Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

To collect bank account information from participants in Louisiana, you must comply with the requirements set forth in Louisiana Revised Statutes (LARS) Chapter 14-B. Foreign banks operating in Louisiana must comply with LARS § 6.551.22, which requires foreign banks to make written reports to the commissioner of the Office of Financial Institutions showing the amount of their assets and liabilities and containing such other matters as the commissioner shall prescribe. Additionally, foreign banks must file all periodic reports required by any federal agency with the Office of Financial Institutions [1.3].

Foreign banks may establish a representative office in Louisiana with the authorization of the commissioner of financial institutions, subject to approval from the Federal Reserve Board, and subject to the provisions of LARS Chapter 14-B and applicable federal law. A representative office may engage in certain activities in Louisiana, including promoting and assisting the deposit-taking, lending, or other financial or banking activities of a foreign bank, serving as liaison between a foreign bank and its existing or potential customers, soliciting business for the foreign bank and its subsidiaries and affiliates, providing information to foreign bank customers concerning their accounts, answering questions, and receiving applications for extensions of credit and other banking services, and transmitting documents on behalf of customers. However, a representative office may not receive deposits, pay checks or other instruments, or make loans [1.2].

It is important to note that collecting bank account information from participants in Louisiana may also be subject to other state and federal laws and regulations. Therefore, it is recommended that you consult with a legal professional to ensure compliance with all applicable laws and regulations.

In addition, if you are transmitting money or selling checks, you must comply with LARS § 6.1037, which requires each application for license to transmit money or sell checks to be accompanied by an investigation fee, financial statements certified to as correct by an owner, principal, officer, or director of the applicant for the preceding three calendar or fiscal years and the year in which the application is submitted, and a surety bond by a bonding company or insurance company authorized to do business in Louisiana in the minimum amount of twenty-five thousand dollars, or a higher amount deemed appropriate by the commissioner, based on the applicant’s business plan, for the initial year of licensure. The bond shall be in a form satisfactory to the commissioner and shall run to the office of financial institutions, for the use and benefit of the office of financial institutions and creditors of the licensee or agent for any liability incurred on any money transferred or check issued by the licensee or agent. Persons who have claims against the licensee or his agents may bring suit directly on the bond. The attorney general may bring suit on the bond on behalf of claimants, either in one action or successive actions. The surety shall have the right to cancel the bond upon giving thirty days notice, in writing, to the commissioner. The surety on the bond shall be relieved of liability for any breach of conditions occurring after the cancellation [2.1].

If you are interested in establishing a subsidiary bank in Louisiana, you must comply with LARS § 6.551.3, which allows foreign banks to establish a subsidiary bank in Louisiana subject to the provisions of LARS Chapter 14-B and applicable federal law. All deposits in the subsidiary bank shall be insured by the Federal Deposit Insurance Corporation. The subsidiary bank of a foreign bank shall have the same banking powers, subject to the same restrictions, limitations, reporting, and other requirements as domestic banks and may engage in the same banking activities as other domestic banks [1.6].

It is important to note that the Louisiana Lottery Corporation is uniquely positioned to participate in the sports wagering industry based upon its business model, infrastructure, and current relationship with retail establishments. The Louisiana Lottery Corporation through an operator shall operate and administer a sports book which shall be a separate and distinct responsibility and operation from lottery gaming. Any sports wagering offered to consumers in this state pursuant to this Subtitle shall exclusively be through electronic means including a website, mobile application, or sports wagering mechanism [4.1].

Therefore, to collect bank account information from participants in Louisiana, you must comply with the requirements set forth in LARS Chapter 14-B, and if you are transmitting money or selling checks, you must also comply with LARS § 6.1037. If you are interested in establishing a subsidiary bank in Louisiana, you must comply with LARS § 6.551.3.

Source(s):
Jurisdiction

Louisiana