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Bill > HB1596

MS HB1596

MS HB1596
Money transmitters; require to implement certain data security measures and customer protections.

summary

Introduced
01/19/2026
In Committee
02/19/2026
Crossed Over
02/10/2026
Passed
04/08/2026
Dead
Signed/Enacted/Adopted
04/08/2026

Introduced Session

Potential new amendment
2026 Regular Session

Bill Summary

An Act To Require A Money Transmitter Licensed Under The Money Transmission Modernization Act To Implement Safeguards To Protect Customer Information And Increase Data Security; To Require A Licensee To Designate A Qualified Individual To Be Responsible For Overseeing, Implementing And Enforcing An Information Security Program; To Provide The Minimum Standards And Requirements For The Information Security Program And To Require Risk Assessments; To Require Notification To The Commissioner Of Banking And Consumer Finance When Unencrypted Customer Information Is Acquired Without The Authorization Of The Affected Individual; To Provide Certain Exceptions; To Amend Section 75-16-11, Mississippi Code Of 1972, To Provide That Funds Coming Into The Possession Of The Commissioner As A Result Of The Money Transmission Modernization Act Shall Be Deposited Into The Consumer Finance Fund; To Amend Sections 75-16-25, 75-16-31 And 75-16-43, Mississippi Code Of 1972, To Regulate Virtual Currency Kiosks Under The Provisions Of The Money Transmission Modernization Act; To Amend Section 75-16-51, Mississippi Code Of 1972, To Require A Licensee To Provide Training Materials To Help Authorized Delegates Recognize Financial Abuse And Financial Exploitation Of An Elder Adult And Respond Appropriately In Such Situations; To Amend Section 75-16-65, Mississippi Code Of 1972, To Include The Word "investments"; To Create New Section 75-16-89, Mississippi Code Of 1972, To Require A Licensee To Provide Certain Information To The Purchaser In Connection With Each Money Transmission Or Kiosk Transaction Conducted By The Licensee Directly Or Through An Authorized Delegate; And For Related Purposes.

AI Summary

This bill, known as the "Data Security for Money Transmitters Act," mandates that money transmitters and virtual currency kiosk operators (referred to as "licensees") implement robust data security measures and customer protections. Key provisions include requiring licensees to establish a comprehensive information security program overseen by a designated "qualified individual," conduct regular risk assessments to identify and mitigate potential threats to customer information, and implement safeguards such as encryption for data both in transit and at rest, secure development practices, and multi-factor authentication for system access. The bill also mandates periodic testing of these safeguards, including penetration testing and vulnerability assessments, and requires personnel to receive security awareness training. Licensees must develop an incident response plan for security events and report any unauthorized acquisition of unencrypted customer information to the Commissioner of Banking and Consumer Finance within 72 hours. Furthermore, the bill amends existing laws to include virtual currency kiosks under money transmission regulations, requires licensees to provide training materials to authorized delegates on recognizing and responding to elder financial abuse, and mandates that licensees provide specific information to purchasers for each transaction, including their name and contact details, along with a fraud warning. Funds collected by the Commissioner due to this act will be deposited into the Consumer Finance Fund, and the bill also clarifies the definition of "investments" for permissible investments maintained by licensees.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Approved by Governor (on 04/08/2026)

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