The Florida Senate

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

(1)(a)  The office 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 office 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 office 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 office may administer oaths and examine a money transmitter or any of its affiliated parties concerning their operations and business activities and affairs. The office 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 office may also make a joint or concurrent examination with any state or federal regulatory agency. The office 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 office 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 office or the office'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 office 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 office 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.

(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 office 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 office 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 commission may, by rule, require each money transmitter or authorized vendor to submit quarterly reports to the office. The commission 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 commission by rule requires for that type of money transmitter.

(c)  The office 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 office 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 office 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; s. 4, ch. 2001-119; s. 701, ch. 2003-261.