§ 10 — Suspension or revocation of license; suspension or revocation of authorized delegates; cease and desist orders; civil penalties; civil actions

Massachusetts § 10

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title XXII: CORPORATIONS
• Ch. 169B: REGULATION OF MONEY TRANSMISSION

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[ Text of section added by 2024, 312, Sec. 3 effective January 1, 2026. See 2024, 312, Sec. 6.]Section 10. (a)(1) The commissioner may suspend or revoke a license or order a licensee to revoke the designation of an authorized delegate if:(i) the licensee violates this chapter or a rule adopted or an order issued under this chapter;(ii) the licensee does not cooperate with an examination or investigation by the commissioner;(iii) the licensee engages in fraud, intentional misrepresentation or gross negligence;(iv) an authorized delegate is convicted of a violation of a state or federal anti-money laundering statute or violates a rule adopted or an order issued under this chapter as a result of the licensee's willful misconduct or willful blindness;(v) the competence, experience, character or general fitness of the licensee, authorized delegate, person in control of a licensee, key individual or responsible person of the authorized delegate indicates that it is not in the public interest to permit the person to provide money transmission;(vi) the licensee engages in an unsafe or unsound practice;(vii) the licensee is insolvent, suspends payment of its obligations or makes a general assignment for the benefit of its creditors; or(viii) the licensee does not remove an authorized delegate after the commissioner issues and serves upon the licensee a final order including a finding that the authorized delegate has violated this chapter.(2) In determining whether a licensee is engaging in an unsafe or unsound practice, the commissioner may consider the size and condition of the licensee's money transmission, the magnitude of the loss, the gravity of the violation of this chapter and the previous conduct of the person involved.(b)(1) The commissioner may issue an order suspending or revoking the designation of an authorized delegate if the commissioner finds that:(i) the authorized delegate violated this chapter or a rule adopted or an order issued under this chapter;(ii) the authorized delegate did not cooperate with an examination or investigation by the commissioner;(iii) the authorized delegate engaged in fraud, intentional misrepresentation or gross negligence;(iv) the authorized delegate has been convicted of a violation of a state or federal anti-money laundering statute;(v) the competence, experience, character, or general fitness of the authorized delegate or a person in control of the authorized delegate indicates that it is not in the public interest to permit the authorized delegate to provide money transmission; or(vi) the authorized delegate is engaging in an unsafe or unsound practice.(2) In determining whether an authorized delegate is engaging in an unsafe or unsound practice, the commissioner may consider the size and condition of the authorized delegate's provision of money transmission, the magnitude of the loss, the gravity of the violation of this chapter or a rule adopted or order issued under this chapter and the previous conduct of the authorized delegate.(3) An authorized delegate may apply for relief from a suspension or revocation of designation as an authorized delegate according to procedures prescribed by the commissioner.(c)(1) If the commissioner determines, after giving notice of and opportunity for a hearing, that a person or entity has engaged in or is about to engage in an act or practice constituting a violation of this chapter or a rule, regulation or order hereunder, the commissioner may order such person or entity to cease and desist from such unlawful act or practice and take such affirmative action as in their judgment shall effect the purposes of this chapter.(2) If the commissioner makes written findings of fact that the public interest will be irreparably harmed by delay in issuing an order pursuant to subsection (a), the commissioner may issue a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the commissioner shall promptly notify, in writing, the person or individual affected thereby that such order has been so entered, the reasons therefor, and that within 20 days after the receipt of a written request from such person or individual, the matter shall be scheduled for a hearing to determine whether such temporary order shall become permanent and final. If no such hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and opportunity for a hearing to the person or individual subject to said order, shall, by written finding of facts and conclusions of law, vacate, modify or make permanent the order.(3) No order under this section, except an order issued pursuant to subsection (b), shall be entered without prior notice of and opportunity for a hearing. The commissioner may vacate or modify an order under this section upon finding that the conditions that required such an order have changed and that it is in the public interest to so vacate or modify.(4) An order issued pursuant to this section shall be subject to review as provided in chapter 30A.(d) The commissioner may assess a civil penalty against a person or individual that violates this chapter or a rule adopted or an order issued under this chapter in an amount not to exceed $2,000 per day for each day the violation is outstanding or per transaction, plus the commonwealth's costs and expenses for the investigation and prosecution of the matter, including reasonable attorney's fees.(e) The commissioner may enforce the provisions of this chapter or restrain violations thereof by filing a civil action in the superior court department of the trial court.