The Florida Senate

560.101  Short title.

560.102  Purpose; application.

560.103  Definitions.

560.104  Exemptions.

560.105  Supervisory powers of the department; rulemaking.

560.106  Construction; standards.

560.107  Liability.

560.1073  False or misleading statements or supporting documents; penalty.

560.108  Administrative enforcement guidelines.

560.109  Investigations, subpoenas, hearings, and witnesses.

560.111  Prohibited acts and practices.

560.112  Procedures for disciplinary actions.

560.113  Injunctions.

560.114  Disciplinary actions.

560.115  Surrender of registration.

560.116  Civil immunity.

560.117  Administrative fines; enforcement.

560.118  Examinations, reports, and internal audits; penalty.

560.119  Deposit of fees and assessments.

560.121  Records; limited restrictions upon public access.

560.123  Florida control of money laundering in the Money Transmitters' Code; reports of transactions involving currency or monetary instruments; when required; purpose; definitions; penalties; corpus delicti.

560.124  Sharing of information.

560.125  Money transmitter business by unauthorized persons; penalties.

560.126  Significant events; notice required.

560.127  Control of a money transmitter.

560.128  Consumer disclosure.

560.129  Confidentiality.

560.101  Short title.--This chapter may be cited as the "Money Transmitters' Code."

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.102  Purpose; application.--The purposes of the code are to:

(1)  Provide general regulatory powers to be exercised by the Department of Banking and Finance in relation to the regulation of the money transmitter industry. The code applies to all money transmitters transacting business in this state and to the enforcement of all laws relating to the money transmitter industry.

(2)  Provide for and promote, subject to the provisions of the code:

(a)  The safe and sound conduct of the business of money transmitters who are subject to the code.

(b)  The maintenance of public confidence in the money transmitter industry.

(c)  The protection of the interests of the public in the money transmitter system.

(d)  The deterrence of the use of money transmitters as a vehicle for money laundering.

(e)  The opportunity for money transmitters to be and remain competitive with each other and with other business organizations existing under the statutes of this state, and with other money transmitters and organizations organized under the laws of other states, the United States, or foreign countries.

(f)  The opportunity for money transmitters to effectively serve the convenience and needs of their customers and the public and to participate in and promote the economic progress and welfare of this state and the United States.

(g)  The opportunity for the management of money transmitter businesses to exercise its business judgment within the framework of the code.

(h)  Only such rulemaking power and administrative discretion to the department as is necessary, in order that the supervision and regulation of money transmitters may be flexible and readily responsive to changes in economic conditions, in technology, and in money transmitter practices.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.103  Definitions.--As used in the code, unless the context otherwise requires:

(1)  "Appropriate regulator" means any state or federal agency, including the department, which has been granted state or federal statutory authority with regard to the money transmission function.

(2)  "Authorized vendor" means a person designated by a registrant to engage in the business of a money transmitter on behalf of the registrant at locations in this state pursuant to a written contract with the registrant.

(3)  "Check casher" means a person who, for compensation, sells currency in exchange for payment instruments received, except travelers checks and foreign-drawn payment instruments.

(4)  "Code" means the "Money Transmitters' Code," consisting of:

(a)  Part I of this chapter, relating to money transmitters generally.

(b)  Part II of this chapter, relating to payment instruments and funds transmission.

(c)  Part III of this chapter, relating to check cashing and foreign currency exchange.

(5)  "Consideration" means and includes any premium charged for the sale of goods, or services provided in connection with the sale of the goods, which is in excess of the cash price of such goods.

(6)  "Currency" means the coin and paper money of the United States or of any other country which is designated as legal tender and which circulates and is customarily used and accepted as a medium of exchange in the country of issuance. Currency includes United States silver certificates, United States notes, and Federal Reserve notes. Currency also includes official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign country.

(7)  "Department" means the Florida Department of Banking and Finance.

(8)  "Foreign currency exchanger" means a person who exchanges, for compensation, currency of the United States or a foreign government to currency of another government.

(9)  "Funds transmitter" means a person who engages in the receipt of currency or payment instruments for the purpose of transmission by any means, including transmissions within this country or to or from locations outside this country, by wire, facsimile, electronic transfer, courier, or otherwise.

(10)  "Money transmitter" means any person located in or doing business in this state who acts as a payment instrument seller, foreign currency exchanger, check casher, or funds transmitter.

(11)  "Money transmitter-affiliated party" means any director, officer, responsible person, employee, authorized vendor, independent contractor of a money transmitter, or a person who has filed, is required to file, or is found to control a money transmitter pursuant to s. 560.127, or any person engaged in any jurisdiction, at any time, in the business of money transmission as a controlling shareholder, director, officer, or responsible person who becomes involved in a similar capacity with a money transmitter registered in this state.

(12)  "Officer" means an individual, whether or not the individual has an official title or receives a salary or other compensation, who participates or has authority to participate, other than in the capacity of a director, in major policymaking functions of the money transmitter business.

(13)  "Outstanding payment instruments" means unpaid payment instruments whose sale has been reported to a registrant.

(14)  "Payment instrument" means a check, draft, warrant, money order, travelers check or other instrument or payment of money, whether or not negotiable. Payment instrument does not include an instrument that is redeemable by the issuer in merchandise or service, a credit card voucher, or a letter of credit.

(15)  "Payment instrument seller" means a person who sells a payment instrument.

(16)  "Person" means any individual, partnership, association, trust, corporation, or other group, however organized, but does not include the governments of the United States or this state or any department, agency, or instrumentality thereof.

(17)  "Registrant" means a person registered by the department pursuant to the code.

(18)  "Responsible person" means a person who is employed by or affiliated with a money transmitter and who has principal active management authority over the business decisions, actions, and activities of the money transmitter in this state.

(19)  "Sell" means to sell, issue, provide, or deliver.

(20)  "Unsafe or unsound practice" means any practice or conduct found by the department to be contrary to generally accepted standards applicable to the specific money transmitter, or a violation of any prior order of an appropriate regulatory agency, which practice, conduct, or violation creates the likelihood of material loss, insolvency, or dissipation of assets of the money transmitter or otherwise materially prejudices the interests of its customers. In making this determination, the department must consider the size and condition of the money transmitter, the magnitude of the loss, the gravity of the violation, and the prior conduct of the person or business involved.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 1, ch. 97-59; s. 2, ch. 2000-360.

560.104  Exemptions.--The following entities are exempt from the provisions of the code:

(1)  Banks, credit card banks, credit unions, trust companies, associations, offices of an international banking corporation, Edge Act or agreement corporations, or other financial depository institutions organized under the laws of any state or the United States, provided that they do not sell payment instruments through authorized vendors who are not such entities.

(2)  The United States or any department, instrumentality, or agency thereof.

(3)  This state or any political subdivision of this state.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.105  Supervisory powers of the department; rulemaking.--Consistent with the purposes of the code, the department shall have:

(1)  Supervision over all money transmitters and their authorized vendors.

(2)  Access to books and records of persons over whom the department exercises supervision as is necessary for the performance of the duties and functions of the department prescribed by the code.

(3)  Power to issue orders and declaratory statements, disseminate information, and otherwise exercise its discretion to effectuate the purposes, policies, and provisions of the code and to adopt rules pursuant to ss. 120.536(1) and 120.54 to implement the provisions of the code.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 185, ch. 98-200.

560.106  Construction; standards.--

(1)  This code shall be liberally construed and applied to promote its purposes and policies.

(2)  The purposes and policies stated in s. 560.102 constitute the standards to be observed by the department in the exercise of its discretionary powers under the code, in the adoption of rules, in the issuance of orders and declaratory statements, in the examination and supervision of money transmitters and their authorized vendors, and in all matters of construction and application of the code required for any determination or action by the department.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.107  Liability.--No person acting, or who has acted, in good faith reliance upon a rule, order, or declaratory statement issued by the department shall be subject to any criminal, civil, or administrative liability for such action, notwithstanding a subsequent decision by a court of competent jurisdiction invalidating the rule, order, or declaratory statement. In the case of an order or a declaratory statement that is not of general application, no person other than the person to whom the order or declaratory statement was issued is entitled to rely upon it, except upon material facts or circumstances that are substantially the same as those upon which the order or declaratory statement was based.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.1073  False or misleading statements or supporting documents; penalty.--Any person who, personally or otherwise, files with the department, or signs as the duly authorized representative for filing with the department, any financial statement or any document in support thereof which is required by law or rule with intent to deceive and with knowledge that the statement or document is materially false or materially misleading commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

History.--s. 3, ch. 2000-360.

560.108  Administrative enforcement guidelines.--

(1)  In imposing any administrative remedy or penalty provided for in the code, the department shall take into account the appropriateness of the penalty with respect to the size of the financial resources and good faith of the person charged, the gravity of the violation, the history of previous violations, and such other matters as justice may require.

(2)  All administrative proceedings pursuant to the code shall be conducted in accordance with chapter 120. Any service required or authorized to be made by the department under the code ¹must be made by certified mail, return receipt requested, delivered to the addressee only by personal delivery or in accordance with chapter 48. The service provided for in this subsection is effective on the date of delivery.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

¹Note.--Section 1, ch. 94-354, used the word "may" instead of "must."

560.109  Investigations, subpoenas, hearings, and witnesses.--

(1)  The department may make investigations, within or outside this state, which it deems necessary in order to determine whether a person has violated any provision of the code or the rules adopted by the department pursuant to the code.

(2)(a)  In the course of or in connection with an investigation by the department pursuant to the provisions of subsection (1) or an investigation or examination in connection with any application to the department for the organization or establishment of a money transmitter business, or in connection with an examination or investigation of a money transmitter or its authorized vendor, the department, or any of its officers holding no lesser title and position than financial examiner or analyst, financial investigator, or attorney at law, may:

1.  Administer oaths and affirmations.

2.  Take or cause to be taken testimony and depositions.

(b)  The department, or any of its officers holding no lesser title than attorney or area financial manager, may issue, revoke, quash, or modify subpoenas and subpoenas duces tecum under the seal of the department or cause any such subpoena or subpoena duces tecum to be issued by any county court judge or clerk of the circuit court or county court to require persons to appear before the department at a reasonable time and place to be therein named and to bring such books, records, and documents for inspection as may be therein designated. Such subpoenas may be served by a representative of the department or may be served as otherwise provided for by law for the service of subpoenas.

(c)  In connection with any such investigation or examination, the department may permit a person to file a statement in writing, under oath or otherwise as the department determines, as to facts and circumstances specified by the department.

(3)(a)  In the event of noncompliance with a subpoena issued or caused to be issued by the department pursuant to this section, the department may petition the circuit court of the county in which the person subpoenaed resides or has its principal place of business for an order requiring the subpoenaed person to appear and testify and to produce such books, records, and documents as are specified in such subpoena duces tecum. The department is entitled to the summary procedure provided in s. 51.011, and the court shall advance the cause on its calendar.

(b)  A copy of the petition shall be served upon the person subpoenaed by any person authorized by this section to serve subpoenas, who shall make and file with the court an affidavit showing the time, place, and date of service.

(c)  At any hearing on any such petition, the person subpoenaed, or any person whose interests will be substantially affected by the investigation, examination, or subpoena, may appear and object to the subpoena and to the granting of the petition. The court may make any order that justice requires in order to protect a party or other person and her or his personal and property rights, including, but not limited to, protection from annoyance, embarrassment, oppression, or undue burden or expense.

(d)  Failure to comply with an order granting, in whole or in part, a petition for enforcement of a subpoena is a contempt of the court.

(4)  Witnesses are entitled to the same fees and mileage to which they ¹would be entitled by law for attending as witnesses in the circuit court, except that no fees or mileage is allowed for testimony of a person taken at the person's principal office or residence.

(5)  Reasonable and necessary costs incurred by the department and payable to persons involved with investigations may be assessed against any person on the basis of actual costs incurred. Assessable expenses include, but are not limited to: expenses for interpreters; expenses for communications; expenses for legal representation; expenses for economic, legal, or other research, analyses, and testimony; and fees and expenses for witnesses. The failure to reimburse the department is a ground for denial of the registration application or for revocation of any approval thereof. No such costs shall be assessed against a person unless the department has determined that the person has operated or is operating in violation of the code.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 837, ch. 97-103.

¹Note.--Section 1, ch. 94-354, used the word "might" instead of "would."

560.111  Prohibited acts and practices.--

(1)  It is unlawful for any money transmitter or money transmitter-affiliated party to:

(a)  Receive or possess itself of any property otherwise than in payment of a just demand, and, with intent to deceive or defraud, to omit to make or cause to be made a full and true entry thereof in its books and accounts, or to concur in omitting to make any material entry thereof;

(b)  Embezzle, abstract, or misapply any money, property, or thing of value of the money transmitter or authorized vendor with intent to deceive or defraud such money transmitter or authorized vendor;

(c)  Make any false entry in any book, report, or statement of such money transmitter or authorized vendor with intent to deceive or defraud such money transmitter, authorized vendor, or another person, or with intent to deceive the department, any other state or federal regulatory agency, or any authorized representative appointed to examine or investigate the affairs of such money transmitter or authorized vendor;

(d)  Engage in an act that violates 18 U.S.C. s. 1956, 31 U.S.C. s. 5324, or any other law, rule, or regulation of another state or of the United States relating to the business of money transmission or usury which may cause the denial or revocation of a money transmitter license or registration in such jurisdiction;

(e)  Deliver or disclose to the department or any of its employees any examination report, report of condition, report of income and dividends, audit, account, statement, or document known by it to be fraudulent or false as to any material matter; or

(f)  Place among the assets of such money transmitter or authorized vendor any note, obligation, or security that the money transmitter or authorized vendor does not own or that to the person's knowledge is fraudulent or otherwise worthless, or for any such person to represent to the department that any note, obligation, or security carried as an asset of such money transmitter or authorized vendor is the property of the money transmitter or authorized vendor and is genuine if it is known to such person that such representation is false or that such note, obligation, or security is fraudulent or otherwise worthless.

(2)  It is unlawful for any person to knowingly execute, or attempt to execute, a scheme or artifice to defraud a money transmitter or authorized vendor, or to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a money transmitter or authorized vendor, by means of false or fraudulent pretenses, representations, or promises.

(3)  Any person who violates any provision of this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 2, ch. 97-59; s. 4, ch. 2000-360.

560.112  Procedures for disciplinary actions.--

(1)  The department may issue and serve upon any person a complaint stating charges whenever the department has reason to believe that such person has engaged in or is engaging in conduct described in s. 560.114.

(2)  The complaint must contain the statement of facts and notice of opportunity for a hearing pursuant to ss. 120.569 and 120.57.

(3)  If no hearing is requested within the time allowed by ss. 120.569 and 120.57, or if a hearing is held and the department finds that any of the charges are true, the department may enter an order directing the money transmitter, the money transmitter-affiliated party, or the person named therein to cease and desist from engaging in the conduct complained of and to take reasonable corrective action. The department may also issue an order suspending or barring any money transmitter-affiliated party from continuing to be employed by or associated with any money transmitter or authorized vendor during the period such order is in effect.

(4)  If any person named in such order fails to respond to the complaint within the time allotted in ss. 120.569 and 120.57, such failure constitutes a default and justifies the entry of a cease and desist order or removal order.

(5)  A contested or default cease and desist order or removal order, pursuant to subsections (3) and (4), is effective when reduced to writing and served upon the money transmitter, the money transmitter-affiliated party, or the person named therein. An uncontested cease and desist order or removal order is effective as agreed.

(6)  Whenever the department finds that conduct described in s. 560.114 is likely to cause substantial dissipation of assets or earnings of the money transmitter or, insolvency or substantial prejudice to the customers of the money transmitter or authorized vendor, it may issue an emergency removal order or an emergency cease and desist order requiring any person to disassociate itself from participating in the affairs of the money transmitter or authorized vendor or to immediately cease and desist from engaging in the conduct complained of and to take corrective action. The emergency order is effective immediately upon service of the order upon the person and remains effective for 90 days. Such person may object to the issuance of the emergency order pursuant to the provisions of chapter 120. Such objection must be in writing and must include a request for a formal hearing, which is to be promptly instituted and acted upon. If the department begins nonemergency proceedings under subsection (1), the emergency order remains effective until the conclusion of the proceedings under ss. 120.569 and 120.57.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 252, ch. 96-410.

560.113  Injunctions.--Whenever a violation of the code is threatened or impending and such violation will cause substantial injury to any person, the circuit court has jurisdiction to hear any complaint filed by the department and, upon proper showing, to issue an injunction restraining such violation or granting other such appropriate relief.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.114  Disciplinary actions.--

(1)  The following actions by a money transmitter or money transmitter-affiliated party are violations of the code and constitute grounds for the issuance of a cease and desist order, the issuance of a removal order, the denial of a registration application or the suspension or revocation of any registration previously issued pursuant to the code, or the taking of any other action within the authority of the department pursuant to the code:

(a)  Failure to comply with any provision of the code, any rule or order adopted pursuant thereto, or any written agreement entered into with the department.

(b)  Fraud, misrepresentation, deceit, or gross negligence in any transaction involving money transmission, regardless of reliance thereon by, or damage to, a money transmitter customer.

(c)  Fraudulent misrepresentation, circumvention, or concealment of any matter required to be stated or furnished to a money transmitter customer pursuant to the code, regardless of reliance thereon by, or damage to, such customer.

(d)  False, deceptive, or misleading advertising.

(e)  Failure to maintain, preserve, and keep available for examination all books, accounts, or other documents required by the code, by any rule or order adopted pursuant to the code, or by any agreement entered into with the department.

(f)  Refusal to permit the examination or inspection of books and records in an investigation or examination by the department, pursuant to the provisions of the code, or to comply with a subpoena issued by the department.

(g)  Failure to pay a judgment recovered in any court in this state by a claimant in an action arising out of a money transmission transaction within 30 days after the judgment becomes final.

(h)  Engaging in an act or practice proscribed by s. 560.111.

(i)  Insolvency or operating in an unsafe and unsound manner.

(j)  Failure by a money transmitter to remove a money transmitter-affiliated party after the department has issued and served upon the money transmitter a final order setting forth a finding that the money transmitter-affiliated party has violated any provision of the code.

(k)  Making any material misstatement or misrepresentation or committing any fraud in an initial or renewal application for registration.

(l)  Committing any act resulting in an application for registration, or a registration or its equivalent, to practice any profession or occupation being denied, suspended, revoked, or otherwise acted against by a registering authority in any jurisdiction or a finding by an appropriate regulatory body of engaging in unlicensed activity as a money transmitter within any jurisdiction.

(m)  Committing any act resulting in a registration or its equivalent, or an application for registration, to practice any profession or occupation being denied, suspended, or otherwise acted against by a registering authority in any jurisdiction for a violation of 18 U.S.C. s. 1956, 31 U.S.C. s. 5324, or any other law, rule, or regulation of another state or of the United States relating to the business of money transmission or usury which may cause the denial or revocation of a money transmitter license or registration in such jurisdiction.

(n)  Having been convicted of or found guilty of, or having pleaded guilty or nolo contendere to, any felony or crime punishable by imprisonment of 1 year or more under the law of any state or of the United States which involves fraud, moral turpitude, or dishonest dealing, without regard to whether a judgment of conviction has been entered by the court.

(o)  Having been convicted of or found guilty of, or having pleaded guilty or nolo contendere to, a crime under 18 U.S.C. s. 1956 or 31 U.S.C. s. 5324, without regard to whether a judgment of conviction has been entered by the court.

(p)  Having been convicted of or found guilty of, or having pleaded guilty or nolo contendere to, misappropriation, conversion, or unlawful withholding of moneys that belong to others and were received in the conduct of the business of the money transmitter.

(q)  Failure to inform the department in writing within 15 days after pleading guilty or nolo contendere to, or being convicted or found guilty of, any felony or crime punishable by imprisonment of 1 year or more under the law of any state or of the United States, or of any crime involving fraud, moral turpitude, or dishonest dealing, without regard to whether a judgment of conviction has been entered by the court.

(r)  Aiding, assisting, procuring, advising, or abetting any person in violating a provision of this code or any order or rule of the department.

(s)  Failure to timely pay any fee, charge, or fine under the code.

(t)  Failure to pay any judgment entered by any court within 30 days after the judgment becomes final.

(u)  Engaging or holding oneself out to be engaged in the business of a money transmitter without the proper registration.

(v)  Any action that would be grounds for denial of a registration or for revocation, suspension, or restriction of a registration previously granted under part III of this chapter.

(2)  The department may issue a cease and desist order or removal order, suspend or revoke any previously issued registration, or take any other action within the authority of the department against a money transmitter based on any fact or condition that exists and that, if it had existed or been known to exist at the time the money transmitter applied for registration, would have been grounds for denial of registration.

(3)  Each money transmitter is responsible for any act of its authorized vendors if the money transmitter should have known of the act or if the money transmitter has actual knowledge that such act is a violation of the code and the money transmitter willfully allowed such act to continue. Such responsibility is limited to conduct engaged in by the authorized vendor pursuant to the authority granted to it by the money transmitter.

(4)  If a registration granted under this code expires or is surrendered by the registrant during the pendency of an administrative action under this code, the proceeding may continue as if the registration were still in effect.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 3, ch. 97-59; s. 5, ch. 2000-360.

560.115  Surrender of registration.--Any money transmitter registered pursuant to the code may voluntarily surrender its registration at any time by giving written notice to the department.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.116  Civil immunity.--Any person having reason to believe that a provision of the code is being violated, or has been violated, or is about to be violated, may file a complaint with the department setting forth the details of the alleged violation. An immunity from civil liability is hereby granted to any person who furnishes such information, unless the information provided is false and the person providing the information does so with reckless disregard for the truth.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.117  Administrative fines; enforcement.--

(1)  The department may, by complaint, initiate a proceeding pursuant to chapter 120 to impose an administrative fine against any person found to have violated any provision of the code or a cease and desist order of the department or any written agreement with the department. However, the department shall give notice, in writing, if it suspects that the licensee has violated any of the following provisions of the code and shall give the licensee 15 days after actual notice is served on the person within which to correct the violation before bringing disciplinary action under the code:

(a)  Failure to timely pay any fee, charge, or fine under the code;

(b)  Failure to pay any judgment entered by any court within 30 days after the judgment becomes final;

(c)  Failure to notify the department of a change of control of a money transmitter as required by s. 560.127; or

(d)  Failure to notify the department of any change of address or fictitious name as required by s. 560.205.

Except as provided in this section, such fine may not exceed $100 a day for each violation. The department may excuse any such fine with a showing of good cause by the person being fined.

(2)  If the department finds that one or more grounds exist for the suspension, revocation, or refusal to renew or continue a license or registration issued under this chapter, the department may, in addition to or in lieu of suspension, revocation, or refusal to renew or continue a license or registration, impose a fine in an amount up to $10,000 for each violation of this chapter.

(3)  Notwithstanding any other provision of this section, the department may impose a fine not to exceed $1,000 per day for each day that a person violates the code by engaging in the business of a money transmitter without being registered.

(4)  Any administrative fine levied by the department may be enforced by the department by appropriate proceedings in the circuit court of the county in which such person resides or maintains a principal office. In any administrative or judicial proceeding arising under this section, a party may elect to correct the violation asserted by the department and, upon the party's doing so, any fine ceases to accrue; however, an election to correct the violation does not render moot any administrative or judicial proceeding.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 6, ch. 2000-360.

560.118  Examinations, reports, and internal audits; penalty.--

(1)(a)  The department may conduct an examination of a money transmitter or authorized vendor by providing not less than 15 days' advance notice to the money transmitter or authorized vendor. However, if the department suspects that the money transmitter or authorized vendor has violated any provisions of this code or any criminal laws of this state or of the United States or is engaging in an unsafe and unsound practice, the department may, at any time without advance notice, conduct an examination of all affairs, activities, transactions, accounts, business records, and assets of any money transmitter or any money transmitter-affiliated party for the protection of the public. For the purpose of examinations, the department may administer oaths and examine a money transmitter or any of its affiliated parties concerning their operations and business activities and affairs. The department may accept an audit or examination from any appropriate regulatory agency or from an independent third party with respect to the operations of a money transmitter or an authorized vendor. The department may also make a joint or concurrent examination with any state or federal regulatory agency. The department may furnish a copy of all examinations made of such money transmitter or authorized vendor to the money transmitter and any appropriate regulatory agency provided that such agency agrees to abide by the confidentiality provisions as set forth in chapter 119.

(b)  Persons subject to this chapter who are examined shall make available to the department or its examiners the accounts, records, documents, files, information, assets, and matters which are in their immediate possession or control and which relate to the subject of the examination. Those accounts, records, documents, files, information, assets, and matters not in their immediate possession shall be made available to the department or the department's examiners within 10 days after actual notice is served on such persons.

(c)  The audit of a money transmitter required under this section may be performed by an independent third party that has been approved by the department or by a certified public accountant authorized to do business in the United States. The examination of a money transmitter or authorized vendor required under this section may be performed by an independent third party that has been approved by the department or by a certified public accountant authorized to do business in the United States. The cost of such an independent examination or audit shall be directly borne by the money transmitter or authorized vendor.

(d)  The department may recover the costs of a regular examination and supervision of a money transmitter or authorized vendor; however, the department may not recover the costs of more than one examination in any 12-month period unless the department has determined that the money transmitter or authorized vendor is operating in an unsafe or unsound or unlawful manner.

(e)  The department may, by rule, set a maximum per-day examination cost for a regular examination. Such per-day cost may be less than that required to fully compensate the department for costs associated with the examination. For the purposes of this section, "costs" means the salary and travel expenses directly attributable to the field staff examining the money transmitter or authorized vendor, and the travel expenses of any supervisory staff required as a result of examination findings. Reimbursement for such costs incurred under this subsection must be postmarked no later than 30 days after the date of receipt of a notice stating that such costs are due. The department may levy a late payment penalty of up to $100 per day or part thereof that a payment is overdue, unless the late payment penalty is excused for good cause. In excusing any such late payment penalty, the department may consider the prior payment history of the money transmitter or authorized vendor.

(2)(a)  Annual financial reports that are required to be filed under the code or any rules adopted thereunder must be audited by an independent third party that has been approved by the department or by a certified public accountant authorized to do business in the United States. The money transmitter or authorized vendor shall directly bear the cost of the audit. This paragraph does not apply to any seller of payment instruments who can prove to the satisfaction of the department that it has a combined total of fewer than 50 employees and authorized vendors or that its annual payment instruments issued from its activities as a payment instrument seller are less than $200,000.

(b)  The department may, by rule, require each money transmitter or authorized vendor to submit quarterly reports to the department. The department may require that each report contain a declaration by an officer, or any other responsible person authorized to make such declaration, that the report is true and correct to the best of her or his knowledge and belief. Such report must include such information as the department by rule requires for that type of money transmitter.

(c)  The department may levy an administrative fine of up to $100 per day for each day the report is past due, unless it is excused for good cause. In excusing any such administrative fine, the department may consider the prior payment history of the money transmitter or authorized vendor.

(3)  Any person who willfully violates this section or fails to comply with any lawful written demand or order of the department made under this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 4, ch. 97-59; s. 838, ch. 97-103; s. 61, ch. 99-5; s. 7, ch. 2000-360.

560.119  Deposit of fees and assessments.--The application fees, registration renewal fees, examination fees, late payment penalties, civil penalties, administrative fines, and other fees or penalties provided for in the code shall, in all cases, be paid directly to the department, which shall deposit such proceeds into the Financial Institutions' Regulatory Trust Fund. Each year, the Legislature shall appropriate from the trust fund to the department sufficient moneys to pay the department's costs for administration of the code. The Financial Institutions' Regulatory Trust Fund is subject to the service charge imposed pursuant to chapter 215.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.121  Records; limited restrictions upon public access.--

(1)(a)  Orders of courts or of administrative law judges for the production of confidential records or information shall provide for inspection in camera by the court or the administrative law judge and, after the court or administrative law judge has made a determination that the documents requested are relevant or would likely lead to the discovery of admissible evidence, said documents shall be subject to further orders by the court or the administrative law judge to protect the confidentiality thereof. Any order directing the release of information shall be immediately reviewable, and a petition by the department for review of such order shall automatically stay further proceedings in the trial court or the administrative hearing until the disposition of such petition by the reviewing court. If any other party files such a petition for review, it will operate as a stay of such proceedings only upon order of the reviewing court.

(b)  Confidential records and information furnished pursuant to a legislative subpoena shall be kept confidential by the legislative body or committee which receives the records or information, except in a case involving investigation of charges against a public official subject to impeachment or removal, and then disclosure of such information shall be only to the extent determined by the legislative body or committee to be necessary.

(2)  Examination reports, investigatory records, applications, and related information compiled by the department, or photographic copies thereof, shall be retained by the department for a period of at least 10 years.

(3)  A copy of any document on file with the department which is certified by the department as being a true copy may be introduced in evidence as if it were the original. The department shall establish a schedule of fees for preparing true copies of documents.

(4)  Any person who willfully discloses information made confidential by this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 253, ch. 96-410.

560.123  Florida control of money laundering in the Money Transmitters' Code; reports of transactions involving currency or monetary instruments; when required; purpose; definitions; penalties; corpus delicti.--

(1)  This section may be cited as the "Florida Control of Money Laundering in Money Transmitters Act."

¹(2)  It is the purpose of this section to require the submission to the department of reports and the maintenance of certain records of transactions involving currency or monetary instruments which reports and records deter the use of money transmitters to conceal proceeds from criminal activity and are useful in criminal, tax, or regulatory investigations or proceedings.

(a)  Every money transmitter shall keep a record of each financial transaction occurring in this state known to it to involve currency or other monetary instrument, as the department prescribes by rule, of a value in excess of $10,000, to involve the proceeds of specified unlawful activity, or to be designed to evade the reporting requirements of this section or chapter 896 and shall maintain appropriate procedures to ensure compliance with this section and chapter 896.

(b)  Multiple financial transactions shall be treated as a single transaction if the money transmitter has knowledge that they are made by or on behalf of any person and result in either cash in or cash out totaling more than $10,000 during any day.

(c)  Any money transmitter may keep a record of any financial transaction occurring in this state, regardless of the value, if it suspects that the transaction involves the proceeds of specified unlawful activity.

(d)  A money transmitter, or officer, employee, or agent thereof, that files a report in good faith pursuant to this section is not liable to any person for loss or damage caused in whole or in part by the making, filing, or governmental use of the report, or any information contained therein.

(3)  Money transmitters must adhere to the money laundering, enforcement, and reporting provisions of s. 655.50, relating to reports of transactions involving currency transactions and monetary instruments, and of chapter 896, concerning offenses relating to financial transactions.

(4)  In enforcing this section, the department shall acknowledge and take into consideration the requirements of Title 31, United States Code, both to reduce the burden of fulfilling duplicate requirements and to acknowledge the economic advantage of having similar reporting and recordkeeping requirements between state and federal regulatory authorities.

(5)(a)  Each money transmitter must file a report with the department of the record required by this section. Each record filed pursuant to this section must be filed at such time and contain such information as the department requires by rule.

(b)  The timely filing of the report required by 31 U.S.C. s. 5313, with the appropriate federal agency is deemed compliance with the reporting requirements of this subsection unless the reports are not regularly and comprehensively transmitted by the federal agency to the department.

(6)  The department must retain a copy of all reports received under subsection (5) for a minimum of 5 calendar years after receipt of the report. However, if a report or information contained in a report is known by the department to be the subject of an existing criminal proceeding, the report must be retained for a minimum of 10 calendar years from the date of receipt.

(7)  In addition to any other powers conferred upon the department to enforce and administer the code, the department may:

(a)  Bring an action in any court of competent jurisdiction to enforce or administer this section. In such action, the department may seek award of any civil penalty authorized by law and any other appropriate relief at law or equity.

(b)  Issue and serve upon a person an order requiring such person to cease and desist and take corrective action whenever the department finds that such person is violating, has violated, or is about to violate any provision of this section or chapter 896; any rule or order adopted under this section or chapter 896; or any written agreement related to this section or chapter 896 which is entered into with the department.

(c)  Issue and serve upon a person an order suspending or revoking such person's money transmitter registration whenever the department finds that such person is violating, has violated, or is about to violate any provision of this section or chapter 896; any rule or order adopted under this section or chapter 896; or any written agreement related to this section or chapter 896 which is entered into with the department.

(d)  Issue and serve upon any person an order of removal whenever the department finds that such person is violating, has violated, or is about to violate any provision of this section or chapter 896; any rule or order adopted under this section or chapter 896; or any written agreement related to this section or chapter 896 which is entered into with the department.

(e)  Impose and collect an administrative fine against any person found to have violated any provision of this section or chapter 896; any rule or order adopted under this section or chapter 896; or any written agreement related to this section or chapter 896 which is entered into with the department, in an amount not exceeding $10,000 a day for each willful violation or $500 a day for each negligent violation.

(8)(a)  Except as provided in paragraph (b), a person who willfully violates any provision of this section commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.

(b)  A person who willfully violates any provision of this section, if the violation involves:

1.  Currency or payment instruments exceeding $300 but less than $20,000 in any 12-month period, commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

2.  Currency or payment instruments totaling or exceeding $20,000 but less than $100,000 in any 12-month period, commits a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

3.  Currency or payment instruments totaling or exceeding $100,000 in any 12-month period, commits a felony of the first degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(c)  In addition to the penalties otherwise authorized by s. 775.082, s. 775.083, or s. 775.084, a person who has been convicted of or who has pleaded guilty or nolo contendere to having violated paragraph (b) may be sentenced to pay a fine not exceeding $250,000 or twice the value of the currency or payment instruments, whichever is greater, except that on a second or subsequent conviction for or plea of guilty or nolo contendere to a violation of paragraph (b), the fine may be up to $500,000 or quintuple the value of the currency or payment instruments, whichever is greater.

(d)  A person who violates this section is also liable for a civil penalty of not more than the greater of the value of the currency or payment instruments involved or $25,000.

(9)  In any prosecution brought pursuant to this section, the common law corpus delicti rule does not apply. The defendant's confession or admission is admissible during trial without the state having to prove the corpus delicti if the court finds in a hearing conducted outside the presence of the jury that the defendant's confession or admission is trustworthy. Before the court admits the defendant's confession or admission, the state must prove by a preponderance of the evidence that there is sufficient corroborating evidence that tends to establish the trustworthiness of the statement by the defendant. Hearsay evidence is admissible during the presentation of evidence at the hearing. In making its determination, the court may consider all relevant corroborating evidence, including the defendant's statements.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 8, ch. 2000-360.

¹Note.--As enacted by s. 1, ch. 94-238. The introductory paragraph of subsection (2), as enacted by s. 1, ch. 94-354, reads:

(2)  It is the purpose of this section to require submission to the department of certain reports and maintenance of certain records of transactions involving currency or monetary instruments when such reports and records deter the use of money transmitters to conceal the proceeds of criminal activity and have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings.

560.124  Sharing of information.--

(1)  It is not unlawful for any person to provide information to a money transmitter, authorized vendor, or appropriate regulator, or for any money transmitter, authorized vendor, or appropriate regulator to provide information to any person, about any other person's known or suspected involvement in a violation of any state, federal, or foreign law, rule, or regulation relating to the business of a money transmitter which has been reported to state, federal, or foreign authorities.

(2)  No person shall be liable in any civil action for providing such information.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.125  Money transmitter business by unauthorized persons; penalties.--

(1)  A person other than a registered money transmitter or authorized vendor may not engage in the business of a money transmitter in this state unless the person is exempted from the registration requirements of the code.

(2)  No person shall act as a vendor of a money transmitter when such money transmitter is subject to registration under the code but has not registered. Any such person becomes the principal thereof, and no longer merely acts as a vendor, and such person is liable to the holder or remitter as a principal money transmitter.

(3)  Any person whose substantial interests are affected by a proceeding brought by the department pursuant to the code may, pursuant to s. 560.113, petition any court to enjoin the person or activity that is the subject of the proceeding from violating any of the provisions of this section. For the purpose of this subsection, any money transmitter registered pursuant to the code, any person residing in this state, and any person whose principal place of business is in this state are presumed to be substantially affected. In addition, the interests of a trade organization or association are deemed substantially affected if the interests of any of its members are so affected.

(4)  The department may issue and serve upon any person who violates any of the provisions of this section a complaint seeking a cease and desist order in accordance with the procedures and in the manner prescribed by s. 560.112. The department may also impose an administrative fine pursuant to s. 560.117(3) against any person who violates any of the provisions of this section.

(5)  A person who violates this section, if the violation involves:

(a)  Currency or payment instruments exceeding $300 but less than $20,000 in any 12-month period, commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(b)  Currency or payment instruments totaling or exceeding $20,000 but less than $100,000 in any 12-month period, commits a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(c)  Currency or payment instruments totaling or exceeding $100,000 in any 12-month period, commits a felony of the first degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(6)  In addition to the penalties authorized by s. 775.082, s. 775.083, or s. 775.084, a person who has been found guilty of or who has pleaded guilty or nolo contendere to having violated this section may be sentenced to pay a fine not exceeding $250,000 or twice the value of the currency or payment instruments, whichever is greater, except that on a second or subsequent violation of this section, the fine may be up to $500,000 or quintuple the value of the currency or payment instruments, whichever is greater.

(7)  A person who violates this section is also liable for a civil penalty of not more than the value of the currency or payment instruments involved or $25,000, whichever is greater.

(8)  In any prosecution brought pursuant to this section, the common law corpus delicti rule does not apply. The defendant's confession or admission is admissible during trial without the state having to prove the corpus delicti if the court finds in a hearing conducted outside the presence of the jury that the defendant's confession or admission is trustworthy. Before the court admits the defendant's confession or admission, the state must prove by a preponderance of the evidence that there is sufficient corroborating evidence that tends to establish the trustworthiness of the statement by the defendant. Hearsay evidence is admissible during the presentation of evidence at the hearing. In making its determination, the court may consider all relevant corroborating evidence, including the defendant's statements.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 9, ch. 2000-360.

560.126  Significant events; notice required.--Unless exempted by the department, every money transmitter must provide the department with a written notice within 15 days after the occurrence or knowledge of, whichever period of time is greater, any of the following events:

(1)  The filing of a petition under the United States Bankruptcy Code for bankruptcy or reorganization by the money transmitter.

(2)  The commencement of any registration suspension or revocation proceeding, either administrative or judicial, or the denial of any original registration request or a registration renewal, by any state, the District of Columbia, any United States territory, or any foreign country, in which the money transmitter operates or plans to operate or has registered to operate.

(3)  A felony indictment relating to the money transmission business involving the money transmitter or a money transmitter-affiliated party of the money transmitter.

(4)  The felony conviction, guilty plea, or plea of nolo contendere, if the court adjudicates the nolo contendere pleader guilty, or the adjudication of guilt of a money transmitter or money transmitter-affiliated party.

(5)  The interruption of any corporate surety bond required by the code.

(6)  Any suspected criminal act, as defined by the department by rule, perpetrated in this state against a money transmitter or authorized vendor.

However, no liability shall be incurred by any person as a result of making a good faith effort to fulfill this disclosure requirement.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.127  Control of a money transmitter.--

(1)  A person has control over a money transmitter if:

(a)  The person directly or indirectly or acting through one or more other persons owns, controls, or has power to vote 25 percent or more of any class of voting securities of the money transmitter; or

(b)  The department determines, after notice and opportunity for hearing, that the person directly or indirectly exercises a controlling influence over the activities of the money transmitter.

(2)  In any case in which a person or a group of persons, directly or indirectly or acting by or through one or more persons, proposes to purchase or acquire a controlling interest in a money transmitter, and thereby to change the control of that money transmitter, each person or group of persons shall provide written notice to the department.

(a)  A money transmitter whose stock is traded on an organized stock exchange shall provide the department with written notice within 15 days after knowledge of such change in control.

(b)  A money transmitter whose stock is not publicly traded shall provide the department with not less than 30 days' prior written notice of such proposed change in control.

(3)  After a review of the written notification, the department may require the money transmitter to provide additional information relating to other and former addresses, and the reputation, character, responsibility, and business affiliations, of the proposed new owner or each of the proposed new owners of the money transmitter.

(a)  The department may deny the person or group of persons proposing to purchase, or who have acquired control of, a money transmitter if, after investigation, the department determines that the person or persons are not qualified by reputation, character, experience, or financial responsibility to control or operate the money transmitter in a legal and proper manner and that the interests of the other stockholders, if any, or the interests of the public generally may be jeopardized by the proposed change in ownership, controlling interest, or management.

(b)  The department may disapprove any person who has been convicted of, or pled guilty or nolo contendere to, a violation of s. 560.123, s. 655.50, chapter 896, or any similar state, federal, or foreign law.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354.

560.128  Consumer disclosure.--

(1)  Every money transmitter and authorized vendor shall provide each consumer of a money transmitter transaction a toll-free telephone number for the purpose of consumer contacts; however, in lieu of such toll-free telephone number, the money transmitter or authorized vendor may provide the address and telephone number of the department.

(2)  The department may by rule require every money transmitter to display its registration at each location, including the location of each person designated by the registrant as an authorized vendor, where the money transmitter engages in the activities authorized by the registration.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 5, ch. 97-59.

560.129  Confidentiality.--

(1)  For purposes of this section, the definitions contained in s. 560.103, as created by chapter 94-238, Laws of Florida, and chapter 94-354, Laws of Florida, apply.

(2)(a)  Except as otherwise provided in this section, all information concerning an investigation or examination by the department pursuant to this chapter, including any consumer complaint, is confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution until the investigation or examination ceases to be active. For purposes of this section, an investigation or examination is considered "active" so long as the department or any other administrative, regulatory, or law enforcement agency of any jurisdiction is proceeding with reasonable dispatch and has a reasonable good faith belief that action may be initiated by the department or other administrative, regulatory, or law enforcement agency.

(b)  Notwithstanding paragraph (a), all information obtained by the department in the course of its investigation or examination which is a trade secret, as defined in s. 688.002, or which is personal financial information shall remain confidential. If any administrative, civil, or criminal proceeding against the money transmitter or a money transmitter-affiliated party is initiated and the department seeks to use matter that a registrant believes to be a trade secret or personal financial information, such records shall be subject to an in camera review by the administrative law judge, if the matter is before the Division of Administrative Hearings, or a judge of any court of this state, any other state, or the United States, as appropriate, for the purpose of determining if the matter is a trade secret or is personal financial information. If it is determined that the matter is a trade secret, the matter shall remain confidential. If it is determined that the matter is personal financial information, the matter shall remain confidential unless the administrative law judge or judge determines that, in the interests of justice, the matter should become public.

(c)  If any administrative, civil, or criminal proceeding against the money transmitter or a money transmitter-affiliated party results in an acquittal or the dismissal of all of the allegations against the money transmitter or a money transmitter-affiliated party, upon the request of any party, the administrative law judge or the judge may order all or a portion of the record of the proceeding to be sealed, and it shall thereafter be confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

(d)  Except as necessary for the department or any other administrative, regulatory, or law enforcement agency of any jurisdiction to enforce the provisions of this chapter or the law of any other state or the United States, a consumer complaint and other information concerning an investigation or examination shall remain confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution after the investigation or examination ceases to be active to the extent that disclosure would:

1.  Jeopardize the integrity of another active investigation;

2.  Reveal personal financial information;

3.  Reveal the identity of a confidential source; or

4.  Reveal investigative techniques or procedures.

(3)  This section does not prevent or restrict:

(a)  Furnishing records or information to any appropriate regulatory agency if such agency adheres to the confidentiality provisions of the code;

(b)  Furnishing records or information to an independent third party or a certified public accountant who has been approved by the department to conduct an examination under s. 560.118(1)(b), if the independent third party or certified public accountant adheres to the confidentiality provisions of the code; or

(c)  Reporting any suspected criminal activity, with supporting documents and information, to appropriate law enforcement or prosecutorial agencies.

(4)  All quarterly reports submitted by a money transmitter to the department under s. 560.118(2)(b) are confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

(5)  Examination reports, investigatory records, applications, and related information compiled by the department, or photographic copies thereof, shall be retained by the department for a period of at least 10 years.

(6)  Any person who willfully discloses information made confidential by this section commits a felony of the third degree, punishable as provided in s. 775.082 or s. 775.083.

History.--ss. 1, 2, ch. 94-281; s. 345, ch. 96-406; s. 254, ch. 96-410; s. 66, ch. 2000-154; s. 1, ch. 2000-293.

560.200  Short title.

560.202  Definitions.

560.203  Exemptions.

560.204  Requirement of registration.

560.205  Qualifications of applicant for registration; contents.

560.206  Investigation of applicants.

560.207  Renewal of registration; registration fee.

560.208  Conduct of business.

560.209  Net worth; corporate surety bond; collateral deposit in lieu of bond.

560.210  Permissible investments.

560.211  Records.

560.212  Financial liability.

560.213  Payment instrument information.

560.200  Short title.--This part may be cited as the "Payment Instruments and Funds Transmission Act."

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.202  Definitions.--In addition to the definitions provided in s. 560.103, for purposes of this part, unless otherwise clearly indicated by the context:

(1)  "Applicant" means a person filing an application for registration under this part.

(2)  "Location" means a branch of the registrant or an authorized vendor where business activity regulated by this part occurs.

(3)  "Registered activity" means the activities that a registrant engages in within this state and for which registration has been issued or should be issued.

(4)  "Registrant" means a person registered by the department pursuant to this part.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.203  Exemptions.--Authorized vendors of a registrant acting within the scope of authority conferred by the registrant shall be exempt from having to register pursuant to the code but shall otherwise be subject to its provisions.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.204  Requirement of registration.--

(1)  No person shall engage for consideration, nor in any manner advertise that they engage, in the selling or issuing of payment instruments or in the activity of a funds transmitter, without first obtaining registration under the provisions of this part.

(2)  A person registered pursuant to this part is permitted to engage in the activities authorized by this part. A person registered pursuant to this part may also engage in the activities authorized under part III.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.205  Qualifications of applicant for registration; contents.--

(1)  To qualify for registration under this part, an applicant must demonstrate to the department such character and general fitness as to command the confidence of the public and warrant the belief that the registered business will be operated lawfully and fairly. The department may investigate each applicant to ascertain whether the qualifications and requirements prescribed by this part have been met. The department's investigation may include a criminal background investigation of all controlling shareholders, principals, officers, directors, members, and responsible persons of a funds transmitter and a payment instrument seller and all persons designated by a funds transmitter or payment instrument seller as an authorized vendor. Each controlling shareholder, principal, officer, director, member, and responsible person of a funds transmitter or payment instrument seller, unless the applicant is a publicly traded corporation, a subsidiary thereof, or a subsidiary of a bank or bank holding company, shall file a complete set of fingerprints taken by an authorized law enforcement officer. Such fingerprints must be submitted to the Department of Law Enforcement or the Federal Bureau of Investigation for state and federal processing. The department may waive by rule the requirement that applicants file a set of fingerprints or the requirement that such fingerprints be processed by the Department of Law Enforcement or the Federal Bureau of Investigation.

(2)  Each application for registration must be submitted under oath to the department on such forms as the department prescribes by rule and must be accompanied by a nonrefundable investigation fee. Such fee may not exceed $500 and may be waived by the department for just cause. The application forms shall set forth such information as the department reasonably requires, including, but not limited to:

(a)  The name and address of the applicant, including any fictitious or trade names used by the applicant in the conduct of its business.

(b)  The history of the applicant's material litigation, criminal convictions, pleas of nolo contendere, and cases of adjudication withheld.

(c)  A description of the activities conducted by the applicant, the applicant's history of operations, and the business activities in which the applicant seeks to engage in this state.

(d)  A list identifying the applicant's proposed authorized vendors in this state, including the location or locations in this state at which the applicant and its authorized vendors propose to conduct registered activities.

(e)  A sample authorized vendor contract, if applicable.

(f)  A sample form of payment instrument, if applicable.

(g)  The name and address of the clearing financial institution or financial institutions through which the applicant's payment instruments will be drawn or through which such payment instruments will be payable.

(h)  Documents revealing that the net worth and bonding requirements specified in s. 560.209 have been or will be fulfilled.

(3)  Each application for registration by an applicant that is a corporation shall also set forth such information as the department reasonably requires, including, but not limited to:

(a)  The date of the applicant's incorporation and state of incorporation.

(b)  A certificate of good standing from the state or country in which the applicant was incorporated.

(c)  A description of the corporate structure of the applicant, including the identity of any parent or subsidiary of the applicant, and the disclosure of whether any parent or subsidiary is publicly traded on any stock exchange.

(d)  The name, business and residence addresses, and employment history for the past 5 years for each executive officer, each director, each controlling shareholder, and the responsible person who will be in charge of all the applicant's business activities in this state.

(e)  The history of material litigation and criminal convictions, pleas of nolo contendere, and cases of adjudication withheld for each executive officer, each director, each controlling shareholder, and the responsible person who will be in charge of the applicant's registered activities.

(f)  Copies of the applicant's audited financial statements for the current year and, if available, for the immediately preceding 2-year period. In cases where the applicant is a wholly owned subsidiary of another corporation, the parent's consolidated audited financial statements may be submitted to satisfy this requirement. An applicant who is not required to file audited financial statements may satisfy this requirement by filing unaudited financial statements verified under penalty of perjury, as provided by the department by rule.

(g)  An applicant who is not required to file audited financial statements may file copies of the applicant's unconsolidated, unaudited financial statements for the current year and, if available, for the immediately preceding 2-year period.

(h)  If the applicant is a publicly traded company, copies of all filings made by the applicant with the United States Securities and Exchange Commission, or with a similar regulator in a country other than the United States, within the year preceding the date of filing of the application.

(4)  Each application for registration submitted to the department by an applicant that is not a corporation shall also set forth such information as the department reasonably requires, including, but not limited to:

(a)  Evidence that the applicant is registered to do business in this state.

(b)  The name, business and residence addresses, personal financial statement and employment history for the past 5 years for each individual having a controlling ownership interest in the applicant, and each responsible person who will be in charge of the applicant's registered activities.

(c)  The history of material litigation and criminal convictions, pleas of nolo contendere, and cases of adjudication withheld for each individual having a controlling ownership interest in the applicant and each responsible person who will be in charge of the applicant's registered activities.

(d)  Copies of the applicant's audited financial statements for the current year, and, if available, for the preceding 2 years. An applicant who is not required to file audited financial statements may satisfy this requirement by filing unaudited financial statements verified under penalty of perjury, as provided by the department by rule.

(5)  Each applicant shall designate and maintain an agent in this state for service of process.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354; s. 6, ch. 97-59; s. 10, ch. 2000-360.

560.206  Investigation of applicants.--Upon the filing of a properly completed application, accompanied by the nonrefundable application fee and other required documents, the department shall investigate to ascertain whether the qualifications and requirements prescribed by this part have been met. If the department finds that the applicant meets such qualifications and requirements, the department shall issue the applicant a registration to engage in the business of selling payment instruments and transmitting funds in this state. Any registration issued under this part shall remain in effect through April 30 next following its date of issuance unless otherwise specified by the department or earlier surrendered, suspended, or revoked.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.207  Renewal of registration; registration fee.--

(1)  Registration may be renewed for a 24-month period or the remainder of any such period without proration following the date of its expiration, upon the filing with the department of an application and other statements and documents as may reasonably be required of registrants by the department. However, the registrant must remain qualified for such registration under the provisions of this part.

(2)  All registration renewal applications shall be accompanied by a renewal fee not to exceed $1,000, unless such fee is waived by the department. All renewal applications must be filed on or after January 1 of the year in which the existing registration expires, but before March 31. If the renewal application is filed prior to the expiration date of an existing registration, no investigation fee shall be paid in connection with such renewal application. If the renewal application is filed after the expiration date of an existing registration, then, in addition to the $1,000 renewal fee, the renewal application shall be accompanied by a nonrefundable investigation fee pursuant to s. 560.205(2).

(3)  Every registration renewal application shall also include a registration fee of $50 for each location operating within this state or, at the option of the registrant, a total 2-year fee of $5,000 may be paid to register all such locations operating within this state.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.208  Conduct of business.--A registrant may conduct its business at one or more locations within this state through branches or by means of authorized vendors, as designated by the registrant.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.209  Net worth; corporate surety bond; collateral deposit in lieu of bond.--

(1)  Any person engaging in a registered activity shall have a net worth of at least $100,000 computed according to generally accepted accounting principles. Applicants proposing to conduct registered activities at more than one location shall have an additional net worth of $50,000 per location in this state, as applicable, to a maximum of $500,000.

(2)  Before the department may issue a registration, the applicant must provide to the department a corporate surety bond, issued by a bonding company or insurance company authorized to do business in this state.

(a)  The corporate surety bond shall be in such amount as may be determined by department rule, but shall not exceed $250,000. However, the department may consider extraordinary circumstances, such as the registrant's financial condition, the number of locations, and the existing or anticipated volume of outstanding payment instruments or funds transmitted, and require an additional amount above $250,000, up to $500,000.

(b)  The corporate surety bond shall be in a form satisfactory to the department and shall run to the state for the benefit of any claimants in this state against the applicant or its authorized vendors to secure the faithful performance of the obligations of the applicant and its authorized vendors with respect to the receipt, handling, transmission, and payment of funds. The aggregate liability of the corporate surety bond in no event shall exceed the principal sum of the bond. Such claimants against the applicant or its authorized vendors may themselves bring suit directly on the corporate surety bond, or the Department of Legal Affairs may bring suit thereon on behalf of such claimants, in either one action or in successive actions.

(c)  A corporate surety bond filed with the department for purposes of compliance with this section may not be canceled by either the registrant or the corporate surety except upon written notice to the department by registered or certified mail with return receipt requested. A cancellation shall not take effect less than 30 days after receipt by the department of such written notice.

(d)  The corporate surety must, within 10 days after it pays any claim to any claimant, give written notice to the department by registered or certified mail of such payment with details sufficient to identify the claimant and the claim or judgment so paid.

(e)  Whenever the principal sum of such bond is reduced by one or more recoveries or payments, the registrant must furnish a new or additional bond so that the total or aggregate principal sum of such bond equals the sum required by the department. Alternatively, a registrant may furnish an endorsement executed by the corporate surety reinstating the bond to the required principal sum thereof.

(3)  In lieu of such corporate surety bond, or of any portion of the principal thereof required by this section, the applicant may deposit collateral cash, securities, or alternative security devices approved by the department, with any federally insured financial institution.

(a)  Acceptable collateral deposit items in lieu of a bond include cash and interest-bearing stocks and bonds, notes, debentures, or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States, or of this state.

(b)  The collateral deposit must be in an aggregate amount, based upon principal amount or market value, whichever is lower, of not less than the amount of the required corporate surety bond or portion thereof.

(c)  Collateral deposits made under this subsection shall be pledged to the department and held by the insured financial institution to secure the same obligations as would the corporate surety bond, but the depositor is entitled to receive all interest and dividends thereon and may, with the approval of the department, substitute other securities or deposits for those deposited. The principal amount of the deposit shall be released only on written authorization of the department or on the order of a court of competent jurisdiction.

(4)  A registrant must at all times have and maintain the bond or collateral deposit in the amount prescribed by the department. If the department at any time reasonably determines that the bond or elements of the collateral deposit are insecure, deficient in amount, or exhausted in whole or in part, the department may, by written order, require the filing of a new or supplemental bond or the deposit of new or additional collateral deposit items.

(5)  The bond and collateral deposit shall remain in place for 5 years after the registrant ceases registered operations in this state. The department may permit the bond or collateral deposit to be reduced or eliminated prior to that time to the extent that the amount of the registrant's outstanding payment instruments or funds transmitted in this state are reduced. The department may also permit a registrant to substitute a letter of credit or such other form of acceptable security for the bond or collateral deposit at the time the registrant ceases money transmission operations in this state.

(6)  The department may waive or reduce a registrant's net worth or bond or collateral deposit requirement. Such waiver or modification must be requested by the applicant or registrant, and may be granted upon a showing by the applicant or registrant to the satisfaction of the department that:

(a)  The existing net worth, bond, or collateral deposit requirement is sufficiently in excess of the registrant's highest potential level of outstanding payment instruments or money transmissions in this state;

(b)  The direct and indirect cost of meeting the net worth, bond, or collateral deposit requirement will restrict the ability of the money transmitter to effectively serve the needs of its customers and the public; or

(c)  The direct and indirect cost of meeting the net worth, bond, or collateral requirement will not only have a negative impact on the money transmitter but will severely hinder the ability of the money transmitter to participate in and promote the economic progress and welfare of this state or the United States.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.210  Permissible investments.--

(1)  A registrant shall at all times possess permissible investments with an aggregate market value calculated in accordance with generally accepted accounting principles of not less than the aggregate face amount of all funds transmitted and outstanding payment instruments issued or sold by the registrant or an authorized vendor in the United States.

(2)  Acceptable permissible investments include:

(a)  Cash.

(b)  Certificates of deposit or other deposit liabilities of a financial institution, either domestic or foreign.

(c)  Bankers' acceptances eligible for purchase by member banks of the Federal Reserve System.

(d)  An investment bearing a rating of one of the three highest grades as defined by a nationally recognized rating service of such securities.

(e)  Investment securities that are obligations of the United States, its agencies or instrumentalities, or obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state or municipality, or any political subdivision thereof.

(f)  Shares in a money market mutual fund.

(g)  A demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange.

(h)  Receivables that are due to a registrant from the registrant's authorized vendors except those that are more than 30 days past due or are doubtful of collection.

(i)  Any other investment approved by the department.

(3)  Notwithstanding any other provision of this part, the department, with respect to any particular registrant or all registrants, may limit the extent to which any class of permissible investments may be considered a permissible investment, except for cash and certificates of deposit.

(4)  The department may waive the permissible investments requirement if the dollar value of a registrant's outstanding payment instruments and funds transmitted do not exceed the bond or collateral deposit posted by the registrant under s. 560.209.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.211  Records.--

(1)  Each registrant must make, keep, and preserve the following books, accounts, and other records for a period of 3 years:

(a)  A daily record or records of payment instruments sold and funds transmitted.

(b)  A general ledger containing all asset, liability, capital, income, and expense accounts, which general ledger shall be posted at least monthly.

(c)  Settlement sheets received from authorized vendors.

(d)  Financial institution statements and reconciliation records.

(e)  Records of outstanding payment instruments and funds transmitted.

(f)  Records of each payment instrument paid and funds transmission delivered within the 3-year period.

(g)  A list of the names and addresses of all of the registrant's authorized vendors, as well as copies of each authorized vendor contract.

(2)  The records required to be maintained by the code may be maintained by the registrant at any location, provided that the registrant notifies the department in writing of the location of the records in its application or otherwise. The registrant shall make such records available to the department for examination and investigation in this state, as permitted by the code, within 7 days after receipt of a written request.

(3)  Registrants and authorized vendors need not preserve or retain any of the records required by this section or copies thereof for a period longer than 3 years unless a longer period is expressly required by the laws of this state or federal law. A registrant or authorized vendor may destroy any of its records or copies thereof after the expiration of the retention period required by this section.

(4)  The original of any record of a registrant or authorized vendor includes the data or other information comprising a record stored or transmitted in or by means of any electronic, computerized, mechanized, or other information storage or retrieval or transmission system or device which can upon request generate, regenerate, or transmit the precise data or other information comprising the record; and an original also includes the visible data or other information so generated, regenerated, or transmitted if it is legible or can be made legible by enlargement or other process.

(5)  Any person who willfully fails to comply with this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354; s. 11, ch. 2000-360.

560.212  Financial liability.--Each registrant under this part is liable for the payment of all funds transmitted and payment instruments that it sells, in whatever form and whether directly or through an authorized vendor, as the maker, drawer, or principal thereof, regardless of whether such item is negotiable or nonnegotiable.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.213  Payment instrument information.--Each payment instrument sold or issued by a registrant, directly or through an authorized vendor, shall bear the name of the registrant clearly imprinted thereon.

History.--s. 2, ch. 94-238; s. 2, ch. 94-354.

560.301  Short title.

560.302  Definitions.

560.303  Requirement of registration.

560.304  Exceptions to registration.

560.305  Application.

560.306  Standards.

560.307  Fees.

560.308  Registration terms; renewal; renewal fees.

560.309  Rules.

560.310  Records of check cashers and foreign currency exchangers.

560.301  Short title.--This part may be cited as the "Check Cashing and Foreign Currency Exchange Act."

History.--s. 3, ch. 94-238; s. 3, ch. 94-354.

560.302  Definitions.--In addition to the definitions provided in s. 560.103, unless otherwise clearly indicated by the context, for purposes of this part:

(1)  "Cashing" means providing currency for payment instruments, except for travelers checks and foreign-drawn payment instruments.

(2)  "Registrant" means a person authorized by the department pursuant to this part.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354.

560.303  Requirement of registration.--

(1)  No person shall engage in, or in any manner advertise engagement in, the business of cashing payment instruments or the exchanging of foreign currency without first registering under the provisions of this part.

(2)  A person registered pursuant to this part may engage in the activities authorized by this part. A person registered under this part is prohibited from engaging directly in the activities that are authorized under a registration issued pursuant to part II, but such person is not prohibited from engaging in an authorized vendor relationship with a person registered under part II.

(3)  A person exempt from registration pursuant to this part engaging in the business of cashing payment instruments or the exchanging of foreign currency shall not charge fees in excess of those provided in s. 560.309.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354.

560.304  Exceptions to registration.--The provisions of this part do not apply to:

(1)  Authorized vendors of any person registered pursuant to the provisions of the code, acting within the scope of authority conferred by the registrant.

(2)  Persons engaged in the cashing of payment instruments or the exchanging of foreign currency which is incidental to the retail sale of goods or services whose compensation for cashing payment instruments or exchanging foreign currency at each site does not exceed 5 percent of the total gross income from the retail sale of goods or services by such person during its most recently completed fiscal year.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354.

560.305  Application.--Each application for registration shall be in writing and under oath to the department, in such form as the department may prescribe. The application shall include the following:

(1)  The legal name and residence and business addresses of the applicant if the applicant is a natural person, or, if the applicant is a partnership, association, or corporation, the name of every partner, officer, or director thereof.

(2)  The location of the principal office of the applicant.

(3)  The complete address of any other locations at which the applicant proposes to engage in such activities since the provisions of registration apply to each and every operating location of a registrant.

(4)  Such other information as the department may reasonably require with respect to the applicant or any money transmitter-affiliated party of the applicant; however, the department may not require more information than is specified in part II.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354.

560.306  Standards.--

(1)  In order to qualify for registration under this part, an applicant must demonstrate to the department that he or she has such character and general fitness as will command the confidence of the public and warrant the belief that the registered business will be operated lawfully and fairly. The department may investigate each applicant to ascertain whether the qualifications and requirements prescribed by this part have been met. The department's investigation may include a criminal background investigation of all controlling shareholders, principals, officers, directors, members, and responsible persons of a check casher and a foreign currency exchanger and all persons designated by a foreign currency exchanger or check casher as an authorized vendor. Each controlling shareholder, principal, officer, director, member, and responsible person of a check casher or foreign currency exchanger, unless the applicant is a publicly traded corporation, a subsidiary thereof, or a subsidiary of a bank or bank holding company, shall file a complete set of fingerprints taken by an authorized law enforcement officer. Such fingerprints must be submitted to the Department of Law Enforcement or the Federal Bureau of Investigation for state and federal processing. The department may waive by rule the requirement that applicants file a set of fingerprints or the requirement that such fingerprints be processed by the Department of Law Enforcement or the Federal Bureau of Investigation.

(2)  The department may deny registration if it finds that the applicant, or any money transmitter-affiliated party of the applicant, has been convicted of a crime involving moral turpitude in any jurisdiction or of a crime which, if committed in this state, would constitute a crime involving moral turpitude under the laws of this state. For the purposes of this part, a person shall be deemed to have been convicted of a crime if such person has either pleaded guilty to or been found guilty of a charge before a court or federal magistrate, or by the verdict of a jury, irrespective of the pronouncement of sentence or the suspension thereof. The department may take into consideration the fact that such plea of guilty, or such decision, judgment, or verdict, has been set aside, reversed, or otherwise abrogated by lawful judicial process or that the person convicted of the crime received a pardon from the jurisdiction where the conviction was entered or received a certificate pursuant to any provision of law which removes the disability under this part because of such conviction.

(3)  The department may deny an application for registration if the applicant or money transmitter-affiliated party of the applicant is the subject of a pending criminal prosecution or governmental enforcement action, in any jurisdiction, until the conclusion of such criminal prosecution or enforcement action.

(4)  Each registration application and renewal application must specify the location at which the applicant proposes to establish its principal place of business and any other location, including authorized vendors operating in this state. The registrant shall notify the department of any changes to any such locations. Any registrant may satisfy this requirement by providing the department with a list of such locations, including all authorized vendors operating in this state, not less than annually. A registrant may not transact business as a check casher or a foreign currency exchanger except pursuant to the name under which it is registered.

(5)  Each applicant shall designate and maintain an agent in this state for service of process.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354; s. 12, ch. 2000-360.

560.307  Fees.--The application shall be filed together with a nonrefundable investigation fee that shall be established by department rule; however, the investigation fee may not exceed $250. Such investigation fee shall satisfy the fee requirement for the first year of registration or the remaining part thereof.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354.

560.308  Registration terms; renewal; renewal fees.--

(1)  Registration pursuant to this part shall remain effective through the remainder of the second calendar year following its date of issuance unless during such calendar year the registration is surrendered, suspended, or revoked.

(2)  The department shall renew registration upon receipt of a completed renewal form and payment of a nonrefundable renewal fee, as provided by rule, not to exceed $500. The completed renewal form and payment of the renewal fee shall occur on or after June 1 of the year in which the existing registration expires.

(3)  In addition to the renewal fee required by subsection (2), each registrant must register and pay a $50 registration fee for each location, including any authorized vendors, operating within this state or, at the option of the registrant, a total 2-year fee of $5,000 may be paid to register all such operating locations within this state.

(4)  Registration that is not renewed on or before the expiration date of the registration period automatically expires. A renewal application and fee, and an investigation fee pursuant to s. 560.307, must be filed before registration may be reinstated.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354.

560.309  Rules.--

(1)  Before a registrant shall deposit, with any financial institution, a payment instrument that is cashed by a registrant, each such item must be endorsed with the actual name under which such registrant is doing business.

(2)  Registrants must comply with all the laws of this state and any federal laws relating to money laundering, including, as applicable, the provisions of s. 560.123.

(3)  The department may by rule require every check casher to display its registration and post a notice containing its charges for cashing payment instruments.

(4)  Exclusive of the direct costs of verification which shall be established by department rule, no check casher shall:

(a)  Charge fees, except as otherwise provided by this part, in excess of 5 percent of the face amount of the payment instrument, or 6 percent without the provision of identification, or $5, whichever is greater;

(b)  Charge fees in excess of 3 percent of the face amount of the payment instrument, or 4 percent without the provision of identification, or $5, whichever is greater, if such payment instrument is the payment of any kind of state public assistance or federal social security benefit payable to the bearer of such payment instrument; or

(c)  Charge fees for personal checks or money orders in excess of 10 percent of the face amount of those payment instruments, or $5, whichever is greater.

(d)  As used in this subsection, "identification" means, and is limited to, an unexpired and otherwise valid driver license, a state identification card issued by any state of the United States or its territories or the District of Columbia, and showing a photograph and signature, a United States Government Resident Alien Identification Card, a United States Passport, or a United States Military identification card.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354.

560.310  Records of check cashers and foreign currency exchangers.--

(1)  Each registrant must maintain all books, accounts, records, and documents necessary to determine the registrant's compliance with the provisions of the code. Such books, accounts, records, and documents shall be retained for a period of at least 3 years.

(2)  The records required to be maintained by the code may be maintained by the registrant at any location, provided that the registrant notifies the department, in writing, of the location of the records in its application or otherwise. The registrant shall make such records available to the department for examination and investigation in this state, as permitted by the code, within 7 days after receipt of a written request.

(3)  Registrants and authorized vendors need not preserve or retain any of the records required by this section or copies thereof for a period longer than 3 years unless a longer period is expressly required by the laws of this state or any federal law. A registrant or authorized vendor may destroy any of its records or copies thereof after the expiration of the retention period required by this section.

(4)  The original of any record of a registrant or authorized vendor includes the data or other information comprising a record stored or transmitted in or by means of any electronic, computerized, mechanized, or other information storage or retrieval or transmission system or device which can upon request generate, regenerate, or transmit the precise data or other information comprising the record; and an original also includes the visible data or other information so generated, regenerated, or transmitted if it is legible or can be made legible by enlargement or other process.

(5)  Any person who willfully violates this section or fails to comply with any lawful written demand or order of the department made pursuant to this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

History.--s. 3, ch. 94-238; s. 3, ch. 94-354; s. 13, ch. 2000-360.