Florida Senate - 2014 SB 590
By Senator Richter
23-00721B-14 2014590__
1 A bill to be entitled
2 An act relating to check cashing services; amending s.
3 560.111, F.S.; revising the elements of prohibited
4 acts; updating cross-references; reenacting and
5 amending s. 560.114, F.S.; updating cross-references;
6 authorizing the Office of Financial Regulation to
7 summarily suspend a license if criminal charges are
8 filed against certain persons or such persons are
9 arrested for certain offenses; amending s. 560.1235,
10 F.S.; updating cross-references; amending s. 560.125,
11 F.S.; providing that a deferred presentment
12 transaction conducted by an unlicensed person is void;
13 amending ss. 560.1401 and 560.141, F.S.; updating
14 cross-references; amending s. 560.304, F.S.; requiring
15 persons cashing payment instruments that have a lower
16 aggregate face value to be licensed; amending s.
17 560.309, F.S.; updating a cross-reference; providing
18 an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (5) of section 560.111, Florida
23 Statutes, is amended to read:
24 560.111 Prohibited acts.—
25 (5) A Any person who knowingly and willfully violates any
26 provision of s. 560.310, s. 560.403, s. 560.404, or s. 560.405
27 commits a felony of the third degree, punishable as provided in
28 s. 775.082, s. 775.083, or s. 775.084.
29 Section 2. Paragraphs (e) and (y) of subsection (1) and
30 subsection (2) of section 560.114, Florida Statutes, are
31 amended, and paragraph (h) of subsection (1) of that section is
32 reenacted, to read:
33 560.114 Disciplinary actions; penalties.—
34 (1) The following actions by a money services business,
35 authorized vendor, or affiliated party constitute grounds for
36 the issuance of a cease and desist order; the issuance of a
37 removal order; the denial, suspension, or revocation of a
38 license; or taking any other action within the authority of the
39 office pursuant to this chapter:
40 (e) Failure to maintain, preserve, keep available for
41 examination, and produce all books, accounts, files, or other
42 documents required by this chapter or related rules or orders,
43 by 31 C.F.R. ss. 1010.306, 1010.312, 1010.340, 1010.410,
44 1010.415, 1020.315, 1020.410, 1021.311, 1021.313, 1022.210,
45 1022.320, 1022.380, and 1022.410 103.20, 103.22, 103.23, 103.27,
46 103.28, 103.29, 103.33, 103.37, 103.41, and 103.125, or by an
47 any agreement entered into with the office.
48 (h) Engaging in an act prohibited under s. 560.111.
49 (y) Violations of 31 C.F.R. ss. 1010.306, 1010.312,
50 1010.340, 1010.410, 1010.415, 1020.315, 1020.410, 1021.311,
51 1021.313, 1022.210, 1022.320, 1022.380, and 1022.410 103.20,
52 103.22, 103.23, 103.27, 103.28, 103.29, 103.33, 103.37, 103.41,
53 and 103.125, and United States Treasury Interpretive Release
54 2004-1.
55 (2) Pursuant to s. 120.60(6), the office may summarily
56 suspend the license of a money services business if the office
57 has reason to believe that a licensee poses an immediate,
58 serious danger to the public health, safety, and welfare. A
59 proceeding for the summary suspension of a licensee must be
60 conducted by the commissioner of the office, or his or her
61 designee, who shall issue the final summary order. The following
62 acts are deemed to constitute an immediate and serious danger to
63 the public health, safety, and welfare, and the office may
64 immediately suspend the license of a any money services business
65 if the money services business fails to:
66 (a) The money services business fails to provide to the
67 office, upon written request, any of the records required by s.
68 560.123, s. 560.1235, s. 560.211, or s. 560.310 or any rule
69 adopted under those sections. The suspension may be rescinded if
70 the licensee submits the requested records to the office.
71 (b) The money services business fails to maintain a
72 federally insured depository account as required by s. 560.309.
73 (c) Criminal charges are filed against a natural person
74 required to be listed on the license application pursuant to s.
75 560.141(1)(a)3. or such person is arrested for a crime listed in
76 paragraph (1)(o), paragraph (1)(p), or paragraph (1)(q).
77
78 For purposes of s. 120.60(6), failure to perform any of the acts
79 specified in this subsection constitutes immediate and serious
80 danger to the public health, safety, and welfare.
81 Section 3. Section 560.1235, Florida Statutes, is amended
82 to read:
83 560.1235 Anti-money laundering requirements.—
84 (1) A licensee and authorized vendor must comply with all
85 state and federal laws and rules relating to the detection and
86 prevention of money laundering, including, as applicable, s.
87 560.123, and 31 C.F.R. ss. 1010.306, 1010.311, 1010.312,
88 1010.313, 1010.340, 1010.410, 1010.415, 1020.315, 1020.410,
89 1021.311, 1021.313, 1022.320, 1022.380, and 1022.410 103.20,
90 103.22, 103.23, 103.27, 103.28, 103.29, 103.33, 103.37, and
91 103.41.
92 (2) A licensee and authorized vendor must maintain an anti
93 money laundering program in accordance with 31 C.F.R. s.
94 1022.210 103.125. The program must be reviewed and updated as
95 necessary to ensure that the program continues to be effective
96 in detecting and deterring money laundering activities.
97 (3) A licensee must comply with United States Treasury
98 Interpretive Release 2004-1.
99 Section 4. Subsection (1) of section 560.125, Florida
100 Statutes, is amended to read:
101 560.125 Unlicensed activity; penalties.—
102 (1) A person may not engage in the business of a money
103 services business or deferred presentment provider in this state
104 unless the person is licensed or exempted from licensure under
105 this chapter. A deferred presentment transaction conducted by a
106 person not licensed as a deferred presentment provider under
107 this chapter is void, and the unlicensed person has no right to
108 collect, receive, or retain any principal, interest, or charges
109 relating to such transaction.
110 Section 5. Subsections (3) and (4) of section 560.1401,
111 Florida Statutes, are amended to read:
112 560.1401 Licensing standards.—To qualify for licensure as a
113 money services business under this chapter, an applicant must:
114 (3) Be registered as a money services business with the
115 Financial Crimes Enforcement Network as required by 31 C.F.R. s.
116 1022.380 103.41, if applicable.
117 (4) Have an anti-money laundering program in place which
118 meets the requirements of 31 C.F.R. s. 1022.210 103.125.
119 Section 6. Paragraph (d) of subsection (1) of section
120 560.141, Florida Statutes, is amended to read:
121 560.141 License application.—
122 (1) To apply for a license as a money services business
123 under this chapter, the applicant must submit:
124 (d) A copy of the applicant’s written anti-money laundering
125 program required under 31 C.F.R. s. 1022.210 103.125.
126 Section 7. Section 560.304, Florida Statutes, is amended to
127 read:
128 560.304 Exemption from licensure.—The requirement for
129 licensure under this part does not apply to a person cashing
130 payment instruments that have an aggregate face value of less
131 than $1,000 $2,000 per person per day and that are incidental to
132 the retail sale of goods or services whose compensation for
133 cashing payment instruments at each site does not exceed 5
134 percent of the total gross income from the retail sale of goods
135 or services by such person during the last 60 days.
136 Section 8. Subsection (5) of section 560.309, Florida
137 Statutes, is amended to read:
138 560.309 Conduct of business.—
139 (5) A licensee must report all suspicious activity to the
140 office in accordance with the criteria set forth in 31 C.F.R. s.
141 1022.320 103.20. In lieu of filing such reports, the commission
142 may prescribe by rule that the licensee may file such reports
143 with an appropriate regulator.
144 Section 9. This act shall take effect July 1, 2014.