§ 533C.103 — Exemptions

Iowa § 533C.103

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 533C: UNIFORM MONEY TRANSMISSION MODERNIZATION ACT

Text

The superintendent may require that any person claiming to be exempt from licensing
pursuant to this section provide information and documentation to the superintendent
demonstrating that the person qualifies for any claimed exemption. This chapter does not
apply to:
1. The United States or a department, agency, agent, or instrumentality thereof.
2. Money transmission by the United States postal service or by an agent of the United
States postal service.
3. A state, county, city, or governmental agency, governmental subdivision,
instrumentality, or agent of a state.
4. A federally insured depository financial institution, bank holding company, office of an
international banking corporation, foreign bank that establishes a federal branch pursuant
to the federal International Bank Act, 12 U.S.C. §3102, as amended, corporation organized
pursuant to the federal Bank Service Company Act, 12 U.S.C. §1861 – 1867, as amended, or
corporation organized under the federal Edge Act, 12 U.S.C. §611 – 633, as amended.
5. Electronic funds transfer of governmental benefits for a federal, state, county, or
governmental agency by a contractor on behalf of the United States or a department, agency,
or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or
instrumentality thereof.
6. A board of trade designated as a contract market under the federal Commodity
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Exchange Act, 7 U.S.C. §1 – 25, as amended, or a person that, in the ordinary course of
business, provides clearance and settlement services for a board of trade to the extent of its
operation as or for such a board.
7. A registered futures commission merchant under the federal commodities laws to the
extent of its operation as such a merchant.
8. A person that acts as an intermediary by processing payments between an entity that
has directly incurred an outstanding money transmission obligation to a sender, and the
sender’s designated recipient, provided all of the following apply:
a. The entity is properly licensed or exempt from licensing requirements under this
chapter.
b. The entity provides a receipt, electronic record, or other written confirmation to the
sender identifying the entity as the provider of money transmission in the transaction.
c. The entity bears sole responsibility to satisfy the outstanding money transmission
obligations to the sender, including the obligation to make the sender whole in connection
with any failure to transmit the funds to the sender’s designated recipient.
9. An operator of a payment system to the extent that it provides processing, clearing,
or settlement services, between or among persons excluded by this section, or licensees, in
connection with wire transfers, credit card transactions, debit card transactions, stored-value
transactions, automated clearing house transfers, or similar funds transfers.
10. A person registered as a securities broker-dealer under federal or state securities laws
to the extent of its operation as such a broker-dealer.
11. A delayed deposit services business as defined in chapter 533D.
12. A real estate broker or salesperson as defined in chapter 543B.
13. Pari-mutuelwagering, racetracks, excursiongamblingboats, andgamblingstructures
as provided in chapters 99D and 99F.
14. A person engaging in the business of debt management that is licensed or exempt
from licensing pursuant to section 533A.2.
15. An insurance company organized under chapter 508, 514, 514B, 515, 518, 518A, or
520, or authorized to do the business of insurance in Iowa to the extent of its operation as an
insurance company.
16. An insurance producer as defined in section 522B.1 to the extent of its operation as
an insurance producer.
17. A person appointed as an agent of a payee to collect and process a payment from a
payor to the payee for goods or services, other than money transmission itself, provided to
the payor by the payee, provided all of the following apply:
a. There exists a written agreement between the payee and the agent directing the agent
to collect and process payments from payors on the payee’s behalf.
b. The payee holds the agent out to the public as accepting payments for goods or services
on the payee’s behalf.
c. Payment for the goods and services is treated as received by the payee upon receipt
by the agent so that the payor’s obligation is extinguished and there is no risk of loss to the
payor if the agent fails to remit the funds to the payee.
18. An individual employed by a licensee, authorized delegate, or any person exempted
from the licensing requirements of this chapter when acting within the scope of employment
and under the supervision of the licensee, authorized delegate, or exempted person as an
employee and not as an independent contractor.
19. A person expressly appointed as a third-party service provider to or agent of an entity
exempt under subsection 4, provided all of the following apply:
a. The service provider or agent is engaging in money transmission on behalf of and
pursuant to a written agreement with the exempt entity that sets forth the specific functions
that the service provider or agent is to perform.
b. The exempt entity assumes all risk of loss and all legal responsibility for satisfying
the outstanding money transmission obligations owed to purchasers and holders of the
outstanding money transmission obligations upon receipt of the purchaser’s or holder’s
money or monetary value by the service provider or agent.
20. A person exempt by regulation or order if the superintendent finds such exemption
§533C.103, UNIFORM MONEY TRANSMISSION MODERNIZATION ACT 6
to be in the public interest and that the regulation of such person is not necessary for the
purposes of this chapter.
21. Apersonappointedasanagentofapayorforpurposesofprovidingpayrollprocessing
servicesforwhichtheagentwouldotherwiseneedtobelicensed,providedallofthefollowing
apply:
a. There is a written agreement between the payor and the agent that directs the agent to
provide payroll processing services on the payor’s behalf.
b. The payor holds the agent out to employees and other payees as providing payroll
processing services on the payor’s behalf.
c. The payor’s obligation to a payee, including an employee or any other party entitled
to receive funds via the payroll processing services provided by the agent, shall not be
extinguished if the agent fails to remit the funds to the payee.