(a) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers.
(b) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission itself, provided to the payor by the payee, if all the following are true:
1. There exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the payee’s behalf.
2. The payee holds the agent out to the public as accepting payments for goods or services on the payee’s behalf.
3. Payment for the goods and services is treated as received by the payee upon receipt by the agent, so that the payor’s obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee.
(c) A person who acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender and the sender’s designated recipient, if all the following are true:
1. The entity is licensed, or is exempt from licensing requirements, under this chapter.
2. The entity provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction.
3. The entity bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender’s designated recipient.
(d) The United States or a department, agency, or instrumentality thereof, or its agent.
(e) Money transmission by the U.S. postal service or an agent of the U.S. postal service.
(f) A state, county, city, or any other governmental agency or governmental subdivision or instrumentality of a state, or its agent.
(g) A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 USC 3102, corporation organized pursuant to the Bank Service Corporation Act, 12 USC 1861 to 1867, or corporation organized under the Edge Act, 12 USC 611 to 633.
(h) Electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or instrumentality thereof.
(i) A board of trade designated as a contract market under the federal Commodity Exchange Act, 7 USC 1 to 25, or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board.
(j) A registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant.
(k) A person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer.
(L) An individual employed by a licensee, authorized delegate, or any person exempted from the licensing requirements of this chapter when acting within the scope of employment and under the supervision of the licensee, authorized delegate, or exempted person as an employee and not as an independent contractor.
(m) A person expressly appointed as a 3rd-party service provider to or agent of an entity exempt under par. (g), solely to the extent that all of the following are true:
1. The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform.
2. The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to a purchaser or holder of the outstanding money transmission obligations upon receipt of the purchaser’s or holder’s money or monetary value by the service provider or agent.
(n) A person exempted by written determination of the division, if the division finds the exemption to be in the public interest and that the regulation of the person is not necessary for the purposes of this chapter.
(o) 1. A person that delivers wages or salaries on behalf of employers to employees or facilitates the payment of payroll taxes to state and federal agencies, makes payments relating to employee benefit plans, makes distributions of other authorized deductions from employees’ wages or salaries, or transmits other funds on behalf of an employer in connection with transactions related to employees.
2. Notwithstanding subd. 1., a person described in subd. 1. that offers money transmission services or provides stored value cards directly to individual consumers shall comply with this chapter to the extent of that activity.
(2) The division may require that any person claiming to be exempt from licensing requirements under this chapter provide information and documentation to the division demonstrating that the person qualifies for any claimed exemption.
217.04 Participation in the nationwide multistate licensing system and registry; networked supervision; confidentiality. (1) Participation in the nationwide multistate licensing system and registry. The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to applicants and licensees under this chapter. An applicant or licensee under this chapter shall register with, and maintain a valid unique identifier issued by, the nationwide multistate licensing system and registry.
(2) Networked supervision. To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the division may do any of the following:
(a) Participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank Supervisors, Money Transmitter Regulators Association, and affiliates and successors thereof for all licensees that hold licenses in this state and other states.
(b) Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations, including organizations the membership of which is made up of state or federal governmental agencies, to standardize methods or procedures or share resources, records or related information obtained under this chapter.
(c) Enter into agreements or relationships with the nationwide multistate licensing system and registry, or other entities designated by the nationwide multistate licensing system and registry, to collect and maintain records, coordinate multistate licensing processes and supervision processes, process fees, and facilitate communication with licensees or other persons subject to this chapter.
(d) Utilize nationwide multistate licensing system and registry forms, processes, and functionalities in accordance with this chapter.
(e) Waive or modify any requirement, and establish new requirements by rule or order, as reasonably necessary to participate in the nationwide multistate licensing system and registry.
(f) Accept a licensing, examination, or investigation report made by another state or federal government agency or official, or a report prepared by an independent accounting firm.
(g) Accept the investigation results or control determination of another state, if the other state has sufficient staffing and expertise and meets minimum standards.
(h) Conduct examinations in conjunction with examinations conducted by representatives of other state agencies or agencies of another state or of the federal government.
(i) Utilize multistate record production standards and examination procedures when such standards and procedures will reasonably achieve the purposes of this chapter.
(j) Participate in nationwide protocols for licensing cooperation and coordination among state regulators if these protocols are consistent with this chapter.
(k) Implement this chapter in a manner that facilitates uniformity with respect to licensing, supervision, reporting, and regulation of licensees that are licensed in multiple jurisdictions.
(3) Confidentiality. (a) Section 220.06 applies to this chapter.
(b) The division may not disclose information received under s. 217.05 (3) (b) 2. to any person except as follows:
1. The division may disclose the applicant’s social security number or federal employer identification number to the department of revenue for the sole purpose of requesting certifications under s. 73.0301 and to the department of workforce development for the sole purpose of requesting certifications under s. 108.227.
2. The division may disclose the applicant’s social security number to the department of children and families in accordance with a memorandum of understanding under s. 49.857.
3. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.
217.05 License requirements. (1) License required. A person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless the person is licensed under this chapter. This subsection does not apply to an authorized delegate of a person licensed under this chapter acting within the scope of authority conferred by a written contract with the licensee, or to a person who is exempt pursuant to s. 217.03 and does not engage in money transmission outside the scope of the exemption.
(2) License not transferable. A license issued under this section is not transferable or assignable.
(3) Application for license. (a) An applicant for a license shall apply in a form and manner prescribed by the division and submit a $1,000 nonrefundable application fee.
(b) The applicant shall provide all of the following information to the division:
1. The legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business.
2. The applicant’s federal employer identification number or social security number, as applicable. If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for or applying to renew a license, shall submit a statement made or subscribed under oath or affirmation to the division that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families.
3. A list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the 10-year period next preceding the submission of the application.
4. A description of any money transmission previously provided by the applicant and the money transmission that the applicant seeks to provide in this state.
5. A list of the applicant’s proposed authorized delegates and the locations in this state where the applicant and its authorized delegates propose to engage in money transmission.
6. A list of other states in which the applicant is licensed to engage in money transmission and any license revocations, suspensions, or other disciplinary action taken against the applicant in another state.
7. Information concerning any bankruptcy or receivership proceedings affecting the applicant or a person in control of the applicant.
8. A sample form of contract for authorized delegates, if applicable.
9. A sample form of each payment instrument or stored value, as applicable.
10. The name and address of any federally insured depository financial institution through which the applicant plans to conduct money transmission.
11. A copy of audited financial statements of the applicant for the most recent fiscal year and for the 2-year period next preceding the submission of the application or, if acceptable to the division, certified unaudited financial statements for the most recent fiscal year or another period acceptable to the division.
12. A certified copy of unaudited financial statements of the applicant for the most recent fiscal quarter.
13. A copy of the surety bond or other form of security required by s. 217.10 (2).
14. Any other information the division or the nationwide multistate licensing system and registry reasonably requires with respect to the applicant.
(c) If the applicant is a corporation, limited liability company, partnership, or other legal entity, the applicant shall provide all of the following information to the division, in addition to the information required under par. (b):
1. The date of the applicant’s incorporation or formation and state or country of incorporation or formation.
2. A certificate of good standing from the state or country in which the applicant is incorporated or formed, if applicable.
3. A brief description of the structure or organization of the applicant, including each parent or subsidiary of the applicant and whether each parent or subsidiary is publicly traded.
4. The legal name, any fictitious or trade name, all business and residential addresses, and the employment, as applicable, in the 10-year period next preceding the submission of the application, of each key individual and person in control of the applicant.
5. A list of any criminal convictions and material litigation in which a person in control of the applicant that is not an individual has been involved in the 10-year period next preceding the submission of the application.
6. If the applicant is a publicly traded corporation, a copy of the most recent report filed with the U.S. Securities and Exchange Commission under section 13 of the Securities Exchange Act of 1934, 15 USC 78m.
7. If the applicant is a wholly owned subsidiary of a publicly traded corporation, one of the following as applicable:
a. If the parent corporation is publicly traded in the United States, a copy of the parent corporation’s audited financial statements for the most recent fiscal year or a copy of the parent corporation’s most recent report filed under section 13 of the Securities Exchange Act of 1934, 15 USC 78m.
b. If the parent corporation is publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation’s domicile outside the United States.
8. The name and address of the applicant’s registered agent in this state.
(d) The division may waive one or more requirements of par. (b) or (c) or permit an applicant to submit other information in lieu of the required information.
(4) Information requirements for certain individuals. (a) Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and each key individual shall provide all of the following items to the division through the nationwide multistate licensing system and registry as provided in s. 224.35 (2):
1. The individual’s fingerprints for submission to the federal bureau of investigation and the division for purposes of a national criminal history background check unless the person currently resides outside of the United States and has resided outside the United States for the last 10 years.
2. Personal history and experience in a form and manner prescribed by the division, to include all of the following:
a. An independent credit report from a consumer reporting agency. This requirement shall be waived if the individual does not have a social security number.
b. Information related to any criminal convictions or pending charges.
c. Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.
3. Any other information the division or the nationwide multistate licensing system and registry reasonably requires with respect to the individual.
(b) If the individual has resided outside the United States at any time in the last 10 years, the individual shall also provide an investigative background report prepared by an independent search firm that meets all of the following requirements:
1. The search firm has sufficient knowledge and resources and employs accepted and reasonable methodologies in conducting its research for the background report.
2. The search firm is not affiliated with, and does not have an interest with, the individual it is researching.
3. The background report is written in the English language and contains, at a minimum, all of the following information:
a. If available in the individual’s current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked.
b. Criminal records information for the past 10 years, including felonies, misdemeanors, or similar convictions for violations of law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked.
c. Employment history.
d. Media history, including an electronic search of national and local publications, wire services, and business applications.
e. Financial services-related regulatory history, including money transmission, securities, banking, insurance, and mortgage-related industries.
