Florida Senate - 2014                       CS for CS for SB 590
       
       
        
       By the Committees on Criminal Justice; and Banking and
       Insurance; and Senator Richter
       
       
       
       
       591-01840-14                                           2014590c2
    1                        A bill to be entitled                      
    2         An act relating to money services businesses; amending
    3         s. 560.111, F.S.; providing that failing to provide
    4         certain information relating to a check cashing
    5         transaction is a felony; reenacting and amending s.
    6         560.114, F.S.; updating cross-references; authorizing
    7         the Office of Financial Regulation to summarily
    8         suspend a license if criminal charges are filed
    9         against certain persons or such persons are arrested
   10         for certain offenses; amending s. 560.1235, F.S.;
   11         updating cross-references; amending s. 560.125, F.S.;
   12         providing that a deferred presentment transaction
   13         conducted by an unauthorized person is void; amending
   14         ss. 560.1401, 560.141, and 560.309, F.S.; updating
   15         cross-references; providing an effective date.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. Subsection (6) is added to section 560.111,
   20  Florida Statutes, to read:
   21         560.111 Prohibited acts.—
   22         (6) A person who knowingly and willfully violates s.
   23  560.310(2)(d) commits a felony of the third degree, punishable
   24  as provided in s. 775.082, s. 775.083, or s.775.084.
   25         Section 2. Paragraphs (e) and (y) of subsection (1) and
   26  subsection (2) of section 560.114, Florida Statutes, are
   27  amended, and paragraph (h) of subsection (1) of that section is
   28  reenacted, to read:
   29         560.114 Disciplinary actions; penalties.—
   30         (1) The following actions by a money services business,
   31  authorized vendor, or affiliated party constitute grounds for
   32  the issuance of a cease and desist order; the issuance of a
   33  removal order; the denial, suspension, or revocation of a
   34  license; or taking any other action within the authority of the
   35  office pursuant to this chapter:
   36         (e) Failure to maintain, preserve, keep available for
   37  examination, and produce all books, accounts, files, or other
   38  documents required by this chapter or related rules or orders,
   39  by 31 C.F.R. ss. 1010.306, 1010.311, 1010.312, 1010.340,
   40  1010.410, 1010.415, 1022.210, 1022.320, 1022.380, and 1022.410
   41  103.20, 103.22, 103.23, 103.27, 103.28, 103.29, 103.33, 103.37,
   42  103.41, and 103.125, or by an any agreement entered into with
   43  the office.
   44         (h) Engaging in an act prohibited under s. 560.111.
   45         (y) Violations of 31 C.F.R. ss. 1010.306, 1010.311,
   46  1010.312, 1010.340, 1010.410, 1010.415, 1022.210, 1022.320,
   47  1022.380, and 1022.410 103.20, 103.22, 103.23, 103.27, 103.28,
   48  103.29, 103.33, 103.37, 103.41, and 103.125, and United States
   49  Treasury Interpretive Release 2004-1.
   50         (2) Pursuant to s. 120.60(6), the office may summarily
   51  suspend the license of a money services business if the office
   52  finds that a licensee poses an immediate, serious danger to the
   53  public health, safety, and welfare. A proceeding in which the
   54  office seeks the issuance of a final order for the summary
   55  suspension of a licensee shall be conducted by the commissioner
   56  of the office, or his or her designee, who shall issue such
   57  order. The following acts are deemed to constitute an immediate
   58  and serious danger to the public health, safety, and welfare,
   59  and the office may immediately suspend the license of a any
   60  money services business if the money services business fails to:
   61         (a) The money services business fails to provide to the
   62  office, upon written request, any of the records required by s.
   63  560.123, s. 560.1235, s. 560.211, or s. 560.310 or any rule
   64  adopted under those sections. The suspension may be rescinded if
   65  the licensee submits the requested records to the office.
   66         (b) The money services business fails to maintain a
   67  federally insured depository account as required by s. 560.309.
   68         (c) A natural person required to be listed on the license
   69  application for a money service business pursuant to s.
   70  560.141(1)(a)3. is criminally charged with, or arrested for, a
   71  crime described in paragraph (1)(o), paragraph (1)(p), or
   72  paragraph(1)(q).
   73  
   74  For purposes of s. 120.60(6), failure to perform any of the acts
   75  specified in this subsection constitutes immediate and serious
   76  danger to the public health, safety, and welfare.
   77         Section 3. Section 560.1235, Florida Statutes, is amended
   78  to read:
   79         560.1235 Anti-money laundering requirements.—
   80         (1) A licensee and authorized vendor must comply with all
   81  state and federal laws and rules relating to the detection and
   82  prevention of money laundering, including, as applicable, s.
   83  560.123, and 31 C.F.R. ss. 1010.306, 1010.311, 1010.312,
   84  1010.313, 1010.340, 1010.410, 1010.415, 1022.320, 1022.380, and
   85  1022.410 103.20, 103.22, 103.23, 103.27, 103.28, 103.29, 103.33,
   86  103.37, and 103.41.
   87         (2) A licensee and authorized vendor must maintain an anti
   88  money laundering program in accordance with 31 C.F.R. s.
   89  1022.210 103.125. The program must be reviewed and updated as
   90  necessary to ensure that the program continues to be effective
   91  in detecting and deterring money laundering activities.
   92         (3) A licensee must comply with United States Treasury
   93  Interpretive Release 2004-1.
   94         Section 4. Subsection (1) of section 560.125, Florida
   95  Statutes, is amended to read:
   96         560.125 Unlicensed activity; penalties.—
   97         (1) A person may not engage in the business of a money
   98  services business or deferred presentment provider in this state
   99  unless the person is licensed or exempted from licensure under
  100  this chapter. A deferred presentment transaction conducted by a
  101  person not authorized to conduct such transaction under this
  102  chapter is void, and the unauthorized person has no right to
  103  collect, receive, or retain any principal, interest, or charges
  104  relating to such transaction.
  105         Section 5. Subsections (3) and (4) of section 560.1401,
  106  Florida Statutes, are amended to read:
  107         560.1401 Licensing standards.—To qualify for licensure as a
  108  money services business under this chapter, an applicant must:
  109         (3) Be registered as a money services business with the
  110  Financial Crimes Enforcement Network as required by 31 C.F.R. s.
  111  1022.380 103.41, if applicable.
  112         (4) Have an anti-money laundering program in place which
  113  meets the requirements of 31 C.F.R. s. 1022.210 103.125.
  114         Section 6. Paragraph (d) of subsection (1) of section
  115  560.141, Florida Statutes, is amended to read:
  116         560.141 License application.—
  117         (1) To apply for a license as a money services business
  118  under this chapter, the applicant must submit:
  119         (d) A copy of the applicant’s written anti-money laundering
  120  program required under 31 C.F.R. s. 1022.210 103.125.
  121         Section 7. Subsection (5) of section 560.309, Florida
  122  Statutes, is amended to read:
  123         560.309 Conduct of business.—
  124         (5) A licensee must report all suspicious activity to the
  125  office in accordance with the criteria set forth in 31 C.F.R. s.
  126  1022.320 103.20. In lieu of filing such reports, the commission
  127  may prescribe by rule that the licensee may file such reports
  128  with an appropriate regulator.
  129         Section 8. This act shall take effect July 1, 2014.