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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
money transmitters; exemptions; authorized delegates
Purpose
Exempts a person who provides money transmitter services for certain financial institutions from money transmitter licensure and regulation, if certain conditions are met.
Background
A person must obtain a money transmitter license or be an authorized delegate of a licensee to provide money transmitter services. Money transmitter services include: 1) selling or issuing payment instruments; 2) engaging in the business of receiving money for transmission or transmitting money; 3) engaging in the business of exchanging payment instruments or money into any form of money or payment instrument; or 4) engaging in the business of receiving money for an obligor to pay that obligor's bills, invoices or accounts (A.R.S. §§ 6-1201 and 6-1202).
A licensed money transmitter may conduct money transmitter services at one or more locations in Arizona through an authorized delegate. Each contract between a licensee and an authorized delegate must require the authorized delegate to operate in full compliance with the law and must contain a current copy of statutes relating to money transmitters (A.R.S. § 6-1208).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Exempts, from money transmitter licensure and regulation, a person who, in their regular course of business, provides money transmitter services for a bank, financial institution holding company, credit union, savings and loan association or savings bank, if:
a) the agency relationship is established through a written agreement; and
b) the bank, financial institution holding company, credit union, savings and loan association or savings bank remains responsible for providing money transmitter services to its customers.
2. Removes the requirement that a contract between a licensee and an authorized delegate contain a current copy of the statutes relating to money transmitters.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
House Action
RA 02/17/20 DP 6-0-1-0
3rd Read 02/27/20 60-0-0
Prepared by Senate Research
March 9, 2020
MG/AJS/gs