum of five hundred thousand dollars ($500,000.00) upon thebasis of the impaired financial condition of a licensee as evidenced by areduction in net worth, financial losses or other relevant criteria. The securitydevice shall be in a form satisfactory to the commissioner and shall run to thestate for the benefit of any claimants against the licensee to secure thefaithful performance of the obligations of the licensee with respect to thereceipt, handling, transmission and payment of money in connection with thesale and issuance of payment instruments or transmission of money. In the caseof a bond, the aggregate liability of the surety in no event shall exceed theprincipal sum of the bond. Claimants against the licensee may bring suitdirectly on the security device or the commissioner may bring suit on behalf ofthe claimants either in one (1) action or in successive actions.

 

(b) In lieu of a security device or any portion of theprincipal thereof as required by this section, the licensee may deposit withthe commissioner or with banks in this state as the licensee may designate andthe commissioner may approve, cash, interest bearing stocks and bonds, notes,debentures or other obligations of the United States or any agency orinstrumentality thereof, or guaranteed by the United States, or of this stateor a political subdivision, or guaranteed by this state, to an aggregateamount, based upon principal amount or market value, whichever is lower, of notless than the amount of the security device or portion thereof. The securitiesor cash shall be deposited and held to secure the same obligations as would thesecurity device. The depositor shall be entitled to receive all interest anddividends and shall have the right with the approval of the commissioner, tosubstitute other securities for those deposited, and shall be required to do soon written order of the commissioner made for good cause shown.

 

(c) The security device shall remain in effect until cancellation,which may occur only after written notice to the commissioner thirty (30) daysprior to the effective date of cancellation. Cancellation shall not affect anyliability incurred or accrued during the thirty (30) day period.

 

(d) The security device shall remain in place for no longerthan five (5) years after the licensee ceases money transmission operations inthe state. The commissioner may permit the security device to be reduced oreliminated prior to the five (5) years to the extent that the amount of thelicensee's payment instruments outstanding in this state are reduced. Thecommissioner may also permit a licensee to substitute a letter of credit orother form of security device acceptable to the commissioner for the securitydevice in place at the time the licensee ceases money transmission operationsin the state.

 

40-22-107. Permissible investments and statutory trust.

 

(a) Each licensee shall at all times possess permissibleinvestments having an aggregate market value calculated in accordance withgenerally accepted accounting principles, of not less than the aggregate faceamount of all outstanding payment instruments and stored value issued or soldby the licensee in the United States. This requirement may be waived by the commissionerif the dollar volume of a licensee's outstanding payment instruments and storedvalue does not exceed the bond or other security devices posted by the licenseepursuant to W.S. 40-22-106.

 

(b) Permissible investments even if commingled with otherassets of the licensee, shall be deemed by operation of law to be held in trustfor the benefit of the purchasers and holders of the licensee's outstandingpayment instruments in the event of the bankruptcy of the licensee.

 

40-22-108. Application for license.

 

(a) Each application for a license shall be made in writing andin a form prescribed by the commissioner. Each application shall include thefollowing:

 

(i) The exact name of the applicant, the applicant's principaladdress, any fictitious or trade name used by the applicant in the conduct ofits business and the location of the applicant's business records;

 

(ii) The applicant's history of material litigation and criminalconvictions for the five (5) year period prior to the date of the application;

 

(iii) A description of the activities conducted by the applicantand a history of operations;

 

(iv) A description of the business activities in which theapplicant seeks to be engaged in the state;

 

(v) A list identifying the applicant's proposed authorizeddelegates in the state, if any, at the time of the filing of the licenseapplication;

 

(vi) A sample authorized delegate contract, if applicable;

 

(vii) A sample form of payment instrument, if applicable;

 

(viii) The location at which the applicant and its authorizeddelegates, if any, propose to conduct the licensed activities in the state; and

 

(ix) The name and address of the clearing bank on which paymentinstruments will be drawn or through which the payment instruments will bepayable.

 

(b) If the applicant is a corporation, the applicant shall alsoprovide:

 

(i) The date of the applicant's incorporation and state ofincorporation;

 

(ii) A certificate of good standing from the state in which theapplicant was incorporated;

 

(iii) A description of the corporate structure of the applicant,including the identity of any parent or subsidiary of the applicant and thedisclosure of whether any parent or subsidiary is publicly traded on any stockexchange;

 

(iv) The name, business and residence address and employmenthistory for the past five (5) years of the applicant's executive officers andthe officer or manager who will be in charge of the applicant's licensedactivities in this state;

 

(v) The name, business and residence address, and employmenthistory for the period five (5) years prior to the date of the application ofany key shareholder of the applicant;

 

(vi) The history of material litigation and criminal convictionsfor the five (5) year period prior to the date of the application of everyexecutive officer or key shareholder of the applicant;

 

(vii) A copy of the applicant's most recent audited financialstatement including balance sheet, statement of income or loss, statement ofchanges in shareholder equity and statement of changes in financial positionand if available, the applicant's audited financial statements for theimmediately preceding two (2) year period. Provided, if the applicant is awholly owned subsidiary of another corporation, the applicant may submit eitherthe parent corporation's consolidated audited financial statements for thecurrent year and for the immediately preceding two (2) year period or the parentcorporation's Form 10K reports filed with the United States securities andexchange commission for the prior three (3) years in lieu of the applicant'sfinancial statements. If the applicant is a wholly owned subsidiary of acorporation having its principal place of business outside the United States,similar documentation filed with the parent corporation's non United Statesregulator may be submitted to satisfy this provision; and

 

(viii) Copies of all filings, if any, made by the applicant withthe United States securities and exchange commission or with a similarregulator in a country other than the United States, within the year precedingthe date of filing of the application.

 

(c) If the applicant is not a corporation, the applicant shallalso provide:

 

(i) The name, business and residence address, personalfinancial statement and employment history for the past five (5) years, of eachprincipal of the applicant and the name, business and residence address andemployment history for the past five (5) years of any other person or personswho will be in charge of the applicant's licensed activities;

 

(ii) The place and date of the applicant's registration orqualification to do business in this state;

 

(iii) The history of material litigation and criminal convictionsfor the five (5) year period prior to the date of the application for eachindividual having any ownership interest in the applicant and each individualwho exercises supervisory responsibility with respect to the applicant'sactivities; and

 

(iv) Copies of the applicant's audited financial statementsincluding balance sheet, statement of income or loss and statement of changesin financial position for the current year and if available, for theimmediately preceding two (2) year period.

 

(d) The commissioner is authorized for good cause shown, towaive any requirement of this section with respect to any license applicationor to permit a license applicant to submit substituted information in itslicense application in lieu of the information required by this section.

 

40-22-109. Application fee.

 

Each application shall be accompanied by anonrefundable application fee not to exceed three thousand dollars ($3,000.00)for each license applied for, as set by rule of the commissioner.

 

40-22-110. Issuance of license.

 

(a) After the applicant files an application, the commissionershall investigate the financial condition and responsibility, financial andbusiness experience, character and general fitness of the applicant. Thecommissioner may conduct an on site investigation of the applicant, thereasonable cost of which shall be borne by the applicant. If the commissionerfinds that the applicant's business will be conducted honestly, fairly and in amanner commanding the confidence and trust of the community and that theapplicant has fulfilled the requirements imposed by this act and has paid therequired application fee, the commissioner shall issue a license to the applicantauthorizing the applicant to engage in the licensed activities in this statefor a term of one (1) year. If these requirements have not been met, thecommissioner shall deny the application in writing setting forth the reasonsfor the denial.

 

(b) The commissioner shall approve or deny every applicationfor an original license within one hundred twenty (120) days from the date acomplete application is submitted, provided the time period may be extendedwith written consent of the applicant. The commissioner shall notify theapplicant of the date when the application is deemed complete. In the absenceof approval or denial of the application within time period allowed orconsented to, the application is deemed approved and the commissioner shallissue the license effective as of the first day after the one hundred twenty(120) day or extended period has elapsed.

 

(c) Any applicant aggrieved by a denial issued by thecommissioner under this section may at any time within thirty (30) days fromthe date of receipt of written notice of the denial request a hearing beforethe commissioner.

 

40-22-111. Renewal of license and annual report.

 

(a) Every year on October 1 each licensee shall pay an annualrenewal fee not to exceed two thousand dollars ($2,000.00), plus not more thanone hundred dollars ($100.00) for each authorized delegate not to exceed seventhousand dollars ($7,000.00), as set by rule of the commissioner.

 

(b) The renewal fee shall be accompanied by a report, in a formapproved by the commissioner, which shall include:

 

(i) A copy of the licensee's most recent audited consolidatedannual financial statement including balance sheet, statement of income orloss, statement of changes in shareholder's equity and statement of changes infinancial position, or in the case of a licensee that is a wholly ownedsubsidiary of another corporation, the consolidated audited annual financial statementof the parent corporation may be filed in lieu of the licensee's audited annualfinancial statement;

 

(ii) For the most recent quarter for which data is availableprior to the date of the filing of the renewal application, but in no eventmore than one hundred twenty (120) days prior to the renewal date, the licenseeshall provide the number of payment instruments sold by the licensee in thestate, the dollar amount of those instruments and the dollar amount of thoseinstruments currently outstanding;

 

(iii) Any material changes to any of the information submitted bythe licensee on its original application which have not previously beenreported to the commissioner on any other report required to be filed underthis act;

 

(iv) A list of the licensee's permissible investments;

 

(v) A list of the locations, if any, within this state at whichbusiness regulated by this act is being conducted by either the licensee or itsauthorized delegates;

 

(vi) The commissioner is authorized for good cause shown towaive any requirement of this section with respect to any license renewalapplication or to permit a license renewal applicant to submit substitutedinformation in its license renewal application in lieu of the informationrequired by this section.

 

(c) A licensee that has not filed a renewal report or paid itsrenewal fee by the renewal filing deadline and has not been granted anextension of time to do so by the commissioner, shall have its licensesuspended on the renewal date. The licensee has thirty (30) days after itslicense is suspended in which to file a renewal report and pay the renewal fee.

 

40-22-112. Licensee liability.

 

A licensee's liability to any person for amoney transmission conducted on that person's behalf by the licensee or anauthorized delegate shall be limited to the amount of money transmitted or theface amount of the payment instrument or stored value purchased.

 

40-22-113. Extraordinary reporting requirements.

 

(a) Within fifteen (15) business days of the occurrence of anyone (1) of the events listed in this subsection, a licensee shall file awritten report with the commissioner describing the event and its expectedimpact on the licensee's activities in the state:

 

(i) Any material changes in information provided in alicensee's application or renewal report;

 

(ii) The filing for bankruptcy or reorganization by thelicensee;

 

(iii) The institution of revocation or suspension proceedingsagainst the licensee by any state or governmental authority with regard to thelicensee's money transmission activities;

 

(iv) Any felony indictment or conviction of the licensee or anyof its executive officers related to money transmission activities.

 

40-22-114. Changes in control of a licensee.

 

(a) A licensee shall give the commissioner written notice of aproposed change of control within fifteen (15) business days after learning ofthe proposed change of control.

 

(b) The commissioner may require the licensee to provideadditional information concerning the proposed persons in control of thelicensee. The additional information shall be limited to the same typesrequired of the licensee or persons in control of the licensee as part of itsoriginal license or renewal application.

 

(c) The licensee shall reapply and submit the required feesestablished by rule, not to exceed three thousand dollars ($3,000.00) for a newlicense upon a change in the control of the licensee as determined by thecommissioner. The license is not transferable nor assignable to the new personsin control of the licensee.

 

(d) The following persons are exempt from the requirements ofsubsections (a) through (c) of this section, but the licensee shall notify thecommissioner of a change of control:

 

(i) A person that acts as a proxy for the sole purpose ofvoting at a designated meeting of the security holders or holders of votinginterests of a licensee or person in control of a licensee;

 

(ii) A person that acquires control of a licensee by devise or descent;

 

(iii) A person that acquires control as a personalrepresentative, custodian, guardian, conservator, or trustee, or as an officerappointed by a court of competent jurisdiction or by operation of law; and

 

(iv) A person that the commissioner by rule or order exempts inthe public interest.

 

(e) Subsection (a) of this section does not apply to publicofferings of securities.

 

(f) Before filing a request for approval to acquire control, aperson may request in writing a determination from the commissioner as towhether the person would be considered a person in control of a licensee uponconsummation of a proposed transaction. If the commissioner determines that theperson would not be a person in control of a licensee, the commissioner shallenter an order to that effect and the proposed person and transaction is notsubject to the requirements of subsections (a) through (c) of this section.

 

40-22-115. Examinations.

 

(a) The commissioner may conduct examinations of personslicensed under this act at intervals he deems necessary to determine whetherviolations of this act and other applicable laws, rules and regulationspertaining to money transmissions are occurring and the frequency andseriousness of the violations.

 

(b) Each licensee or person subject to examination orinvestigation under this act shall pay to the commissioner an amount assessedby the commissioner to cover the direct and indirect cost of examinations orinvestigations conducted pursuant to this section.

 

40-22-116. Maintenance of records.

 

(a) Each licensee shall make, keep and preserve the followingbooks, accounts and other records for a period of five (5) years and theserecords shall be open to inspection by the commissioner:

 

(i) A record of each payment instrument and stored value sold;

 

(ii) A general ledger, posted at least monthly, containing allassets, liability, capital, income and expense accounts;

 

(iii) Bank statements and bank reconciliation records;

 

(iv) Outstanding payment instruments and stored value;

 

(v) Records of each payment instrument and stored value paid;

 

(vi) A list of the names and addresses of all authorizeddelegates; and

 

(vii) Any other records the commissioner reasonably requires byrule.

 

(b) The records required under this section may be maintainedin photographic, electronic or other similar form.

 

(c) Records may be maintained at a location other than withinthis state so long as they are made accessible to the commissioner upon seven(7) business days written notice.

 

40-22-117. Confidentiality of records; exception.

 

(a) Except as provided in subsection (b) of this section, allinformation or reports obtained by the commissioner from an applicant, licenseeor authorized delegate are confidential.

 

(b) The commissioner may disclose confidential information toofficials and examiners in other states or to federal regulatory authorities orto appropriate prosecuting attorneys.

 

(c) This section does not prohibit the commissioner fromdisclosing to the public a list of persons licensed under this act or theaggregated financial data on those licensees.

 

40-22-118. Authorized delegate contracts.

 

(a) A licensee shall designate an authorized delegate byexpress written contract including the following:

 

(i) That the licensee appoints the person as its delegate withauthority to engage in money transmission on behalf of the licensee;

 

(ii) That neither a licensee nor an authorized delegate mayauthorize subdelegates without the written consent of the commissioner; and

 

(iii) That authorized delegates are subject to supervision andregulation by the commissioner.

 

40-22-119. Authorized delegate conduct.

 

(a) An authorized delegate shall not make any fraudulent orfalse statement or misrepresentation to a licensee or to the commissioner.

 

(b) All money transmission activities conducted by anauthorized delegate shall be in strict accord with the licensee's writtenprocedures provided to the authorized delegate.

 

(c) An authorized delegate shall remit all money owing to thelicensee in accordance with the terms of the contract between the licensee andthe authorized delegate.

 

(d) An authorized delegate is deemed to consent to thecommissioner's inspection with or without prior notice to the licensee orauthorized delegate pursuant to W.S. 40-22-115.

 

40-22-120. License suspension or revocation.

 

(a) The commissioner may suspend or revoke a licensee's licenseif the commissioner finds that:

 

(i) Any fact or condition exists that, if it had existed at thetime when the licensee applied for its license, would have been grounds fordenying the application;

 

(ii) The licensee's net worth becomes inadequate and thelicensee after ten (10) business days written notice from the commissioner,fails to remedy the deficiency;

 

(iii) The licensee knowingly violates any material provision ofthis act or any rule or order validly promulgated by the commissioner;

 

(iv) The licensee is conducting its business in an unsafe orunsound manner;

 

(v) The licensee is insolvent;

 

(vi) The licensee has suspended payment of its obligations, hasmade an assignment for the benefit of its creditors or has admitted in writingits inability to pay its debts as they become due;

 

(vii) The licensee has applied for an adjudication of bankruptcy,reorganization, arrangement or other relief under any bankruptcy;

 

(viii) The licensee refuses to permit the commissioner to make anyexamination authorized by this act;

 

(ix) The licensee willfully fails to make any report required bythis act;

 

(x) The competence, experience, character or general fitness ofthe licensee indicates that it is not in the public interest to permit thelicensee to continue to conduct business.

 

40-22-121. Suspension or revocation of authorized delegates.

 

(a) The commissioner may issue an order to the licenseesuspending or revoking the designation of an authorized delegate if thecommissioner finds that:

 

(i) The authorized delegate violated this act or a rule adoptedor an order issued under this act;

 

(ii) The authorized delegate has not cooperated with anexamination or investigation by the commissioner;

 

(iii) The authorized delegate has engaged in fraud, intentionalmisrepresentation or gross negligence;

 

(iv) The authorized delegate has been convicted of a violationof a state or federal money laundering statute;

 

(v) The competence, experience, character or general fitness ofthe authorized delegate or a person in control of the authorized delegateindicates that it is not in the public interest to permit the authorizeddelegate to provide money services; or

 

(vi) The authorized delegate has engaged in an unsafe or unsoundpractice.

 

(b) In determining whether an authorized delegate has engagedin an unsafe or unsound practice the commissioner may consider the size andcondition of the authorized delegate's provision of money services, themagnitude of the loss, the gravity of the violation of this act and theprevious conduct of the authorized delegate.

 

(c) An authorized delegate may apply for relief from asuspension or revocation designation as an authorized delegate according toprocedures prescribed by the commissioner.

 

40-22-122. Orders to cease and desist.

 

(a) If the commissioner determines that a violation of this actor of a rule adopted or an order issued under this act by a licensee orauthorized delegate is likely to cause immediate and irreparable harm to thelicensee, its customers or the public as a result of the violation or causeinsolvency or significant dissipation of assets of the licensee, thecommissioner may issue an order requiring the licensee or authorized delegateto cease and desist from the violation. The order becomes effective uponservice upon the licensee or authorized delegate.

 

(b) The commissioner may issue an order against a licensee tocease and desist from providing money transmission services through anauthorized delegate that is the subject of a separate order pursuant to W.S.40-22-121 by the commissioner.

 

(c) An order to cease and desist remains effective andenforceable pending the completion of an administrative proceeding pursuant toWyoming Administrative Procedure Act.

 

40-22-123. Consent orders.

 

The commissioner may enter into a consentorder at any time with a person to resolve a matter arising under this act. Aconsent order shall be signed by the person to whom it is issued or by theperson's authorized representative and shall indicate agreement with the termscontained in the order. A consent order may provide that it does notconstitute an admission by a person that this act or a rule adopted or an orderissued under this act has been violated.

 

40-22-124. Civil penalties.

 

The commissioner may impose a civil penaltyupon a person who violates this act or a rule adopted or an order issued underthis act in an amount not to exceed five hundred dollars ($500.00) per day foreach day the violation is outstanding, plus the state's costs and expenses forthe investigation and prosecution of the matter, including reasonableattorney's fees.

 

40-22-125. Criminal penalties.

 

(a) A person who intentionally makes a false statement,misrepresentation or false certification in a record filed or required to bemaintained under this act or who intentionally makes a false entry or omits amaterial entry in the record is guilty of a felony, punishable for not lessthan three (3) years imprisonment or a fine of not less than ten thousand dollars($10,000.00), or both.

 

(b) An individual who knowingly engages in any activity forwhich a license is required under this act without being licensed under thisact is guilty of a felony punishable for not less than three (3) yearsimprisonment or a fine of not less than ten thousand dollars ($10,000.00), orboth.

 

40-22-126. Unlicensed persons.

 

(a) If the commissioner has reason to believe that a person hasviolated or is violating W.S. 40-22-103 of this act the commissioner may issuean order to show cause why an order to cease and desist should not issuerequiring that the person cease and desist from the violation of W.S.40-22-103.

 

(b) In an emergency, the commissioner may petition the districtcourt for the issuance of a temporary restraining order.

 

(c) An order to cease and desist becomes effective upon serviceupon the person.

 

(d) An order to cease and desist remains effective andenforceable pending the completion of an administrative proceeding pursuant toW.S. 40-22-127 and 40-22-128.

 

(e) A person served with an order to cease and desist forviolating W.S. 40-22-103 may petition the district court for a judicial ordersetting aside, limiting, or suspending the enforcement, operation, oreffectiveness of the order pending the completion of an administrativeproceeding pursuant to W.S. 40-22-127 and 40-22-128.

 

(f) The commissioner shall commence a contested case proceedingwithin twenty (20) days after issuing an order to cease and desist.

 

40-22-127. Administrative procedures.

 

All administrative proceedings under thisact shall be conducted in accordance with the Wyoming Administrative ProcedureAct.

 

40-22-128. Hearings.

 

Except as otherwise provided in W.S.40-22-111(c) and 40-22-122(c), the commissioner may not suspend or revoke alicense, issue an order to cease and desist, suspend or revoke the designationof an authorized delegate, or assess a civil penalty without notice and anopportunity to be heard. The commissioner shall also hold a hearing whenrequested to do so by an applicant whose application for a license is denied.

 

40-22-129. Rulemaking and deposit of fees.

 

(a) The commissioner shall promulgate all necessary rules toimplement and administer this act.

 

(b) All application, renewal and licensing fees shall bedeposited by the commissioner with the state treasurer into the financialinstitutions administration account.

 

State Codes and Statutes

Statutes > Wyoming > Title40 > Chapter22

CHAPTER 22 - WYOMING MONEY TRANSMITTERS ACT

 

40-22-101. Short title.

 

This act may be cited as the "WyomingMoney Transmitters Act."

 

40-22-102. Definitions.

 

(a) As used in this act:

 

(i) "Applicant" means a person filing an applicationfor a license;

 

(ii) "Authorized delegate" means an entity designatedby the licensee to engage in the business of transmitting money on behalf of alicensee;

 

(iii) "Commissioner" means the state bankingcommissioner;

 

(iv) "Control" means the power to vote or ownership oftwenty-five percent (25%) or more of the outstanding voting securities of alicensee or controlling person. To determine the percentage of a licenseecontrolled by any person, there shall be aggregated with the person's interestthe interest of any other person controlled by such person or by any spouse,parent or child of the person;

 

(v) "Controlling person" means any person in controlof a licensee;

 

(vi) "Division" means the division of banking;

 

(vii) "Electronic instrument" means a card or other tangibleobject for the transmission or payment of money which contains a microprocessorchip, magnetic stripe or other means for the storage of information that isprefunded and for which the value is decremented upon each use, but does notinclude a card or other tangible object that is redeemable by the issuer ingoods or services;

 

(viii) "Executive officer" means the licensee'spresident, chairman of the executive committee, senior officer responsible forthe licensee's business, chief financial officer and any other person whoperforms similar functions;

 

(ix) "Key shareholder" means any person, or group ofpersons acting in concert, who is the owner of twenty-five percent (25%) ormore of any voting class of an applicant's stock;

 

(x) "Licensee" means a person licensed under thisact;

 

(xi) "Material litigation" means any litigation thataccording to generally accepted accounting principles, is deemed significant toan applicant's or licensee's financial health and is referenced in theapplicant's or licensee's annual audited financial statements, report toshareholders or similar documents;

 

(xii) "Monetary value" means a medium of exchangewhether or not redeemable in money;

 

(xiii) "Money transmission" means to engage in businessto sell or issue payment instruments, stored value or receive money or monetaryvalue for transmission to a location within or outside the United States by anyand all means, including but not limited to wire, facsimile or electronictransfer;

 

(xiv) "Outstanding payment instrument" means anypayment instrument issued by the licensee which has been sold in the UnitedStates directly by the licensee or any payment instrument issued by thelicensee which has been sold by an authorized delegate of the licensee in theUnited States, which has been reported to the licensee as having been sold andwhich has not yet been paid by or for the licensee;

 

(xv) "Payment instrument" means any electronic orwritten check, draft, money order, travelers check or other electronic orwritten instrument or order for the transmission or payment of money, sold orissued to one (1) or more persons, whether or not the instrument is negotiable.The term "payment instrument" does not include any credit cardvoucher, any letter of credit or any instrument which is redeemable by theissuer in goods or services;

 

(xvi) "Permissible investments" means:

 

(A) Cash;

 

(B) Certificates of deposit or other debt obligations of afinancial institution, either domestic or foreign;

 

(C) Bills of exchange or time drafts drawn on and accepted by acommercial bank, otherwise known as bankers' acceptances, which are eligiblefor purchase by member banks of the federal reserve system;

 

(D) Any investment securities bearing a rating of one (1) ofthe four (4) highest grades as defined by a nationally recognized organizationthat rates securities;

 

(E) Investment securities that are obligations of the UnitedStates, its agencies or instrumentalities, or obligations that are guaranteedfully as to principal and interest of the United States, or any obligations ofany state, municipality or any political subdivision thereof;

 

(F) Shares in a money market mutual fund, interest bearingbills, notes or bonds, debentures or stock traded on any national securitiesexchange or on a national over the counter market, or mutual funds primarilycomposed of such securities or a fund composed of one (1) or more permissibleinvestments as set forth in this paragraph;

 

(G) Any demand borrowing agreement made to a corporation or asubsidiary of a corporation whose capital stock is listed on a nationalexchange;

 

(H) Receivables which are due to a licensee from its authorizeddelegates pursuant to a contract described in W.S. 40-22-118 which are not pastdue or doubtful of collection; or

 

(J) Any other investments or security device approved by thecommissioner.

 

(xvii) "Remit" means either to make direct payment ofthe funds to the licensee or its representatives authorized to receive thosefunds, or to deposit the funds in a bank, credit union or savings and loanassociation or other similar financial institution in an account specified bythe licensee;

 

(xviii) "Stored value" means monetary value that isevidenced by an electronic record.

 

40-22-103. License required.

 

(a) With the exception of those persons exempt pursuant to W.S.40-22-104, on and after October 1, 2003, no person shall engage in the businessof money transmission without a license. The division shall regulate moneytransmitters and carry out the provisions of this act.

 

(b) A person is engaged in the business of money transmissionif the person regularly advertises, offers or provides services to Wyomingresidents, through any medium including, but not limited to, internet or otherelectronic means.

 

(c) A licensee with a physical presence in this state mayconduct its business at one (1) or more locations, directly or indirectlyowned, or through one (1) or more authorized delegates, or both, pursuant to asingle license granted to the licensee, provided that for each business name, aseparate license shall be required.

 

(d) Every licensee and authorized delegate shall comply withthe Bank Secrecy Act, 12 U.S.C. 1951 et seq.

 

(e) Authorized delegates of a licensee, acting within the scopeof authority conferred by a written contract as described in W.S. 40-22-118shall not be required to obtain a license.

 

40-22-104. Exemptions.

 

(a) This act shall not apply to:

 

(i) The United States or any department, agency, orinstrumentality thereof;

 

(ii) The United States post office;

 

(iii) The state or any political subdivisions thereof;

 

(iv) Banks, bank holding companies, credit unions, building andloan associations, savings and loan associations, savings banks or mutual banksorganized under the laws of any state or the United States provided that theydo not issue or sell payment instruments through authorized delegates who arenot banks, bank holding companies, credit unions, building and loanassociations, savings and loan associations, savings banks or mutual banks; and

 

(v) Electronic transfer of government benefits for any federal,state or county governmental agency as defined in Federal Reserve BoardRegulation E by a contractor for and on behalf of the United States or anydepartment, agency or instrumentality thereof, or any state or any politicalsubdivisions thereof.

 

40-22-105. License requirements.

 

(a) Each licensee shall at all times have a net worth of notless than twenty-five thousand dollars ($25,000.00), as calculated inaccordance with generally accepted accounting principles.

 

(b) Every corporate applicant at the time of filing of anapplication for a license and at all times after a license is issued, shall bein good standing in the state of its incorporation. All noncorporateapplicants shall at the time of the filing of an application for a license andat all times after a license is issued, be registered or qualified to dobusiness in the state.

 

40-22-106. Bond or other security device.

 

(a) Each application shall be accompanied by a surety bond,irrevocable letter of credit or other similar security device acceptable to thecommissioner in the amount of ten thousand dollars ($10,000.00) or two andone-half (2 ) times the outstanding payment instruments, whichever is greater. The commissioner may increase the required amount of the bond or securitydevice to a maximum of five hundred thousand dollars ($500,000.00) upon thebasis of the impaired financial condition of a licensee as evidenced by areduction in net worth, financial losses or other relevant criteria. The securitydevice shall be in a form satisfactory to the commissioner and shall run to thestate for the benefit of any claimants against the licensee to secure thefaithful performance of the obligations of the licensee with respect to thereceipt, handling, transmission and payment of money in connection with thesale and issuance of payment instruments or transmission of money. In the caseof a bond, the aggregate liability of the surety in no event shall exceed theprincipal sum of the bond. Claimants against the licensee may bring suitdirectly on the security device or the commissioner may bring suit on behalf ofthe claimants either in one (1) action or in successive actions.

 

(b) In lieu of a security device or any portion of theprincipal thereof as required by this section, the licensee may deposit withthe commissioner or with banks in this state as the licensee may designate andthe commissioner may approve, cash, interest bearing stocks and bonds, notes,debentures or other obligations of the United States or any agency orinstrumentality thereof, or guaranteed by the United States, or of this stateor a political subdivision, or guaranteed by this state, to an aggregateamount, based upon principal amount or market value, whichever is lower, of notless than the amount of the security device or portion thereof. The securitiesor cash shall be deposited and held to secure the same obligations as would thesecurity device. The depositor shall be entitled to receive all interest anddividends and shall have the right with the approval of the commissioner, tosubstitute other securities for those deposited, and shall be required to do soon written order of the commissioner made for good cause shown.

 

(c) The security device shall remain in effect until cancellation,which may occur only after written notice to the commissioner thirty (30) daysprior to the effective date of cancellation. Cancellation shall not affect anyliability incurred or accrued during the thirty (30) day period.

 

(d) The security device shall remain in place for no longerthan five (5) years after the licensee ceases money transmission operations inthe state. The commissioner may permit the security device to be reduced oreliminated prior to the five (5) years to the extent that the amount of thelicensee's payment instruments outstanding in this state are reduced. Thecommissioner may also permit a licensee to substitute a letter of credit orother form of security device acceptable to the commissioner for the securitydevice in place at the time the licensee ceases money transmission operationsin the state.

 

40-22-107. Permissible investments and statutory trust.

 

(a) Each licensee shall at all times possess permissibleinvestments having an aggregate market value calculated in accordance withgenerally accepted accounting principles, of not less than the aggregate faceamount of all outstanding payment instruments and stored value issued or soldby the licensee in the United States. This requirement may be waived by the commissionerif the dollar volume of a licensee's outstanding payment instruments and storedvalue does not exceed the bond or other security devices posted by the licenseepursuant to W.S. 40-22-106.

 

(b) Permissible investments even if commingled with otherassets of the licensee, shall be deemed by operation of law to be held in trustfor the benefit of the purchasers and holders of the licensee's outstandingpayment instruments in the event of the bankruptcy of the licensee.

 

40-22-108. Application for license.

 

(a) Each application for a license shall be made in writing andin a form prescribed by the commissioner. Each application shall include thefollowing:

 

(i) The exact name of the applicant, the applicant's principaladdress, any fictitious or trade name used by the applicant in the conduct ofits business and the location of the applicant's business records;

 

(ii) The applicant's history of material litigation and criminalconvictions for the five (5) year period prior to the date of the application;

 

(iii) A description of the activities conducted by the applicantand a history of operations;

 

(iv) A description of the business activities in which theapplicant seeks to be engaged in the state;

 

(v) A list identifying the applicant's proposed authorizeddelegates in the state, if any, at the time of the filing of the licenseapplication;

 

(vi) A sample authorized delegate contract, if applicable;

 

(vii) A sample form of payment instrument, if applicable;

 

(viii) The location at which the applicant and its authorizeddelegates, if any, propose to conduct the licensed activities in the state; and

 

(ix) The name and address of the clearing bank on which paymentinstruments will be drawn or through which the payment instruments will bepayable.

 

(b) If the applicant is a corporation, the applicant shall alsoprovide:

 

(i) The date of the applicant's incorporation and state ofincorporation;

 

(ii) A certificate of good standing from the state in which theapplicant was incorporated;

 

(iii) A description of the corporate structure of the applicant,including the identity of any parent or subsidiary of the applicant and thedisclosure of whether any parent or subsidiary is publicly traded on any stockexchange;

 

(iv) The name, business and residence address and employmenthistory for the past five (5) years of the applicant's executive officers andthe officer or manager who will be in charge of the applicant's licensedactivities in this state;

 

(v) The name, business and residence address, and employmenthistory for the period five (5) years prior to the date of the application ofany key shareholder of the applicant;

 

(vi) The history of material litigation and criminal convictionsfor the five (5) year period prior to the date of the application of everyexecutive officer or key shareholder of the applicant;

 

(vii) A copy of the applicant's most recent audited financialstatement including balance sheet, statement of income or loss, statement ofchanges in shareholder equity and statement of changes in financial positionand if available, the applicant's audited financial statements for theimmediately preceding two (2) year period. Provided, if the applicant is awholly owned subsidiary of another corporation, the applicant may submit eitherthe parent corporation's consolidated audited financial statements for thecurrent year and for the immediately preceding two (2) year period or the parentcorporation's Form 10K reports filed with the United States securities andexchange commission for the prior three (3) years in lieu of the applicant'sfinancial statements. If the applicant is a wholly owned subsidiary of acorporation having its principal place of business outside the United States,similar documentation filed with the parent corporation's non United Statesregulator may be submitted to satisfy this provision; and

 

(viii) Copies of all filings, if any, made by the applicant withthe United States securities and exchange commission or with a similarregulator in a country other than the United States, within the year precedingthe date of filing of the application.

 

(c) If the applicant is not a corporation, the applicant shallalso provide:

 

(i) The name, business and residence address, personalfinancial statement and employment history for the past five (5) years, of eachprincipal of the applicant and the name, business and residence address andemployment history for the past five (5) years of any other person or personswho will be in charge of the applicant's licensed activities;

 

(ii) The place and date of the applicant's registration orqualification to do business in this state;

 

(iii) The history of material litigation and criminal convictionsfor the five (5) year period prior to the date of the application for eachindividual having any ownership interest in the applicant and each individualwho exercises supervisory responsibility with respect to the applicant'sactivities; and

 

(iv) Copies of the applicant's audited financial statementsincluding balance sheet, statement of income or loss and statement of changesin financial position for the current year and if available, for theimmediately preceding two (2) year period.

 

(d) The commissioner is authorized for good cause shown, towaive any requirement of this section with respect to any license applicationor to permit a license applicant to submit substituted information in itslicense application in lieu of the information required by this section.

 

40-22-109. Application fee.

 

Each application shall be accompanied by anonrefundable application fee not to exceed three thousand dollars ($3,000.00)for each license applied for, as set by rule of the commissioner.

 

40-22-110. Issuance of license.

 

(a) After the applicant files an application, the commissionershall investigate the financial condition and responsibility, financial andbusiness experience, character and general fitness of the applicant. Thecommissioner may conduct an on site investigation of the applicant, thereasonable cost of which shall be borne by the applicant. If the commissionerfinds that the applicant's business will be conducted honestly, fairly and in amanner commanding the confidence and trust of the community and that theapplicant has fulfilled the requirements imposed by this act and has paid therequired application fee, the commissioner shall issue a license to the applicantauthorizing the applicant to engage in the licensed activities in this statefor a term of one (1) year. If these requirements have not been met, thecommissioner shall deny the application in writing setting forth the reasonsfor the denial.

 

(b) The commissioner shall approve or deny every applicationfor an original license within one hundred twenty (120) days from the date acomplete application is submitted, provided the time period may be extendedwith written consent of the applicant. The commissioner shall notify theapplicant of the date when the application is deemed complete. In the absenceof approval or denial of the application within time period allowed orconsented to, the application is deemed approved and the commissioner shallissue the license effective as of the first day after the one hundred twenty(120) day or extended period has elapsed.

 

(c) Any applicant aggrieved by a denial issued by thecommissioner under this section may at any time within thirty (30) days fromthe date of receipt of written notice of the denial request a hearing beforethe commissioner.

 

40-22-111. Renewal of license and annual report.

 

(a) Every year on October 1 each licensee shall pay an annualrenewal fee not to exceed two thousand dollars ($2,000.00), plus not more thanone hundred dollars ($100.00) for each authorized delegate not to exceed seventhousand dollars ($7,000.00), as set by rule of the commissioner.

 

(b) The renewal fee shall be accompanied by a report, in a formapproved by the commissioner, which shall include:

 

(i) A copy of the licensee's most recent audited consolidatedannual financial statement including balance sheet, statement of income orloss, statement of changes in shareholder's equity and statement of changes infinancial position, or in the case of a licensee that is a wholly ownedsubsidiary of another corporation, the consolidated audited annual financial statementof the parent corporation may be filed in lieu of the licensee's audited annualfinancial statement;

 

(ii) For the most recent quarter for which data is availableprior to the date of the filing of the renewal application, but in no eventmore than one hundred twenty (120) days prior to the renewal date, the licenseeshall provide the number of payment instruments sold by the licensee in thestate, the dollar amount of those instruments and the dollar amount of thoseinstruments currently outstanding;

 

(iii) Any material changes to any of the information submitted bythe licensee on its original application which have not previously beenreported to the commissioner on any other report required to be filed underthis act;

 

(iv) A list of the licensee's permissible investments;

 

(v) A list of the locations, if any, within this state at whichbusiness regulated by this act is being conducted by either the licensee or itsauthorized delegates;

 

(vi) The commissioner is authorized for good cause shown towaive any requirement of this section with respect to any license renewalapplication or to permit a license renewal applicant to submit substitutedinformation in its license renewal application in lieu of the informationrequired by this section.

 

(c) A licensee that has not filed a renewal report or paid itsrenewal fee by the renewal filing deadline and has not been granted anextension of time to do so by the commissioner, shall have its licensesuspended on the renewal date. The licensee has thirty (30) days after itslicense is suspended in which to file a renewal report and pay the renewal fee.

 

40-22-112. Licensee liability.

 

A licensee's liability to any person for amoney transmission conducted on that person's behalf by the licensee or anauthorized delegate shall be limited to the amount of money transmitted or theface amount of the payment instrument or stored value purchased.

 

40-22-113. Extraordinary reporting requirements.

 

(a) Within fifteen (15) business days of the occurrence of anyone (1) of the events listed in this subsection, a licensee shall file awritten report with the commissioner describing the event and its expectedimpact on the licensee's activities in the state:

 

(i) Any material changes in information provided in alicensee's application or renewal report;

 

(ii) The filing for bankruptcy or reorganization by thelicensee;

 

(iii) The institution of revocation or suspension proceedingsagainst the licensee by any state or governmental authority with regard to thelicensee's money transmission activities;

 

(iv) Any felony indictment or conviction of the licensee or anyof its executive officers related to money transmission activities.

 

40-22-114. Changes in control of a licensee.

 

(a) A licensee shall give the commissioner written notice of aproposed change of control within fifteen (15) business days after learning ofthe proposed change of control.

 

(b) The commissioner may require the licensee to provideadditional information concerning the proposed persons in control of thelicensee. The additional information shall be limited to the same typesrequired of the licensee or persons in control of the licensee as part of itsoriginal license or renewal application.

 

(c) The licensee shall reapply and submit the required feesestablished by rule, not to exceed three thousand dollars ($3,000.00) for a newlicense upon a change in the control of the licensee as determined by thecommissioner. The license is not transferable nor assignable to the new personsin control of the licensee.

 

(d) The following persons are exempt from the requirements ofsubsections (a) through (c) of this section, but the licensee shall notify thecommissioner of a change of control:

 

(i) A person that acts as a proxy for the sole purpose ofvoting at a designated meeting of the security holders or holders of votinginterests of a licensee or person in control of a licensee;

 

(ii) A person that acquires control of a licensee by devise or descent;

 

(iii) A person that acquires control as a personalrepresentative, custodian, guardian, conservator, or trustee, or as an officerappointed by a court of competent jurisdiction or by operation of law; and

 

(iv) A person that the commissioner by rule or order exempts inthe public interest.

 

(e) Subsection (a) of this section does not apply to publicofferings of securities.

 

(f) Before filing a request for approval to acquire control, aperson may request in writing a determination from the commissioner as towhether the person would be considered a person in control of a licensee uponconsummation of a proposed transaction. If the commissioner determines that theperson would not be a person in control of a licensee, the commissioner shallenter an order to that effect and the proposed person and transaction is notsubject to the requirements of subsections (a) through (c) of this section.

 

40-22-115. Examinations.

 

(a) The commissioner may conduct examinations of personslicensed under this act at intervals he deems necessary to determine whetherviolations of this act and other applicable laws, rules and regulationspertaining to money transmissions are occurring and the frequency andseriousness of the violations.

 

(b) Each licensee or person subject to examination orinvestigation under this act shall pay to the commissioner an amount assessedby the commissioner to cover the direct and indirect cost of examinations orinvestigations conducted pursuant to this section.

 

40-22-116. Maintenance of records.

 

(a) Each licensee shall make, keep and preserve the followingbooks, accounts and other records for a period of five (5) years and theserecords shall be open to inspection by the commissioner:

 

(i) A record of each payment instrument and stored value sold;

 

(ii) A general ledger, posted at least monthly, containing allassets, liability, capital, income and expense accounts;

 

(iii) Bank statements and bank reconciliation records;

 

(iv) Outstanding payment instruments and stored value;

 

(v) Records of each payment instrument and stored value paid;

 

(vi) A list of the names and addresses of all authorizeddelegates; and

 

(vii) Any other records the commissioner reasonably requires byrule.

 

(b) The records required under this section may be maintainedin photographic, electronic or other similar form.

 

(c) Records may be maintained at a location other than withinthis state so long as they are made accessible to the commissioner upon seven(7) business days written notice.

 

40-22-117. Confidentiality of records; exception.

 

(a) Except as provided in subsection (b) of this section, allinformation or reports obtained by the commissioner from an applicant, licenseeor authorized delegate are confidential.

 

(b) The commissioner may disclose confidential information toofficials and examiners in other states or to federal regulatory authorities orto appropriate prosecuting attorneys.

 

(c) This section does not prohibit the commissioner fromdisclosing to the public a list of persons licensed under this act or theaggregated financial data on those licensees.

 

40-22-118. Authorized delegate contracts.

 

(a) A licensee shall designate an authorized delegate byexpress written contract including the following:

 

(i) That the licensee appoints the person as its delegate withauthority to engage in money transmission on behalf of the licensee;

 

(ii) That neither a licensee nor an authorized delegate mayauthorize subdelegates without the written consent of the commissioner; and

 

(iii) That authorized delegates are subject to supervision andregulation by the commissioner.

 

40-22-119. Authorized delegate conduct.

 

(a) An authorized delegate shall not make any fraudulent orfalse statement or misrepresentation to a licensee or to the commissioner.

 

(b) All money transmission activities conducted by anauthorized delegate shall be in strict accord with the licensee's writtenprocedures provided to the authorized delegate.

 

(c) An authorized delegate shall remit all money owing to thelicensee in accordance with the terms of the contract between the licensee andthe authorized delegate.

 

(d) An authorized delegate is deemed to consent to thecommissioner's inspection with or without prior notice to the licensee orauthorized delegate pursuant to W.S. 40-22-115.

 

40-22-120. License suspension or revocation.

 

(a) The commissioner may suspend or revoke a licensee's licenseif the commissioner finds that:

 

(i) Any fact or condition exists that, if it had existed at thetime when the licensee applied for its license, would have been grounds fordenying the application;

 

(ii) The licensee's net worth becomes inadequate and thelicensee after ten (10) business days written notice from the commissioner,fails to remedy the deficiency;

 

(iii) The licensee knowingly violates any material provision ofthis act or any rule or order validly promulgated by the commissioner;

 

(iv) The licensee is conducting its business in an unsafe orunsound manner;

 

(v) The licensee is insolvent;

 

(vi) The licensee has suspended payment of its obligations, hasmade an assignment for the benefit of its creditors or has admitted in writingits inability to pay its debts as they become due;

 

(vii) The licensee has applied for an adjudication of bankruptcy,reorganization, arrangement or other relief under any bankruptcy;

 

(viii) The licensee refuses to permit the commissioner to make anyexamination authorized by this act;

 

(ix) The licensee willfully fails to make any report required bythis act;

 

(x) The competence, experience, character or general fitness ofthe licensee indicates that it is not in the public interest to permit thelicensee to continue to conduct business.

 

40-22-121. Suspension or revocation of authorized delegates.

 

(a) The commissioner may issue an order to the licenseesuspending or revoking the designation of an authorized delegate if thecommissioner finds that:

 

(i) The authorized delegate violated this act or a rule adoptedor an order issued under this act;

 

(ii) The authorized delegate has not cooperated with anexamination or investigation by the commissioner;

 

(iii) The authorized delegate has engaged in fraud, intentionalmisrepresentation or gross negligence;

 

(iv) The authorized delegate has been convicted of a violationof a state or federal money laundering statute;

 

(v) The competence, experience, character or general fitness ofthe authorized delegate or a person in control of the authorized delegateindicates that it is not in the public interest to permit the authorizeddelegate to provide money services; or

 

(vi) The authorized delegate has engaged in an unsafe or unsoundpractice.

 

(b) In determining whether an authorized delegate has engagedin an unsafe or unsound practice the commissioner may consider the size andcondition of the authorized delegate's provision of money services, themagnitude of the loss, the gravity of the violation of this act and theprevious conduct of the authorized delegate.

 

(c) An authorized delegate may apply for relief from asuspension or revocation designation as an authorized delegate according toprocedures prescribed by the commissioner.

 

40-22-122. Orders to cease and desist.

 

(a) If the commissioner determines that a violation of this actor of a rule adopted or an order issued under this act by a licensee orauthorized delegate is likely to cause immediate and irreparable harm to thelicensee, its customers or the public as a result of the violation or causeinsolvency or significant dissipation of assets of the licensee, thecommissioner may issue an order requiring the licensee or authorized delegateto cease and desist from the violation. The order becomes effective uponservice upon the licensee or authorized delegate.

 

(b) The commissioner may issue an order against a licensee tocease and desist from providing money transmission services through anauthorized delegate that is the subject of a separate order pursuant to W.S.40-22-121 by the commissioner.

 

(c) An order to cease and desist remains effective andenforceable pending the completion of an administrative proceeding pursuant toWyoming Administrative Procedure Act.

 

40-22-123. Consent orders.

 

The commissioner may enter into a consentorder at any time with a person to resolve a matter arising under this act. Aconsent order shall be signed by the person to whom it is issued or by theperson's authorized representative and shall indicate agreement with the termscontained in the order. A consent order may provide that it does notconstitute an admission by a person that this act or a rule adopted or an orderissued under this act has been violated.

 

40-22-124. Civil penalties.

 

The commissioner may impose a civil penaltyupon a person who violates this act or a rule adopted or an order issued underthis act in an amount not to exceed five hundred dollars ($500.00) per day foreach day the violation is outstanding, plus the state's costs and expenses forthe investigation and prosecution of the matter, including reasonableattorney's fees.

 

40-22-125. Criminal penalties.

 

(a) A person who intentionally makes a false statement,misrepresentation or false certification in a record filed or required to bemaintained under this act or who intentionally makes a false entry or omits amaterial entry in the record is guilty of a felony, punishable for not lessthan three (3) years imprisonment or a fine of not less than ten thousand dollars($10,000.00), or both.

 

(b) An individual who knowingly engages in any activity forwhich a license is required under this act without being licensed under thisact is guilty of a felony punishable for not less than three (3) yearsimprisonment or a fine of not less than ten thousand dollars ($10,000.00), orboth.

 

40-22-126. Unlicensed persons.

 

(a) If the commissioner has reason to believe that a person hasviolated or is violating W.S. 40-22-103 of this act the commissioner may issuean order to show cause why an order to cease and desist should not issuerequiring that the person cease and desist from the violation of W.S.40-22-103.

 

(b) In an emergency, the commissioner may petition the districtcourt for the issuance of a temporary restraining order.

 

(c) An order to cease and desist becomes effective upon serviceupon the person.

 

(d) An order to cease and desist remains effective andenforceable pending the completion of an administrative proceeding pursuant toW.S. 40-22-127 and 40-22-128.

 

(e) A person served with an order to cease and desist forviolating W.S. 40-22-103 may petition the district court for a judicial ordersetting aside, limiting, or suspending the enforcement, operation, oreffectiveness of the order pending the completion of an administrativeproceeding pursuant to W.S. 40-22-127 and 40-22-128.

 

(f) The commissioner shall commence a contested case proceedingwithin twenty (20) days after issuing an order to cease and desist.

 

40-22-127. Administrative procedures.

 

All administrative proceedings under thisact shall be conducted in accordance with the Wyoming Administrative ProcedureAct.

 

40-22-128. Hearings.

 

Except as otherwise provided in W.S.40-22-111(c) and 40-22-122(c), the commissioner may not suspend or revoke alicense, issue an order to cease and desist, suspend or revoke the designationof an authorized delegate, or assess a civil penalty without notice and anopportunity to be heard. The commissioner shall also hold a hearing whenrequested to do so by an applicant whose application for a license is denied.

 

40-22-129. Rulemaking and deposit of fees.

 

(a) The commissioner shall promulgate all necessary rules toimplement and administer this act.

 

(b) All application, renewal and licensing fees shall bedeposited by the commissioner with the state treasurer into the financialinstitutions administration account.

 


State Codes and Statutes

State Codes and Statutes

Statutes > Wyoming > Title40 > Chapter22

CHAPTER 22 - WYOMING MONEY TRANSMITTERS ACT

 

40-22-101. Short title.

 

This act may be cited as the "WyomingMoney Transmitters Act."

 

40-22-102. Definitions.

 

(a) As used in this act:

 

(i) "Applicant" means a person filing an applicationfor a license;

 

(ii) "Authorized delegate" means an entity designatedby the licensee to engage in the business of transmitting money on behalf of alicensee;

 

(iii) "Commissioner" means the state bankingcommissioner;

 

(iv) "Control" means the power to vote or ownership oftwenty-five percent (25%) or more of the outstanding voting securities of alicensee or controlling person. To determine the percentage of a licenseecontrolled by any person, there shall be aggregated with the person's interestthe interest of any other person controlled by such person or by any spouse,parent or child of the person;

 

(v) "Controlling person" means any person in controlof a licensee;

 

(vi) "Division" means the division of banking;

 

(vii) "Electronic instrument" means a card or other tangibleobject for the transmission or payment of money which contains a microprocessorchip, magnetic stripe or other means for the storage of information that isprefunded and for which the value is decremented upon each use, but does notinclude a card or other tangible object that is redeemable by the issuer ingoods or services;

 

(viii) "Executive officer" means the licensee'spresident, chairman of the executive committee, senior officer responsible forthe licensee's business, chief financial officer and any other person whoperforms similar functions;

 

(ix) "Key shareholder" means any person, or group ofpersons acting in concert, who is the owner of twenty-five percent (25%) ormore of any voting class of an applicant's stock;

 

(x) "Licensee" means a person licensed under thisact;

 

(xi) "Material litigation" means any litigation thataccording to generally accepted accounting principles, is deemed significant toan applicant's or licensee's financial health and is referenced in theapplicant's or licensee's annual audited financial statements, report toshareholders or similar documents;

 

(xii) "Monetary value" means a medium of exchangewhether or not redeemable in money;

 

(xiii) "Money transmission" means to engage in businessto sell or issue payment instruments, stored value or receive money or monetaryvalue for transmission to a location within or outside the United States by anyand all means, including but not limited to wire, facsimile or electronictransfer;

 

(xiv) "Outstanding payment instrument" means anypayment instrument issued by the licensee which has been sold in the UnitedStates directly by the licensee or any payment instrument issued by thelicensee which has been sold by an authorized delegate of the licensee in theUnited States, which has been reported to the licensee as having been sold andwhich has not yet been paid by or for the licensee;

 

(xv) "Payment instrument" means any electronic orwritten check, draft, money order, travelers check or other electronic orwritten instrument or order for the transmission or payment of money, sold orissued to one (1) or more persons, whether or not the instrument is negotiable.The term "payment instrument" does not include any credit cardvoucher, any letter of credit or any instrument which is redeemable by theissuer in goods or services;

 

(xvi) "Permissible investments" means:

 

(A) Cash;

 

(B) Certificates of deposit or other debt obligations of afinancial institution, either domestic or foreign;

 

(C) Bills of exchange or time drafts drawn on and accepted by acommercial bank, otherwise known as bankers' acceptances, which are eligiblefor purchase by member banks of the federal reserve system;

 

(D) Any investment securities bearing a rating of one (1) ofthe four (4) highest grades as defined by a nationally recognized organizationthat rates securities;

 

(E) Investment securities that are obligations of the UnitedStates, its agencies or instrumentalities, or obligations that are guaranteedfully as to principal and interest of the United States, or any obligations ofany state, municipality or any political subdivision thereof;

 

(F) Shares in a money market mutual fund, interest bearingbills, notes or bonds, debentures or stock traded on any national securitiesexchange or on a national over the counter market, or mutual funds primarilycomposed of such securities or a fund composed of one (1) or more permissibleinvestments as set forth in this paragraph;

 

(G) Any demand borrowing agreement made to a corporation or asubsidiary of a corporation whose capital stock is listed on a nationalexchange;

 

(H) Receivables which are due to a licensee from its authorizeddelegates pursuant to a contract described in W.S. 40-22-118 which are not pastdue or doubtful of collection; or

 

(J) Any other investments or security device approved by thecommissioner.

 

(xvii) "Remit" means either to make direct payment ofthe funds to the licensee or its representatives authorized to receive thosefunds, or to deposit the funds in a bank, credit union or savings and loanassociation or other similar financial institution in an account specified bythe licensee;

 

(xviii) "Stored value" means monetary value that isevidenced by an electronic record.

 

40-22-103. License required.

 

(a) With the exception of those persons exempt pursuant to W.S.40-22-104, on and after October 1, 2003, no person shall engage in the businessof money transmission without a license. The division shall regulate moneytransmitters and carry out the provisions of this act.

 

(b) A person is engaged in the business of money transmissionif the person regularly advertises, offers or provides services to Wyomingresidents, through any medium including, but not limited to, internet or otherelectronic means.

 

(c) A licensee with a physical presence in this state mayconduct its business at one (1) or more locations, directly or indirectlyowned, or through one (1) or more authorized delegates, or both, pursuant to asingle license granted to the licensee, provided that for each business name, aseparate license shall be required.

 

(d) Every licensee and authorized delegate shall comply withthe Bank Secrecy Act, 12 U.S.C. 1951 et seq.

 

(e) Authorized delegates of a licensee, acting within the scopeof authority conferred by a written contract as described in W.S. 40-22-118shall not be required to obtain a license.

 

40-22-104. Exemptions.

 

(a) This act shall not apply to:

 

(i) The United States or any department, agency, orinstrumentality thereof;

 

(ii) The United States post office;

 

(iii) The state or any political subdivisions thereof;

 

(iv) Banks, bank holding companies, credit unions, building andloan associations, savings and loan associations, savings banks or mutual banksorganized under the laws of any state or the United States provided that theydo not issue or sell payment instruments through authorized delegates who arenot banks, bank holding companies, credit unions, building and loanassociations, savings and loan associations, savings banks or mutual banks; and

 

(v) Electronic transfer of government benefits for any federal,state or county governmental agency as defined in Federal Reserve BoardRegulation E by a contractor for and on behalf of the United States or anydepartment, agency or instrumentality thereof, or any state or any politicalsubdivisions thereof.

 

40-22-105. License requirements.

 

(a) Each licensee shall at all times have a net worth of notless than twenty-five thousand dollars ($25,000.00), as calculated inaccordance with generally accepted accounting principles.

 

(b) Every corporate applicant at the time of filing of anapplication for a license and at all times after a license is issued, shall bein good standing in the state of its incorporation. All noncorporateapplicants shall at the time of the filing of an application for a license andat all times after a license is issued, be registered or qualified to dobusiness in the state.

 

40-22-106. Bond or other security device.

 

(a) Each application shall be accompanied by a surety bond,irrevocable letter of credit or other similar security device acceptable to thecommissioner in the amount of ten thousand dollars ($10,000.00) or two andone-half (2 ) times the outstanding payment instruments, whichever is greater. The commissioner may increase the required amount of the bond or securitydevice to a maximum of five hundred thousand dollars ($500,000.00) upon thebasis of the impaired financial condition of a licensee as evidenced by areduction in net worth, financial losses or other relevant criteria. The securitydevice shall be in a form satisfactory to the commissioner and shall run to thestate for the benefit of any claimants against the licensee to secure thefaithful performance of the obligations of the licensee with respect to thereceipt, handling, transmission and payment of money in connection with thesale and issuance of payment instruments or transmission of money. In the caseof a bond, the aggregate liability of the surety in no event shall exceed theprincipal sum of the bond. Claimants against the licensee may bring suitdirectly on the security device or the commissioner may bring suit on behalf ofthe claimants either in one (1) action or in successive actions.

 

(b) In lieu of a security device or any portion of theprincipal thereof as required by this section, the licensee may deposit withthe commissioner or with banks in this state as the licensee may designate andthe commissioner may approve, cash, interest bearing stocks and bonds, notes,debentures or other obligations of the United States or any agency orinstrumentality thereof, or guaranteed by the United States, or of this stateor a political subdivision, or guaranteed by this state, to an aggregateamount, based upon principal amount or market value, whichever is lower, of notless than the amount of the security device or portion thereof. The securitiesor cash shall be deposited and held to secure the same obligations as would thesecurity device. The depositor shall be entitled to receive all interest anddividends and shall have the right with the approval of the commissioner, tosubstitute other securities for those deposited, and shall be required to do soon written order of the commissioner made for good cause shown.

 

(c) The security device shall remain in effect until cancellation,which may occur only after written notice to the commissioner thirty (30) daysprior to the effective date of cancellation. Cancellation shall not affect anyliability incurred or accrued during the thirty (30) day period.

 

(d) The security device shall remain in place for no longerthan five (5) years after the licensee ceases money transmission operations inthe state. The commissioner may permit the security device to be reduced oreliminated prior to the five (5) years to the extent that the amount of thelicensee's payment instruments outstanding in this state are reduced. Thecommissioner may also permit a licensee to substitute a letter of credit orother form of security device acceptable to the commissioner for the securitydevice in place at the time the licensee ceases money transmission operationsin the state.

 

40-22-107. Permissible investments and statutory trust.

 

(a) Each licensee shall at all times possess permissibleinvestments having an aggregate market value calculated in accordance withgenerally accepted accounting principles, of not less than the aggregate faceamount of all outstanding payment instruments and stored value issued or soldby the licensee in the United States. This requirement may be waived by the commissionerif the dollar volume of a licensee's outstanding payment instruments and storedvalue does not exceed the bond or other security devices posted by the licenseepursuant to W.S. 40-22-106.

 

(b) Permissible investments even if commingled with otherassets of the licensee, shall be deemed by operation of law to be held in trustfor the benefit of the purchasers and holders of the licensee's outstandingpayment instruments in the event of the bankruptcy of the licensee.

 

40-22-108. Application for license.

 

(a) Each application for a license shall be made in writing andin a form prescribed by the commissioner. Each application shall include thefollowing:

 

(i) The exact name of the applicant, the applicant's principaladdress, any fictitious or trade name used by the applicant in the conduct ofits business and the location of the applicant's business records;

 

(ii) The applicant's history of material litigation and criminalconvictions for the five (5) year period prior to the date of the application;

 

(iii) A description of the activities conducted by the applicantand a history of operations;

 

(iv) A description of the business activities in which theapplicant seeks to be engaged in the state;

 

(v) A list identifying the applicant's proposed authorizeddelegates in the state, if any, at the time of the filing of the licenseapplication;

 

(vi) A sample authorized delegate contract, if applicable;

 

(vii) A sample form of payment instrument, if applicable;

 

(viii) The location at which the applicant and its authorizeddelegates, if any, propose to conduct the licensed activities in the state; and

 

(ix) The name and address of the clearing bank on which paymentinstruments will be drawn or through which the payment instruments will bepayable.

 

(b) If the applicant is a corporation, the applicant shall alsoprovide:

 

(i) The date of the applicant's incorporation and state ofincorporation;

 

(ii) A certificate of good standing from the state in which theapplicant was incorporated;

 

(iii) A description of the corporate structure of the applicant,including the identity of any parent or subsidiary of the applicant and thedisclosure of whether any parent or subsidiary is publicly traded on any stockexchange;

 

(iv) The name, business and residence address and employmenthistory for the past five (5) years of the applicant's executive officers andthe officer or manager who will be in charge of the applicant's licensedactivities in this state;

 

(v) The name, business and residence address, and employmenthistory for the period five (5) years prior to the date of the application ofany key shareholder of the applicant;

 

(vi) The history of material litigation and criminal convictionsfor the five (5) year period prior to the date of the application of everyexecutive officer or key shareholder of the applicant;

 

(vii) A copy of the applicant's most recent audited financialstatement including balance sheet, statement of income or loss, statement ofchanges in shareholder equity and statement of changes in financial positionand if available, the applicant's audited financial statements for theimmediately preceding two (2) year period. Provided, if the applicant is awholly owned subsidiary of another corporation, the applicant may submit eitherthe parent corporation's consolidated audited financial statements for thecurrent year and for the immediately preceding two (2) year period or the parentcorporation's Form 10K reports filed with the United States securities andexchange commission for the prior three (3) years in lieu of the applicant'sfinancial statements. If the applicant is a wholly owned subsidiary of acorporation having its principal place of business outside the United States,similar documentation filed with the parent corporation's non United Statesregulator may be submitted to satisfy this provision; and

 

(viii) Copies of all filings, if any, made by the applicant withthe United States securities and exchange commission or with a similarregulator in a country other than the United States, within the year precedingthe date of filing of the application.

 

(c) If the applicant is not a corporation, the applicant shallalso provide:

 

(i) The name, business and residence address, personalfinancial statement and employment history for the past five (5) years, of eachprincipal of the applicant and the name, business and residence address andemployment history for the past five (5) years of any other person or personswho will be in charge of the applicant's licensed activities;

 

(ii) The place and date of the applicant's registration orqualification to do business in this state;

 

(iii) The history of material litigation and criminal convictionsfor the five (5) year period prior to the date of the application for eachindividual having any ownership interest in the applicant and each individualwho exercises supervisory responsibility with respect to the applicant'sactivities; and

 

(iv) Copies of the applicant's audited financial statementsincluding balance sheet, statement of income or loss and statement of changesin financial position for the current year and if available, for theimmediately preceding two (2) year period.

 

(d) The commissioner is authorized for good cause shown, towaive any requirement of this section with respect to any license applicationor to permit a license applicant to submit substituted information in itslicense application in lieu of the information required by this section.

 

40-22-109. Application fee.

 

Each application shall be accompanied by anonrefundable application fee not to exceed three thousand dollars ($3,000.00)for each license applied for, as set by rule of the commissioner.

 

40-22-110. Issuance of license.

 

(a) After the applicant files an application, the commissionershall investigate the financial condition and responsibility, financial andbusiness experience, character and general fitness of the applicant. Thecommissioner may conduct an on site investigation of the applicant, thereasonable cost of which shall be borne by the applicant. If the commissionerfinds that the applicant's business will be conducted honestly, fairly and in amanner commanding the confidence and trust of the community and that theapplicant has fulfilled the requirements imposed by this act and has paid therequired application fee, the commissioner shall issue a license to the applicantauthorizing the applicant to engage in the licensed activities in this statefor a term of one (1) year. If these requirements have not been met, thecommissioner shall deny the application in writing setting forth the reasonsfor the denial.

 

(b) The commissioner shall approve or deny every applicationfor an original license within one hundred twenty (120) days from the date acomplete application is submitted, provided the time period may be extendedwith written consent of the applicant. The commissioner shall notify theapplicant of the date when the application is deemed complete. In the absenceof approval or denial of the application within time period allowed orconsented to, the application is deemed approved and the commissioner shallissue the license effective as of the first day after the one hundred twenty(120) day or extended period has elapsed.

 

(c) Any applicant aggrieved by a denial issued by thecommissioner under this section may at any time within thirty (30) days fromthe date of receipt of written notice of the denial request a hearing beforethe commissioner.

 

40-22-111. Renewal of license and annual report.

 

(a) Every year on October 1 each licensee shall pay an annualrenewal fee not to exceed two thousand dollars ($2,000.00), plus not more thanone hundred dollars ($100.00) for each authorized delegate not to exceed seventhousand dollars ($7,000.00), as set by rule of the commissioner.

 

(b) The renewal fee shall be accompanied by a report, in a formapproved by the commissioner, which shall include:

 

(i) A copy of the licensee's most recent audited consolidatedannual financial statement including balance sheet, statement of income orloss, statement of changes in shareholder's equity and statement of changes infinancial position, or in the case of a licensee that is a wholly ownedsubsidiary of another corporation, the consolidated audited annual financial statementof the parent corporation may be filed in lieu of the licensee's audited annualfinancial statement;

 

(ii) For the most recent quarter for which data is availableprior to the date of the filing of the renewal application, but in no eventmore than one hundred twenty (120) days prior to the renewal date, the licenseeshall provide the number of payment instruments sold by the licensee in thestate, the dollar amount of those instruments and the dollar amount of thoseinstruments currently outstanding;

 

(iii) Any material changes to any of the information submitted bythe licensee on its original application which have not previously beenreported to the commissioner on any other report required to be filed underthis act;

 

(iv) A list of the licensee's permissible investments;

 

(v) A list of the locations, if any, within this state at whichbusiness regulated by this act is being conducted by either the licensee or itsauthorized delegates;

 

(vi) The commissioner is authorized for good cause shown towaive any requirement of this section with respect to any license renewalapplication or to permit a license renewal applicant to submit substitutedinformation in its license renewal application in lieu of the informationrequired by this section.

 

(c) A licensee that has not filed a renewal report or paid itsrenewal fee by the renewal filing deadline and has not been granted anextension of time to do so by the commissioner, shall have its licensesuspended on the renewal date. The licensee has thirty (30) days after itslicense is suspended in which to file a renewal report and pay the renewal fee.

 

40-22-112. Licensee liability.

 

A licensee's liability to any person for amoney transmission conducted on that person's behalf by the licensee or anauthorized delegate shall be limited to the amount of money transmitted or theface amount of the payment instrument or stored value purchased.

 

40-22-113. Extraordinary reporting requirements.

 

(a) Within fifteen (15) business days of the occurrence of anyone (1) of the events listed in this subsection, a licensee shall file awritten report with the commissioner describing the event and its expectedimpact on the licensee's activities in the state:

 

(i) Any material changes in information provided in alicensee's application or renewal report;

 

(ii) The filing for bankruptcy or reorganization by thelicensee;

 

(iii) The institution of revocation or suspension proceedingsagainst the licensee by any state or governmental authority with regard to thelicensee's money transmission activities;

 

(iv) Any felony indictment or conviction of the licensee or anyof its executive officers related to money transmission activities.

 

40-22-114. Changes in control of a licensee.

 

(a) A licensee shall give the commissioner written notice of aproposed change of control within fifteen (15) business days after learning ofthe proposed change of control.

 

(b) The commissioner may require the licensee to provideadditional information concerning the proposed persons in control of thelicensee. The additional information shall be limited to the same typesrequired of the licensee or persons in control of the licensee as part of itsoriginal license or renewal application.

 

(c) The licensee shall reapply and submit the required feesestablished by rule, not to exceed three thousand dollars ($3,000.00) for a newlicense upon a change in the control of the licensee as determined by thecommissioner. The license is not transferable nor assignable to the new personsin control of the licensee.

 

(d) The following persons are exempt from the requirements ofsubsections (a) through (c) of this section, but the licensee shall notify thecommissioner of a change of control:

 

(i) A person that acts as a proxy for the sole purpose ofvoting at a designated meeting of the security holders or holders of votinginterests of a licensee or person in control of a licensee;

 

(ii) A person that acquires control of a licensee by devise or descent;

 

(iii) A person that acquires control as a personalrepresentative, custodian, guardian, conservator, or trustee, or as an officerappointed by a court of competent jurisdiction or by operation of law; and

 

(iv) A person that the commissioner by rule or order exempts inthe public interest.

 

(e) Subsection (a) of this section does not apply to publicofferings of securities.

 

(f) Before filing a request for approval to acquire control, aperson may request in writing a determination from the commissioner as towhether the person would be considered a person in control of a licensee uponconsummation of a proposed transaction. If the commissioner determines that theperson would not be a person in control of a licensee, the commissioner shallenter an order to that effect and the proposed person and transaction is notsubject to the requirements of subsections (a) through (c) of this section.

 

40-22-115. Examinations.

 

(a) The commissioner may conduct examinations of personslicensed under this act at intervals he deems necessary to determine whetherviolations of this act and other applicable laws, rules and regulationspertaining to money transmissions are occurring and the frequency andseriousness of the violations.

 

(b) Each licensee or person subject to examination orinvestigation under this act shall pay to the commissioner an amount assessedby the commissioner to cover the direct and indirect cost of examinations orinvestigations conducted pursuant to this section.

 

40-22-116. Maintenance of records.

 

(a) Each licensee shall make, keep and preserve the followingbooks, accounts and other records for a period of five (5) years and theserecords shall be open to inspection by the commissioner:

 

(i) A record of each payment instrument and stored value sold;

 

(ii) A general ledger, posted at least monthly, containing allassets, liability, capital, income and expense accounts;

 

(iii) Bank statements and bank reconciliation records;

 

(iv) Outstanding payment instruments and stored value;

 

(v) Records of each payment instrument and stored value paid;

 

(vi) A list of the names and addresses of all authorizeddelegates; and

 

(vii) Any other records the commissioner reasonably requires byrule.

 

(b) The records required under this section may be maintainedin photographic, electronic or other similar form.

 

(c) Records may be maintained at a location other than withinthis state so long as they are made accessible to the commissioner upon seven(7) business days written notice.

 

40-22-117. Confidentiality of records; exception.

 

(a) Except as provided in subsection (b) of this section, allinformation or reports obtained by the commissioner from an applicant, licenseeor authorized delegate are confidential.

 

(b) The commissioner may disclose confidential information toofficials and examiners in other states or to federal regulatory authorities orto appropriate prosecuting attorneys.

 

(c) This section does not prohibit the commissioner fromdisclosing to the public a list of persons licensed under this act or theaggregated financial data on those licensees.

 

40-22-118. Authorized delegate contracts.

 

(a) A licensee shall designate an authorized delegate byexpress written contract including the following:

 

(i) That the licensee appoints the person as its delegate withauthority to engage in money transmission on behalf of the licensee;

 

(ii) That neither a licensee nor an authorized delegate mayauthorize subdelegates without the written consent of the commissioner; and

 

(iii) That authorized delegates are subject to supervision andregulation by the commissioner.

 

40-22-119. Authorized delegate conduct.

 

(a) An authorized delegate shall not make any fraudulent orfalse statement or misrepresentation to a licensee or to the commissioner.

 

(b) All money transmission activities conducted by anauthorized delegate shall be in strict accord with the licensee's writtenprocedures provided to the authorized delegate.

 

(c) An authorized delegate shall remit all money owing to thelicensee in accordance with the terms of the contract between the licensee andthe authorized delegate.

 

(d) An authorized delegate is deemed to consent to thecommissioner's inspection with or without prior notice to the licensee orauthorized delegate pursuant to W.S. 40-22-115.

 

40-22-120. License suspension or revocation.

 

(a) The commissioner may suspend or revoke a licensee's licenseif the commissioner finds that:

 

(i) Any fact or condition exists that, if it had existed at thetime when the licensee applied for its license, would have been grounds fordenying the application;

 

(ii) The licensee's net worth becomes inadequate and thelicensee after ten (10) business days written notice from the commissioner,fails to remedy the deficiency;

 

(iii) The licensee knowingly violates any material provision ofthis act or any rule or order validly promulgated by the commissioner;

 

(iv) The licensee is conducting its business in an unsafe orunsound manner;

 

(v) The licensee is insolvent;

 

(vi) The licensee has suspended payment of its obligations, hasmade an assignment for the benefit of its creditors or has admitted in writingits inability to pay its debts as they become due;

 

(vii) The licensee has applied for an adjudication of bankruptcy,reorganization, arrangement or other relief under any bankruptcy;

 

(viii) The licensee refuses to permit the commissioner to make anyexamination authorized by this act;

 

(ix) The licensee willfully fails to make any report required bythis act;

 

(x) The competence, experience, character or general fitness ofthe licensee indicates that it is not in the public interest to permit thelicensee to continue to conduct business.

 

40-22-121. Suspension or revocation of authorized delegates.

 

(a) The commissioner may issue an order to the licenseesuspending or revoking the designation of an authorized delegate if thecommissioner finds that:

 

(i) The authorized delegate violated this act or a rule adoptedor an order issued under this act;

 

(ii) The authorized delegate has not cooperated with anexamination or investigation by the commissioner;

 

(iii) The authorized delegate has engaged in fraud, intentionalmisrepresentation or gross negligence;

 

(iv) The authorized delegate has been convicted of a violationof a state or federal money laundering statute;

 

(v) The competence, experience, character or general fitness ofthe authorized delegate or a person in control of the authorized delegateindicates that it is not in the public interest to permit the authorizeddelegate to provide money services; or

 

(vi) The authorized delegate has engaged in an unsafe or unsoundpractice.

 

(b) In determining whether an authorized delegate has engagedin an unsafe or unsound practice the commissioner may consider the size andcondition of the authorized delegate's provision of money services, themagnitude of the loss, the gravity of the violation of this act and theprevious conduct of the authorized delegate.

 

(c) An authorized delegate may apply for relief from asuspension or revocation designation as an authorized delegate according toprocedures prescribed by the commissioner.

 

40-22-122. Orders to cease and desist.

 

(a) If the commissioner determines that a violation of this actor of a rule adopted or an order issued under this act by a licensee orauthorized delegate is likely to cause immediate and irreparable harm to thelicensee, its customers or the public as a result of the violation or causeinsolvency or significant dissipation of assets of the licensee, thecommissioner may issue an order requiring the licensee or authorized delegateto cease and desist from the violation. The order becomes effective uponservice upon the licensee or authorized delegate.

 

(b) The commissioner may issue an order against a licensee tocease and desist from providing money transmission services through anauthorized delegate that is the subject of a separate order pursuant to W.S.40-22-121 by the commissioner.

 

(c) An order to cease and desist remains effective andenforceable pending the completion of an administrative proceeding pursuant toWyoming Administrative Procedure Act.

 

40-22-123. Consent orders.

 

The commissioner may enter into a consentorder at any time with a person to resolve a matter arising under this act. Aconsent order shall be signed by the person to whom it is issued or by theperson's authorized representative and shall indicate agreement with the termscontained in the order. A consent order may provide that it does notconstitute an admission by a person that this act or a rule adopted or an orderissued under this act has been violated.

 

40-22-124. Civil penalties.

 

The commissioner may impose a civil penaltyupon a person who violates this act or a rule adopted or an order issued underthis act in an amount not to exceed five hundred dollars ($500.00) per day foreach day the violation is outstanding, plus the state's costs and expenses forthe investigation and prosecution of the matter, including reasonableattorney's fees.

 

40-22-125. Criminal penalties.

 

(a) A person who intentionally makes a false statement,misrepresentation or false certification in a record filed or required to bemaintained under this act or who intentionally makes a false entry or omits amaterial entry in the record is guilty of a felony, punishable for not lessthan three (3) years imprisonment or a fine of not less than ten thousand dollars($10,000.00), or both.

 

(b) An individual who knowingly engages in any activity forwhich a license is required under this act without being licensed under thisact is guilty of a felony punishable for not less than three (3) yearsimprisonment or a fine of not less than ten thousand dollars ($10,000.00), orboth.

 

40-22-126. Unlicensed persons.

 

(a) If the commissioner has reason to believe that a person hasviolated or is violating W.S. 40-22-103 of this act the commissioner may issuean order to show cause why an order to cease and desist should not issuerequiring that the person cease and desist from the violation of W.S.40-22-103.

 

(b) In an emergency, the commissioner may petition the districtcourt for the issuance of a temporary restraining order.

 

(c) An order to cease and desist becomes effective upon serviceupon the person.

 

(d) An order to cease and desist remains effective andenforceable pending the completion of an administrative proceeding pursuant toW.S. 40-22-127 and 40-22-128.

 

(e) A person served with an order to cease and desist forviolating W.S. 40-22-103 may petition the district court for a judicial ordersetting aside, limiting, or suspending the enforcement, operation, oreffectiveness of the order pending the completion of an administrativeproceeding pursuant to W.S. 40-22-127 and 40-22-128.

 

(f) The commissioner shall commence a contested case proceedingwithin twenty (20) days after issuing an order to cease and desist.

 

40-22-127. Administrative procedures.

 

All administrative proceedings under thisact shall be conducted in accordance with the Wyoming Administrative ProcedureAct.

 

40-22-128. Hearings.

 

Except as otherwise provided in W.S.40-22-111(c) and 40-22-122(c), the commissioner may not suspend or revoke alicense, issue an order to cease and desist, suspend or revoke the designationof an authorized delegate, or assess a civil penalty without notice and anopportunity to be heard. The commissioner shall also hold a hearing whenrequested to do so by an applicant whose application for a license is denied.

 

40-22-129. Rulemaking and deposit of fees.

 

(a) The commissioner shall promulgate all necessary rules toimplement and administer this act.

 

(b) All application, renewal and licensing fees shall bedeposited by the commissioner with the state treasurer into the financialinstitutions administration account.

 

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