The purpose and effect is to amend existing rules to conform to and implement Chapter No. 2023-130, Laws of Florida, which was signed into law on May 24, 2023 and went into effect on July 1, 2023. The law prohibits check ....

 

DEPARTMENT OF FINANCIAL SERVICES

Finance

RULE NO.:RULE TITLE:

69V-560.1000:Disciplinary Guidelines

69V-560.609:Suspicious Activity Report Filings

69V-560.704:Records to Be Maintained by Check Cashers

PURPOSE AND EFFECT: The purpose and effect is to amend existing rules to conform to and implement Chapter No. 2023-130, Laws of Florida, which was signed into law on May 24, 2023 and went into effect on July 1, 2023. The law prohibits check cashers from cashing corporate checks for payees where the aggregate face amount of all such checks exceeds 200 percent of a payee’s payroll amount as reported in its workers' compensation policy during the policy coverage period. In addition, the rules are being amended to bring language in rule text in parity with the disciplinary guidelines form.

SUMMARY: The amended rules will provide administrative penalties for persons who violate the 200 percent check cashing limit, will no longer require check cashers to file a suspicious activity report for check cashing transactions exceeding established check cashing limits, will no longer require check cashers to maintain documentation of a payee’s annual volume of check cashing and annual check cashing limits, will require check cashers to maintain documentation indicating the amount of a payee’s payroll amount, will require check cashers to maintain documentation stating under what circumstances a payee is not required to obtain a workers’ compensation policy, and will require check cashers to review active customer files every twelve months. In addition, the amendments will bring language in rule text in parity with the penalties assessed in the disciplinary guidelines.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Agency expressly relies on an analysis of potential impact conducted by persons with subject matter knowledge of this rule.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 560.105, 560.1141, 560.123, 560.309, 560.310

LAW IMPLEMENTED: 560.109, 560.1092, 560.1105, 560.111, 560.1115, 560.113, 560.114, 560.1141, 560.118, 560.123, 560.1235, 560.125, 560.126, 560.128, 560.208, 560.2085, 560.209, 560.210, 560.211, 560.213, 560.303, 560.309, 560.310, 560.403, 560.404, 560.405, 560.406

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Sheila Harley, Office of General Counsel, [phone], [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Sheila Harley, Office of General Counsel, [phone], [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

69V-560.1000 Disciplinary Guidelines.

(1) Pursuant to Section 560.1141, F.S., disciplinary guidelines applicable to each ground for disciplinary action that may be imposed by the Office against a person for a violation of Chapter 560 F.S., are hereby adopted. The disciplinary guidelines are contained in “Office of Financial Regulation, Division of Consumer Finance, Form OFR-560-09, Disciplinary Guidelines for Money Services Businesses, which is hereby incorporated by reference, effective XX-XXXX 08-2023.  A copy of the disciplinary guidelines is available on the Office’s website at www.flofr.gov and http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-15704. For the purpose of this rule and the disciplinary guidelines, the term “citation” means: a notice of non-compliance; written agreement; or final order docketed by the agency that specifies a violation of Chapter 560, F.S., or any rule promulgated under that chapter.

(2) through (5) No change

(6) The ranges for suspension imposed by the disciplinary guidelines are 3 to 10 days for an “A” level suspension; 10 to 20 days for a “B” level suspension; and 20 to 30 days for a “C” level suspension; and up to 90 days for a “D” level suspension. A “D” level suspension may be terminated early if the money services business cures the violation.

Rulemaking Authority 560.105, 560.1141 FS. Law Implemented 560.109, 560.1092, 560.1105, 560.111, 560.113, 560.114, 560.1141, 560.118, 560.123, 560.1235, 560.125, 560.126, 560.128, 560.208, 560.2085, 560.209, 560.210, 560.211, 560.213, 560.303, 560.309, 560.310, 560.403, 560.404, 560.405, 560.406 FS. History–New 6-7-09, Amended 11-28-19, 2-16-23, 08-03-23, XX-XX-XX.

 

69V-560.609 Suspicious Activity Report Filings.

(1) through (3) No change

(4) Check cashing transactions involving corporate payment instruments that exceed the check cashing limits established pursuant to subparagraph 69V-560.704(4)(d)7., F.A.C. are deemed suspicious and require the check casher to file a suspicious activity report pursuant to this rule for each transaction.

Rulemaking Authority 560.105, 560.123, 560.309 FS. Law Implemented 560.123, 560.1235, 560.309 FS. History–New 1-13-09, Amended 11-28-19, XX-XX-XX.

69V-560.704 Records to Be Maintained by Check Cashers.

(1) through (3) No change

(4) In addition to the records required in subsections (2) and (3), for payment instruments exceeding $1,000.00, the check casher shall:

(a) No change

(b) No change

(c) No change

(d) Create and maintain a customer file for each entity listed as the payee on corporate payment instruments accepted by the licensee. Each customer file must include, at a minimum, the following information:

1. No change

2. No change

3. No change

4. No change

5. If the entity has an active workers’ compensation policy, the licensee must also maintain a copy of the policy declaration page or other document provided by the insurer indicating the payroll amount of coverage. For purposes of this rule, payroll may also be identified in the workers’ compensation policy as “annual remuneration.”

6. No change

7. A written corporate customer profile which includes: the full legal name of each beneficial owner, as defined in 31 C.F.R. s. 1010.230(d), effective July 1, 2018, is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-11464, of the corporate customer; an explanation of the customer’s business model; type(s) of services offered;, and a written statement signed by the authorized officer of the corporate customer stating under what circumstances the corporate customer is not required or is exempt from obtaining a workers’ compensation policy, if there is no active workers’ compensation policy projected annual volume of check cashing; and annual check cashing limits as they relate to the corporate customer’s workers’ compensation policy coverage limits.

(e) All check cashers shall review and update all active customer files at least every twelve months annually. The required review and update shall be attested to by the compliance officer or their designee, and such documentation shall be maintained within each customer’s file. For purposes of this rule it shall not be necessary to update dormant customer files. Should a customer previously identified as being dormant, resume transacting business with the licensee, the customer file information shall be updated before accepting any payment instrument.

(5) No change

Rulemaking Authority 560.105, 560.310 FS. Law Implemented 560.1105, 560.310 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.704, Amended 1-13-09, 10-12-15, 1-6-20, 2-16-23, XX-XX-XX.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Gregory C. Oaks

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 19, 2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: August 9, 2023