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Can you summarize KYRS Chapter 286.11?
KENTUCKY FINANCIAL SERVICES CODE > Money Transmitters
Short Summary
The Kentucky Money Transmitters Act of 2006, part of the Kentucky Financial Services Code, governs the activities of money transmitters in the state of Kentucky. It applies to individuals or entities engaged in the business of receiving money or monetary value to transmit, deliver, or instruct to be transmitted or delivered, money or monetary value to another location inside or outside the United States. The document provides definitions for various terms used in the context of money transmission and establishes penalties for unsafe or unsound practices. It also outlines the exemptions to which this regulation does not apply. The document further specifies the application requirements for obtaining a license as a money transmitter, including the necessary information and documentation. It sets the net worth requirement for licensees and outlines the permissible investments for money transmitters. The document also covers the renewal of licenses, reporting requirements, change of control procedures, and the commissioner’s powers to conduct examinations and investigations. It emphasizes the confidentiality of data submitted to the commissioner and the maintenance of records by licensees. The document provides information on the filing and maintenance of reports required by federal and state laws governing money laundering. It also addresses authorized agent contracts, the conduct of authorized agents, and the suspension or revocation of licenses and agent designations. The document grants the commissioner the authority to issue cease and desist orders, petition for injunctions, and impose civil penalties for violations of the Kentucky Financial Services Code. It outlines the procedures for administrative hearings and appeals. Overall, the document aims to ensure the safe and sound operation of money transmission, prevent criminal activities, promote confidence in the state’s financial system, and protect the public interest.
Whom does it apply to?
Individuals or entities engaged in the business of receiving money or monetary value to transmit, deliver, or instruct to be transmitted or delivered, money or monetary value to another location inside or outside the United States.
What does it govern?
The Kentucky Money Transmitters Act of 2006, part of the Kentucky Financial Services Code, governs the activities of money transmitters in the state of Kentucky.
What are exemptions?
The exemptions include the United States and its departments, the United States Post Office, states and their agencies, financial institutions and their subsidiaries, service providers acting on behalf of exempt entities, service providers receiving money on behalf of entities selling goods or services, and the provision of electronic transfer of government benefits by contractors for federal, state, or county governmental agencies.
What are the Penalties?
No specific penalties for non-compliance are mentioned in the document.
Jurisdiction
Kentucky