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Can you summarize HIRS Chapter 489D?
TRADE REGULATION AND PRACTICE > Money Transmitters Act
Short Summary
The Money Transmitters Act under the Hawaii Revised Statutes governs the business of transmitting money in the State of Hawaii. It establishes a licensure system to ensure the safe and sound operation of money transmission businesses, prevent their use for criminal purposes, promote confidence in the State’s financial system, and protect the public interest. The act applies to individuals or entities engaged in the business of money transmission, even if they have no physical presence in the State. Certain entities, such as the United States, United States Postal Service, and the State or its political subdivisions, are exempt from the act. Authorized delegates of licensees are also exempt from obtaining a license. The act sets requirements for licensees, including maintaining a minimum net worth, being in good standing in the state of incorporation, and registering with the Nationwide Multistate Licensing System (NMLS). Licensees are also required to provide a bond or other security device to ensure the fulfillment of outstanding payment obligations. Permissible investments must be held by licensees to cover outstanding payment obligations. The act grants the commissioner the authority to enter into agreements with NMLS, suspend or revoke licenses, and conduct examinations and investigations. It also establishes reporting requirements, obligations for authorized delegates, and procedures for license application, change of control, and voluntary surrender of a license. The act does not specify the penalties for non-compliance or violation of its provisions.
Whom does it apply to?
The Money Transmitters Act applies to individuals or entities engaged in the business of money transmission in the State of Hawaii.
What does it govern?
The Money Transmitters Act governs the business of transmitting money and applies to persons engaged in such activities.
What are exemptions?
The Money Transmitters Act does not apply to the United States or any department, agency, or instrumentality thereof; the United States Postal Service; the State or any political subdivisions thereof; and the electronic transfer of government benefits for any federal, state, or county governmental agency as defined in Consumer Financial Protection Bureau Regulation E, by a contractor for, and on behalf of the United States or any department, agency, or instrumentality thereof, or any state or any political subdivisions thereof. Authorized delegates of a licensee acting within the scope of authority conferred by a written contract under section 489D-21 are also exempt from obtaining a license.
What are the Penalties?
The document does not specify the penalties for non-compliance or violation of the act.
Jurisdiction
Hawaii