Bill > HB343

This bill comprehensively updates and standardizes the regulation of money transmitters and money order sellers in Virginia, creating two distinct articles within the state code. The bill establishes a robust licensing and oversight framework for financial institutions engaged in money transmission, with key provisions including mandatory licensing, detailed application requirements, financial standards, reporting obligations, and enforcement mechanisms. Key provisions include requiring businesses to obtain a license from the State Corporation Commission before engaging in money transmission, maintaining a minimum tangible net worth of $100,000 or a percentage of total assets, providing a surety bond, and maintaining permissible investments equal to the company's outstanding money transmission obligations. The bill mandates detailed reporting requirements, including quarterly financial reports, audited annual financial statements, and immediate reporting of significant events like bankruptcy filings or key personnel changes. The legislation introduces comprehensive supervision and examination powers for the Commission, allows for multistate coordination in licensing and regulation, and establishes strict rules for authorized delegates. It also includes consumer protection measures such as requiring detailed transaction receipts, timely transmission of funds, and refund provisions. Violations can result in civil penalties up to $2,500 per occurrence, and operating without a license is classified as a Class 1 misdemeanor. The bill aims to standardize money transmission regulation across states, improve consumer protection, ensure financial institutions' accountability, and create a more transparent and secure money transmission ecosystem in Virginia.

Business and Industry

https://lis.virginia.gov/cgi-bin/legp604.exe?251+sum+HB343