(4) Reports of certain events. (a) A licensee shall file a report with the division within one business day after the licensee has reason to know of the occurrence of any of the following events:

1. The filing of a petition by or against the licensee under the U.S. Bankruptcy Code, 11 USC 101 to 110, for bankruptcy or reorganization.

2. The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors.

3. The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed.

(b) A licensee shall file a report with the division within 3 business days after the licensee has reason to know that the licensee or a key individual, person in control, or authorized delegate of the licensee has been charged with or convicted of a felony.

(5) Bank Secrecy Act reports. A licensee and an authorized delegate shall comply with all federal currency reporting, record keeping, and suspicious activity reporting requirements as set forth in the Bank Secrecy Act and other federal and state laws pertaining to money laundering.

(6) Records. (a) A licensee shall maintain all of the following records for at least 3 years:

1. A record of each outstanding money transmission obligation sold.

2. A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts.

3. Bank statements and bank reconciliation records.

4. Records of outstanding money transmission obligations.

5. Records of each money transmission obligation paid within the 3-year period.

6. A list of the last-known names and addresses of all the licensee’s authorized delegates.

7. Any other records the division requires to be maintained by order or rule.

(b) Upon written request of the division to inspect any record specified in par. (a), the licensee shall promptly make the record available to the division. A licensee shall maintain the records specified in par. (a) in a location and manner that ensures the licensee can make the records available to the division no later than 7 business days after the division’s written request.

217.08 Authorized delegates. (1) Before a licensee is authorized to conduct business through an authorized delegate or allows a person to act as the licensee’s authorized delegate, the licensee shall do all of the following:

(a) Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee’s authorized delegates comply with applicable state and federal law.

(b) Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.

1. Appoints the authorized delegate for the licensee with the authority to conduct money transmission on behalf of the licensee.

2. Sets forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties.

3. Requires the authorized delegate to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including relevant provisions of the Bank Secrecy Act and federal and state laws pertaining to money laundering.

4. Requires the authorized delegate to remit and handle money and monetary value in accordance with the terms of the agreement.

5. Imposes a trust for the benefit of the licensee on money and monetary value net of fees received for money transmission.

6. Requires the authorized delegate to prepare and maintain records as required by this chapter and applicable rules.

7. States the authorized delegate’s consent to examination or investigation by the division.

8. States that the licensee is subject to regulation by the division, and that, as part of that regulation, the division may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation.

9. Acknowledges the authorized delegate’s receipt of the written policies and procedures required under par. (a).