ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	House: COM DP 10-0-0-0

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HB 2508: money transmitters; exemptions; authorized delegates

Sponsor:  Representative Bolick, LD 20

Caucus & COW

Overview

Exempts a person who provides money transmitter services for certain financial institutions from money transmitter laws, if certain conditions are met.

History

A money transmitter is a person who is located or doing business in this state, including a check casher and a foreign money exchanger, who: 1) sells or issues payment instruments; 2) engages in the business of receiving money for transmission of or transmitting money; 3) engages in the business of exchanging payment instruments or money into any form of money or payment instruments; 4) engages in the business of receiving money for obligors for the purpose of billing paying that obligor's bills, invoices or accounts; or 5) meets the federal definition of a bank, financial agency or financial institution (A.R.S. § 6-1201).

Provisions

1. Exempts, from money transmitter licensure and regulations, a person who provides money transmitter services for a bank, financial institution holding company, credit union, savings and loan association or savings bank and if:

a) The agency relationship with the person is established through a written agreement; and

b) The specified financial institution, which the person is providing services for, remains responsible for providing the money transmitter services to its customers. (Sec. 1)

2. Clarifies the exempted person is subjected to money laundering laws. (Sec. 1)

3. Removes the requirement that contract between a money transmitter licensee and an authorized delegate contain a current copy of money transmitter laws. (Sec. 2)

4. Makes a conforming change. (Sec. 2)

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8.                   HB 2508

9. Initials PRB           Page 0 Caucus & COW

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