(a)As used in this section, "remit" means
to:
(1)make direct payments of money to a licensee or its
representative authorized to receive money; or
(2)deposit money in a bank in an account specified by the
licensee.
(b)Before conducting business through an authorized delegate or
allowing a person to act as an authorized delegate on its behalf, a
licensee must:
(1)adopt, and update as necessary, written policies and
procedures reasonably designed to ensure that the licensee's
authorized delegates comply with applicable state and federal
law;
(2)enter into a written contract that complies with subsection (d);
and
(3)conduct a reasonable risk based background investigation
sufficient for the licensee to determine whether the authorized
delegate has complied and will likely comply with a
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(a) As used in this section, "remit" means
to:
(1) make direct payments of money to a licensee or its
representative authorized to receive money; or
(2) deposit money in a bank in an account specified by the
licensee.
(b) Before conducting business through an authorized delegate or
allowing a person to act as an authorized delegate on its behalf, a
licensee must:
(1) adopt, and update as necessary, written policies and
procedures reasonably designed to ensure that the licensee's
authorized delegates comply with applicable state and federal
law;
(2) enter into a written contract that complies with subsection (d);
and
(3) conduct a reasonable risk based background investigation
sufficient for the licensee to determine whether the authorized
delegate has complied and will likely comply with applicable
state and federal law.
(c) An authorized delegate must operate in full compliance with this
chapter.
(d) The written contract required by subsection (b)(2) must be
signed by the licensee and the authorized delegate and, at a minimum,
must do the following:
(1) Appoint the person signing the contract as the licensee's
authorized delegate with the authority to conduct money
transmission on behalf of the licensee.
(2) Set forth:
(A) the nature and scope of the relationship between the
licensee and the authorized delegate; and
(B) the respective rights and responsibilities of the parties.
(3) Require the authorized delegate to agree to fully comply with
all applicable state and federal laws, rules, and regulations
pertaining to money transmission, including this chapter and
regulations implementing this chapter, and relevant provisions of
the Bank Secrecy Act and the USA Patriot Act of 2001 (P.L.
107-56).
(4) Require the authorized delegate to remit and handle money
and monetary value in accordance with the terms of the contract
between the licensee and the authorized delegate.
(5) Impose a trust on money and monetary value, net of fees,
received for money transmission, for the benefit of the licensee.
(6) Require the authorized delegate to prepare and maintain
records as required by this chapter or regulations implementing
this chapter, or as reasonably requested by the director.
(7) Include an acknowledgment that the authorized delegate
consents to examination or investigation by the director.
(8) State that the licensee is subject to regulation by the
department and that, as part of that regulation, the department
may suspend or revoke an authorized delegate designation or
require the licensee to terminate an authorized delegate
designation.
(9) Include an acknowledgment of the authorized delegate's
receipt of the written policies and procedures required under
subsection (b)(1).
(e) If a licensee's license is suspended, revoked, surrendered, or
expired, the licensee must, not later than five (5) business days after
receiving notice of the action taken, provide documentation to the
director that the licensee has notified all of the licensee's applicable
authorized delegates, whose names are in a record filed with the
director, of the suspension, revocation, surrender, or expiration of the
license. Upon suspension, revocation, surrender, or expiration of a
license, applicable authorized delegates shall immediately cease to
provide money transmission as an authorized delegate of the licensee.
(f) An authorized delegate of a licensee holds in trust for the benefit
of the licensee all money, net of fees, received from money
transmission. If an authorized delegate commingles any funds received
from money transmission with any other funds or property owned or
controlled by the authorized delegate, all commingled funds and other
property are considered held in trust in favor of the licensee in an
amount equal to the amount of money, net of fees, received from
money transmission.
(g) An authorized delegate may not use a subdelegate to conduct
money transmission on behalf of a licensee.