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

Based on the documents provided, it appears that you may collect bank account information from participants in Rhode Island, but there are certain requirements that must be met.

Requirements for Collecting Bank Account Information in Rhode Island

  1. Compliance with Rhode Island Administrative Procedures Act: Any rules and regulations related to collecting bank account information must be prepared in accordance with the requirements of R.I. Gen Laws §§ 42-35-1 et seq. of the Rhode Island Administrative Procedures Act [1.1].
  2. Reporting Requirements: Banking institutions or credit unions are required to file proper returns/reports twice each year. On or before January 15 following the close of the taxable year, banking institutions or credit unions shall file a report containing the information the Tax Administrator shall prescribe. No payment is required with the January 15 report. The June 15 filing is not an estimate and the amount reflected on it and those shown on the report filed on January 15 should be identical. In the case of mathematical and/or other errors and/or omissions which are discovered after the filing of the January report and prior to the filing of the June return, full and complete disclosure of the differences must be submitted with the June return and payment [1.2].
  3. Exemptions from Licensing: No license to cash checks shall be required of any regulated institution, bank, or credit union organized under the laws of the United States, or subject to written notice with a designated Rhode Island agent for service of process in the form prescribed by the director, or the director’s designee, of any other state within the United States if the laws of the other state in which such bank or credit union is organized authorizes under conditions not substantially more restrictive than those imposed by the laws of this state, as determined by the director, or the director’s designee, a financial institution or credit union to engage in the business of cashing checks in the other state [3.1].
  4. Public Notice of Application: Upon the filing of any application in due form, accompanied by the required fee and documents, notice thereof shall be published in a newspaper of general circulation in this state. Each notice shall contain: (1) The name of the applicant; (2) The location of the proposed site; and (3) A statement that any comment or objection by anyone in relation to the application should be submitted in writing to the director, or the director’s designee, for consideration within ten (10) business days of the date of publication [3.2].

Conclusion

Based on the documents provided, it appears that you may collect bank account information from participants in Rhode Island, but you must comply with the Rhode Island Administrative Procedures Act, file proper returns/reports, and follow the public notice of application requirements. Additionally, certain exemptions from licensing may apply. It is recommended that you consult with a legal professional to ensure that you are in compliance with all applicable laws and regulations.

Source(s):
Jurisdiction

Rhode Island