Can I collect bank account information from participants in California? What are the requirements?

Based on the additional context documents provided, here are the requirements for collecting bank account information from participants in California:

Requirements for Bank Secrecy Act Compliance

If you are collecting bank account information as part of a Money Services Business, you must comply with the Bank Secrecy Act (BSA) and the USA Patriot Act. According to 10 CACR Section 80.4118.11, you must provide a copy of your Money Services Business registration with the Financial Crimes Enforcement Network, a risk assessment, a BSA/USA Patriot Act compliance manual, and training materials and documentation of training for the board, managers, and members. You must also identify any banks and bank services used that may present a BSA risk and describe how you will manage those risks. Additionally, if you are a corporation, you must provide a copy of the resolution of the board designating the BSA compliance officer. If you are a limited liability company, you must provide a copy of the designation of the BSA compliance officer in accordance with the operating agreement. Finally, you must provide a copy of the latest independent review of your BSA/USA Patriot Act compliance program and the response to the review by the applicant.

Requirements for Advance Deposit Wagering Approval

If you are collecting bank account information as part of an Advance Deposit Wagering operation, you must be Board-approved and comply with Business and Professions Code section 19460 et. seq. According to 4 CACR Section 2072, you must complete an Application For Approval to Conduct Advance Deposit Wagering, CHRB-133 (Rev. 02/19), which must be filed not later than 90 days in advance of the scheduled start date of operation. You must also provide a bond from a surety company admitted in the state of California or other form of financial security in the amount of $500,000. Additionally, you must establish security access policies and safeguards pursuant to Business and Professions Code section 19604, provide financial information that demonstrates the financial resources to operate Advance Deposit Wagering, and provide a detailed budget that shows anticipated revenue, expenditures, and cash flows by month projected for the term of the approval.

California Financial Information Privacy Act

If you are collecting bank account information, you must comply with the California Financial Information Privacy Act (CFIPA). According to Fin Code CACL 4056, a financial institution may release nonpublic personal information under certain circumstances, including when the nonpublic personal information is necessary to effect, administer, or enforce a transaction requested or authorized by the consumer, or in connection with servicing or processing a financial product or service requested or authorized by the consumer, or in connection with maintaining or servicing the consumer’s account with the financial institution. Additionally, the nonpublic personal information may be released with the consent of or at the direction of the consumer, or to protect the confidentiality or security of the financial institution’s records pertaining to the consumer, the service or product, or the transaction therein.

Conclusion

Based on the context documents provided, it appears that collecting bank account information from participants in California may be subject to certain requirements, including compliance with the Bank Secrecy Act and the USA Patriot Act, Advance Deposit Wagering approval, and the California Financial Information Privacy Act. It is important to review the specific requirements and regulations applicable to your situation to ensure compliance.

Jurisdiction

California

• Privacy