Bill > H4196

This bill establishes a new regulatory framework for money transmission businesses in Massachusetts, overseen by the Division of Banks and its Commissioner. It repeals existing laws related to money transmission and introduces a new chapter, Chapter 169B, which defines key terms like "money transmission" (the business of sending money domestically or internationally), "licensee" (a person licensed to conduct this business, excluding their agents), and "authorized agent" (a person authorized by a licensee to conduct money transmission on their behalf). The bill requires anyone engaging in money transmission to obtain a license from the Commissioner, detailing application requirements, background checks, and grounds for denial, such as prior felony convictions or fraudulent activity. It also outlines the Commissioner's authority to create regulations, including capitalization requirements, and specifies rules for license renewal, transferability, and notification of changes in business operations. The bill mandates that all transmitted money be forwarded within seven days and establishes penalties for violations, including fines and license suspension or revocation. It also requires licensees to maintain specific permissible investments to cover outstanding obligations and outlines procedures for the Commissioner to investigate potential violations and issue orders, including temporary cease and desist orders. Finally, it sets requirements for surety bonds or other security to protect claimants and details the process for approving and overseeing authorized agents.