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Can you summarize RIGL Title 19, Chapter 14.3?
Financial institutions > Currency Transmissions
Short Summary
The provided legal document content pertains to currency transmissions in the State of Rhode Island. It governs individuals or entities engaged in a foreign exchange business or the business of forwarding foreign drafts or money. Duly incorporated financial institutions or credit unions are exempt from certain provisions. The document outlines the rights of individuals who have delivered or deposited money or credit to be sent to a foreign correspondent. These individuals have the right to take action on a bond filed according to the provisions of this chapter if they have acquired any judgment, debt, claim, or demand related to the transaction against the principal named in the bond. The action can be based on defalcation, embezzlement, negligence, breach of contract, or violation of any duty required under this title. The person seeking action on the bond is entitled to all damages sustained and can request a certified copy of the bond from the director or their designee. The action can be brought in the name of the obligee named in the bond for their use and benefit, and can be pursued until final judgment and execution. It is important to note that the action must be initiated within six years after the cause of action accrues. The document also outlines the obligations of persons to whom any money, draft, or credit is delivered to be forwarded to a foreign correspondent. These persons are required to forward the credit, accompanied by draft credits or any necessary documents, immediately after the receipt, sale, deposit, or other transaction by which the money, draft, or credit is delivered to them. They must also provide a receipt showing the current rate of exchange of the foreign currency and the amount expressed in the denomination of the foreign currency. The document further establishes the liability of licensees for the payment of all checks or electronic money transfers sold by them, whether directly or through an agent. Licensees must clearly imprint their name on every check or electronic money transfer sold. Additionally, the document allows applicants for surety bonds to deposit United States government/agency obligations or state obligations instead of providing the required surety bond. The deposited securities must have a total value equal to or greater than the required surety bond, and the licensee will receive all interest and dividends from the securities. The document also requires individuals or entities engaged in a foreign exchange business or the business of forwarding foreign drafts or money to maintain a record of each transaction, including specific details. Failure to comply with this requirement may result in penalties, although the specific penalties are not mentioned. The document provides exemptions from licensing requirements for currency transmission businesses, including regulated institutions, banks, credit unions, and various other entities and individuals engaged in specific activities. The document also governs prohibited acts and practices related to currency transmission, including failure to remit money received for transmission, failure to notify the director of dishonored transactions, engaging in currency transmission under unauthorized names, non-compliance with certain acts and regulations, failure to safeguard identifying information, and engaging in unfair, deceptive, or fraudulent practices. The document specifies that specific penalties for non-compliance are not mentioned. Furthermore, the document establishes requirements for licensees that have control of virtual currency for one or more persons. Licensees must maintain an amount of each type of virtual currency sufficient to satisfy the aggregate entitlements of the persons to the type of virtual currency. If a licensee violates this requirement, the property interests of the persons in the virtual currency are pro rata property interests in the type of virtual currency to which the persons are entitled, without regard to the time the persons became entitled to the virtual currency or the licensee obtained control of the virtual currency. The virtual currency held by the licensee is not the property of the licensee and is not subject to the claims of creditors of the licensee. The document also governs the required disclosures for virtual currency. Licensees engaging in virtual currency business activities must provide residents with specific disclosures before establishing a relationship and must provide confirmation containing relevant transaction details at the conclusion of a virtual currency transaction. Virtual currency is not legal tender. The document further governs the cooperation, coordination, joint examination, consultation, and data-sharing authority of the department and other regulatory agencies. The department is authorized to cooperate, coordinate, jointly examine, consult, and share records and other information with regulatory agencies of other states, self-regulatory organizations, federal or state regulators of banking or non-depository providers, or regulators of jurisdictions outside the United States. The department is also required to establish or participate in a central depository for filings, cooperate in developing and implementing uniform forms, formulate joint rules and guidance, and develop common systems and procedures. The department must consider maximizing effectiveness and uniformity of regulation while minimizing burdens on licensees and registrants. Finally, the document governs currency transmissions and provides definitions for various terms related to virtual currency and currency transmission. It applies to persons engaged in currency transmission business activity. Specific penalties for non-compliance or violation of the provisions are not specified in this chapter.
Whom does it apply to?
Individuals or entities engaged in a foreign exchange business or the business of forwarding foreign drafts or money
What does it govern?
Currency Transmissions
What are exemptions?
Duly incorporated financial institutions or credit unions
What are the Penalties?
Specific penalties for non-compliance are not mentioned
Jurisdiction
Rhode Island