| 1 | A bill to be entitled |
| 2 | An act relating to financial transactions; amending s. |
| 3 | 560.103, F.S.; revising a definition of unsafe or unsound |
| 4 | practice to include failures to adhere to certain federal |
| 5 | rules; amending s. 560.109, F.S.; authorizing the office |
| 6 | to conduct examinations to determine the existence of |
| 7 | violations of certain provisions of law; amending s. |
| 8 | 560.114, F.S.; providing for disciplinary action for |
| 9 | failure to maintain certain records required by rules |
| 10 | adopted under federal law; amending s. 560.129, F.S.; |
| 11 | clarifying certain provisions relating to confidentiality |
| 12 | of certain records and documents of the office; providing |
| 13 | an effective date. |
| 14 |
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| 15 | Be It Enacted by the Legislature of the State of Florida: |
| 16 |
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| 17 | Section 1. Subsection (21) of section 560.103, Florida |
| 18 | Statutes, is amended to read: |
| 19 | 560.103 Definitions.--As used in the code, unless the |
| 20 | context otherwise requires: |
| 21 | (21) "Unsafe and or unsound practice" means: |
| 22 | (a) Any practice or conduct found by the office to be |
| 23 | contrary to generally accepted standards applicable to the |
| 24 | specific money transmitter, or a violation of any prior order of |
| 25 | an appropriate regulatory agency, which practice, conduct, or |
| 26 | violation creates the likelihood of material loss, insolvency, |
| 27 | or dissipation of assets of the money transmitter or otherwise |
| 28 | materially prejudices the interests of its customers; or |
| 29 | (b) Failure to adhere to the provisions of 31 CFR ss. |
| 30 | 103.11, 103.20, 103.22, 103.27, 103.28, 103.29, 103.33, 103.37, |
| 31 | 103.41, and 103.125 as they existed on March 31, 2004. |
| 32 |
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| 33 | In making this determination, the office must consider the size |
| 34 | and condition of the money transmitter, the magnitude of the |
| 35 | loss, the gravity of the violation, and the prior conduct of the |
| 36 | person or business involved. |
| 37 | Section 2. Subsection (1) of section 560.109, Florida |
| 38 | Statutes, is amended to read: |
| 39 | 560.109 Investigations, subpoenas, hearings, and |
| 40 | witnesses.-- |
| 41 | (1) The office may make investigations, or conduct |
| 42 | examinations as prescribed in s. 560.118, within or outside this |
| 43 | state, which it deems necessary in order to determine whether a |
| 44 | person has violated any provision of the code, or the rules |
| 45 | adopted by the commission pursuant to the code, and 31 CFR ss. |
| 46 | 103.11, 103.20, 103.22, 103.27, 103.28, 103.29, 103.33, 103.37, |
| 47 | 103.41, and 103.125 as they existed on March 31, 2004. |
| 48 | Section 3. Paragraph (e) of subsection (1) of section |
| 49 | 560.114, Florida Statutes, is amended to read: |
| 50 | 560.114 Disciplinary actions.-- |
| 51 | (1) The following actions by a money transmitter or money |
| 52 | transmitter-affiliated party are violations of the code and |
| 53 | constitute grounds for the issuance of a cease and desist order, |
| 54 | the issuance of a removal order, the denial of a registration |
| 55 | application or the suspension or revocation of any registration |
| 56 | previously issued pursuant to the code, or the taking of any |
| 57 | other action within the authority of the office pursuant to the |
| 58 | code: |
| 59 | (e) Failure to maintain, preserve, and keep available for |
| 60 | examination all books, accounts, or other documents required by |
| 61 | the code, by any rule or order adopted pursuant to the code, and |
| 62 | by 31 CFR ss. 103.11, 103.20, 103.22, 103.27, 103.28, 103.29, |
| 63 | 103.33, 103.37, 103.41, and 103.125 as they existed on March 31, |
| 64 | 2004, or by any agreement entered into with the office. |
| 65 | Section 4. Paragraph (a) of subsection (2) of section |
| 66 | 560.129, Florida Statutes, is amended to read: |
| 67 | 560.129 Confidentiality.-- |
| 68 | (2) This section does not prevent or restrict: |
| 69 | (a) Furnishing records or information to any appropriate |
| 70 | regulatory agency or law enforcement agency if such agency |
| 71 | adheres to the confidentiality provisions of the code; |
| 72 | Section 5. This act shall take effect upon becoming a law. |