Application Forms, Procedures and Requirements, Definitions, Requirements, Renewal Deadlines, Late Fees and Requirements, Bond, Quarterly Reports to Be Filed by Check Cashers, Annual Filing of Financial Statements by Part II Registrants

DEPARTMENT OF FINANCIAL SERVICES
Finance

RULE NO: RULE TITLE
69V-560.102: Application Forms, Procedures and Requirements
69V-560.103: Definitions
69V-560.201: Requirements
69V-560.302: Renewal Deadlines, Late Fees and Requirements
69V-560.402: Bond
69V-560.602: Quarterly Reports to Be Filed by Check Cashers
69V-560.606: Annual Filing of Financial Statements by Part II Registrants

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 33 No. 8, February 23, 2007 issue of the Florida Administrative Weekly.

In response to comments from the staff of the Joint Administrative Procedures and The Money Services Round Table (TMSRT), the Office of Financial Regulation has revised Rules 69V-560.102, 69V-560.103, 69V-560.201, 69V-560.302, 69V-560.402, 69V-560.602, and 69V-560.606, F.A.C. A summary of the revisions, along with the revised rule text, is provided below.

Rule 69V-560.102. Forms OFR-560-03 (General Instructions), OFR-560-02 (General Instructions), and the Fingerprint Card (FL922720Z) are amended to correct technical errors and deficiencies. Form OFR-560-01 is amended to reflect to changes being made to Rule 69V-560.402, relating to bonding. Paragraph (10)(a) of the rule is amended by adding the word “form” after the word “application” to clarify that required amendments are those that address information specified in the application form. This change was in response to comments from TMSRT. The proposed amendment to paragraph (10)(c) has been removed. The history notes are amended to reference Section 560.209, F.S., which relates to bonding and alternative security devices.

Rule 69V-560.103. The provision creating a definition of the term “net worth” has been removed. This change is in response to comments from the TMSRT.

Rule 69V-560.201. This rule references Form OFR-560-01, which has been amended. No other changes have been made to the rule.

Paragraph 69V-560.302(3)(b). This rule is amended to correct a cross reference.

Rule 69V-560.402. Subsections (5) through (7) are revised to address comments from the TMSRT regarding bonding requirements. Forms OFR-560-01 and OFR-560-07 are amended accordingly.

Rule 69V-560.602. This rule is amended to correct a technical error to Form OFR-560-04. The rule and the form are amended to remove language that references penalties for failure to file the quarterly report in a timely manner. The penalties and exceptions to the penalties are provided in Section 560.118(2)(c), F.S.

Paragraph 69V-560.606(1)(a). Form OFR-560-08, which is incorporated by reference in this rule, has been amended to correct a cross reference. No other changes have been made to this rule.

The revised rule text is as follows:

69V-560.102 Application Forms, Procedures and Requirements.

(1) Forms. All forms referenced in this rule are available on the Office of Financial Regulation’s website at www.flofr.com and by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0376 Application forms for all registrations covered by these rules may be obtained at no cost from the Office of Financial Regulation’s website (www.dbf.state.fl.us), by telephone, or in writing. All applications must be in the format required by the Office of Financial Regulation. Requests for forms should be sent to: Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.

(2)(a) Applications in the format required by the Office of Financial Regulation, accompanied by the prescribed fee for the requested registration, shall be filed with the Office of Financial Regulation at the address in subsection (1) above. No application will be deemed filed or received unless accompanied by the proper filing fee; or

(b) In lieu of filing the required application forms, an applicant may file the application information electronically by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

(3)(a) All applicants for registration must file a completed application Form OFR-560 MT-5-01, Application to Register as a Money Transmitter Pursuant to Chapter 560, F.S., effective 1/1/2007 10/01, which is hereby incorporated by reference.

(b) All applicants for registration who propose to engage in deferred presentment transactions as defined in Section 560.402, F.S., shall file a completed Form OFR-560-03 MT-3-01, Declaration of Intent to Engage in Deferred Presentment Transactions, effective 1/1/2007 10/01, which is hereby incorporated by reference, together with the required nonrefundable fee for deferred presentment providers. Applicants must be registered pursuant to Part II or Part III of Chapter 560, F.S., in order to engage in deferred presentment transactions.

(c) All applicants for registration shall submit a completed Form OFR-560-02 MT-2-01, Location Notification Form, effective 1/1/2007 10/01, which is hereby incorporated by reference, for each proposed “location” as defined in Rule 69V-560.103, F.A.C., not including the applicant’s primary business location, together with the required nonrefundable fee.

(d) All applicants for registration as a payment instrument seller or funds transmitter shall file audited financial statements prepared in accordance with generally accepted accounting principles that are dated within 90 days prior to the date the application is received by the Office of Financial Regulation, and if available, audited financial statements for the immediately preceding 2-year period. In cases where the applicant is a wholly owned subsidiary of another corporation, the parent's consolidated audited financial statements may be submitted to satisfy this requirement. If the date of the application is more than 90 days after the applicant's fiscal year-end audited financial statements, the applicant shall file unaudited financial statements reviewed by an independent certified public accountant dated within 90 days of the date of the application for the period subsequent to the audit report, together with the audited financial statements for the most recent fiscal year. If the applicant has been in business less than 12 months, and has not prepared an audited financial statement, the applicant may file unaudited financial statements reviewed by an independent certified public accountant.

(4)(a) The responsible person who will be in charge of the applicant's business activities in this state, and each existing or proposed director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer, partner, executive officer, principal, member, joint venturer, and all controlling shareholders shall complete the Biographical Summary in Form OFR-560-01 MT-7-01, Biographical Form, effective 10/01, which is hereby incorporated by reference in subsection (3). If any of the foregoing individuals are non-U.S. Citizens, Addendum (1) to the Biographical Summary Form shall also be completed and filed.

(b) An existing or proposed director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer, partner, member, joint venturer, executive officer, controlling shareholder, and responsible person shall review and attest to the accuracy of the forms submitted on his or her behalf.

(5) The responsible person who will be in charge of the applicant’s business activities in this state, and each existing or proposed director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer, partner, executive officer, principal, member, joint venturer, and all controlling shareholders, unless exempt under Section 560.205(1) or 560.306(1), F.S., shall file a completed Florida Fingerprint Card (FL922720Z FL921050Z), effective________, which is hereby incorporated by reference, accompanied by a nonrefundable $47 processing fee. If the Federal Bureau of Investigation cannot process the fingerprint card because of illegible fingerprints, a second card must be submitted. If that card cannot be processed, it will be necessary to submit a third card along with a nonrefundable fee of $24 to cover the cost of processing the card. The Office of Financial Regulation reserves the right to require as many submissions of fingerprint cards and fees as may be necessary until such time as the card can be properly processed by the appropriate law enforcement agency. Any applicant claiming the statutory exemption from the fingerprint requirement shall submit evidence to support its claim to the exemption.

(6) No change.

(7) Request for Additional Information. All information the applicant wants to present to support the application should be submitted with the original filing. Any request for additional information will be made by the Office of Financial Regulation within thirty (30) days after receipt of the application. The additional information must be received by the Office of Financial Regulation within forty-five (45) days from the date of the request. Failure to respond within forty-five (45) days from the date of the request shall be grounds for the Office of Financial Regulation to deny the application for failure to complete the application, and the application may be denied pursuant to subsection 120.60(1), F.S.

(8) Refunds. If the application is withdrawn or denied, all fees are nonrefundable.

(9) Withdrawal of Application. An application may be withdrawn if the applicant submits a written request for same that is approved by the Office of Financial Regulation before the application is approved or denied.

(10)(8)(a) Amendment of Application. If the information contained in any application form for a registration as a money transmitter, or in any amendment thereto, becomes inaccurate for any reason, the registrant shall file an amendment correcting such information within thirty (30) days of the change on Form OFR-560-01, which is incorporated by reference in subsection (3). A request to amend an application must be in writing and shall be submitted to the Office of Financial Regulation at the address in subsection (1).

(b) Provided the Office of Financial Regulation has not already docketed a Notice of Intent to Deny the Application, an applicant may amend the application after receiving written permission from the Office of Financial Regulation following the Office of Financial Regulation's review of and determination that the applicant's written request to amend:

1. through 4. No change.

5. May Shall not be denied pursuant to paragraph (c), if the request to amend makes a material change to the application.

(c) A request to amend which makes a material change to the application or to the Office of Financial Regulation's evaluation of the application is a violation of subsection (7) and the Office of Financial Regulation shall deny the application in accordance with Section 560.114(1)(a), F.S., unless the applicant has made a good faith effort to comply with the statutory requirements of Chapter 560, F.S., and the rules of this chapter. Material changes include:

1. No change.

2. The substitution or addition of a director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer, partner, member, joint venturer, responsible person, or controlling shareholder;

3. through 5. No change.

(d) No change.

(9) When an application is denied on the grounds set forth above, the applicant shall be duly notified.

Specific Authority 215.405, 560.105(3), 560.118(2), 560.205(1), 560.205(2), 560.209(2)(a), 560.403(1) FS. Law Implemented 215.405, 560.102, 560.118, 560.129, 560.204, 560.205, 560.209, 560.303(1), 560.305, 560.306, 560.307, 560.403 FS. History–New 9-24-97, Amended 11-4-01, 12-11-03, Formerly 3C-560.102, Amended________.

 

69V-560.103 Definitions.

For the purposes of this chapter, the following definitions shall apply:

(1) through (5) No change.

(6) “Financial Statements” shall be defined as those reports, schedules and statements, prepared in accordance with United States Generally Accepted Accounting Principles, which contain at least the following information:

(a) Statement of Financial Condition (Balance Sheet); and

(b) Statement of Income;.

(c) Statement of Cash Flows; and

(d) Statement of Changes in Stockholders’ Equity.

(7) through (10) No change.

(11) “Publicly Traded” means that the stock is currently traded on a national securities exchange registered with the U.S. Securities and Exchange Commission or traded on an exchange in a country other than the United States regulated by a regulator with equivalent authority and power as the U.S. Securities and Exchange Commission and the disclosure and reporting requirements of such regulator are substantially similar to those of the U.S. Securities and Exchange Commission.

(12)(11) “Registrant” means a person registered by the Office of Financial Regulation pursuant to Part II or Part III of the Money Transmitters’ Code.

(13)(12) “Responsible person” means any individual who has principal active management authority over the business as defined by Section 560.103(18), F.S.

(14)(13) “Unaudited Financial Statements” shall be defined as those financial statements prepared in accordance with United States Generally Accepted Accounting Principles and reviewed by a Certified Public Accountant, but not accompanied by the statements and representations as set forth in paragraphs (3)(b), (c), and (d) of this rule.

(15)(14) “Holiday” means such days as are designated by Section 110.117, F.S.

(16)(15) “Gross Income” means Gross Revenue (Sales) – Cost of Goods Sold.

Specific Authority 560.105(2) FS. Law Implemented 560.103, 560.118(2), 560.205(3), (4), 560.208 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.103, Amended 9-14-04,________.

 

69V-560.302 Renewal Fees, Deadlines, Late Fees and Requirements.

(1)(a) Payment Instrument Seller or a Funds Transmitter (Part II registrant): Registrations issued to Part II registrants shall remain effective through April 30 of the second year following the date of issuance of the registration, not to exceed 24 months, unless during such period the registration is surrendered, suspended, or revoked.

(b) A renewal of a funds transmitter or payment instrument seller registration (Part II registrant) shall include a nonrefundable renewal fee of $1,000.00, plus $50.00 for each location being renewed, including branch offices and authorized vendors, operating within this state, or a total 2-year nonrefundable renewal fee of $20,000.00 to renew all such locations operating within this state. The $50.00 location renewal fee shall not apply to the registrant's primary business address.

(c)(b) All renewal fees applications for Part II registrants must be received by the office on or filed on or after January 1 of the year in which the existing registration expires, but before the expiration date of April 30. If the renewal fees are received a renewal application is filed within 60 calendar days after the expiration date of an existing registration, the renewal application and renewal fees must shall be accompanied by a nonrefundable late fee of $500.00. If the registrant has not filed the requisite renewal fees and late fees a renewal application within 60 calendar days after the expiration date of an existing registration, the registration shall expire and a new application must shall be filed pursuant to Section 560.205, F.S.

(2)(a) Check Casher or Foreign Currency Exchanger (Part III registrant): Registrations issued to Part III registrants shall remain in effect through the remainder of the second calendar year (December 31) following the date the registration was issued. Thereafter, renewals are issued for a 24-month period from December 31 of the year the registration or renewal expires, unless during such period the registration is surrendered, suspended, or revoked.

(b) A renewal of a check casher or foreign currency exchanger registration (Part III registrant) shall include a nonrefundable renewal fee of $500.00, plus $50.00 for each location being renewed, including branch offices and authorized vendors, operating within this state, or a total 2-year nonrefundable renewal fee of $20,000.00 to renew all such locations operating within this state. The $50.00 location renewal fee shall not apply to the registrant's primary business address.

(c)(b) All renewal fees applications for Part III registrants must be received by the office on or before the expiration date of filed on or after June 1 of the year in which the existing registration expires, but not later than December 31 of that year. If the renewal fees are received A renewal application, renewal fees, and a late fee of $250.00 must be filed within 60 calendar days after the expiration date of an existing registration, the renewal fees must be accompanied by a non-refundable late fee of $250.00 in order for the registration to be reinstated. If the registrant has not filed the requisite renewal fees and late fees a renewal application within 60 calendar days after the expiration date of an existing registration, the registration shall expire and a new application must be filed pursuant to Section 560.307, F.S.

(3)(a) Deferred Presentment Providers (Part IV): The “Declaration of Intent to Engage in Deferred Presentment Transactions” shall expire concurrently with the registrant's Part II or Part III registration. A registrant who intends to continue to engage in deferred presentment transactions must concurrently renew their registration pursuant to Part II or Part III in order to remain qualified to act as a deferred presentment provider. A declaration of intent non-refundable renewal fee of $1000 must be received by the Office on or before the expiration date of the registrant’s Part II or Part III registration. The renewal of a deferred presentment provider’s “Declaration of Intent to Engage in Deferred Presentment Transactions” shall be indicated on Form OFR-MT-6-01 (Application to Renew Registration as a Money Transmitter Pursuant to Chapter 560, F.S.), and submitted together with the required nonrefundable renewal fee for a deferred presentment provider.

(b) If the declaration of intent renewal fee is received A renewal declaration of intent and fee, and a late fee of $500.00, must be filed within 60 calendar days after the expiration of the registrant’s Part II or Part III an existing registration, the declaration of intent renewal fee must be accompanied by a non-refundable late fee of $500.00 in order for the declaration of intent to be reinstated. If the registrant has not filed the requisite declaration of intent renewal fee and late fee a renewal declaration of intent within 60 calendar days after the expiration date of the registrant’s Part II or Part III an existing registration, the declaration of intent shall expire and a new declaration must be filed pursuant to Section 560.403, F.S.

(4) If any date in this rule falls on a Saturday, Sunday, or legal holiday pursuant to Section 110.117, F.S. weekend or holiday, the renewal application together with the required renewal fees and any applicable late fees must be received by the Office of Financial Regulation by the close of business on the next business day.

Specific Authority 560.105(3) FS. Law Implemented 560.206, 560.207, 560.308, 560.403 FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.302, Amended________.

 

69V-560.402 Bond.

(1) No change.

(2) The corporate surety bond must be issued by a bonding company or insurance company authorized to do business in this state.  The originally executed Form OFR-560-06, Money Transmitter Surety Bond Form, effective 1/1/2007, which is hereby incorporated by reference, shall be maintained on file with the Office at all times.  The bond form must be executed by the bonding company and the applicant.

(3) All items pledged in lieu of a corporate surety bond must be held or deposited at a federally insured financial institution as defined by Section 655.005(1)(h), F.S. The originally executed Form OFR-560-05, Pledge Agreement, effective 1/1/2007, which is hereby incorporated by reference, shall be maintained on file with the Office at all times. The Pledge Agreement bond form included in Form OFR-MT-5-01, must be executed by the federally insured financial institution and the applicant.

(4) No change.

(5)(a) The amount of the surety bond, collateral deposit, or combination thereof shall under no circumstances be for an amount less than $50,000.  The amount of the surety bond or collateral deposit shall not exceed $250,000 except as provided in paragraph (b). The amount of the surety bond shall be calculated based upon 2% of the applicant’s projected total U.S. dollar volume of transactions for the first year of operation in accordance with the table below. Thereafter a registrant shall calculate annually the required amount of their surety bond based upon 2% of the registrant’s total U.S. dollar volume of transactions for the preceding 12 month period in accordance with the table below.

2% of U.S. dollar volume            Required amount of security device

$0 – $50,000                                   $50,000

$50,001 – $100,000                        $100,000

$100,001 – $150,000                      $150,000

$150,001 – $200,000                      $200,000

$200,001 – $499,999                      $250,000

(b) In accordance with paragraph 560.209(2)(a), F.S., the amount of the surety bond, collateral deposit, or combination thereof shall be $500,000 under the following extraordinary circumstances. For the purposes of this rule, “extraordinary circumstances” means:

1. if the registrant’s total U.S. dollar volume of transactions for the preceding 12 month period exceeds $25,000,000; or,

2. if the total number of active locations/vendors as determined in paragraph (6)(b) of this rule is greater than 250.

(6)(a) For purposes of compliance with the provisions of this rule, a registrant shall calculate the amount of their surety bond, collateral deposit, or combination thereof in accordance with subsection (5) of this rule each December 31st for the preceding 12 months.

(b)  For purposes of compliance with subparagraph (5)(b)2. of this rule the number of active locations/vendors shall be the number of branches in operation and the number of vendors currently under contract with the registrant on December 31st.

(7)  After completing one full year of registration, each registrant shall annually file on Form OFR-560-07, Security Device Calculation Form, revised 1/1/2007, which is hereby incorporated by reference and available on the Office website at www.flofr.com and by mail at the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0376, the required information regarding the registrant’s amount of surety bond, collateral deposit, or combination thereof as prescribed in subsection (5) of this rule not later than January 31st of each calendar year for the preceding calendar year.  If based on the registrant’s calculation, the amount of the device must be increased, the registrant shall provide to the Office an additional surety bond, surety rider for an existing bond, collateral deposit pledge agreement or combination thereof reflecting the amount required no later than sixty (60) days following the deadline to file Form OFR-560-07, Security Device Calculation Form.

(b) The required bond, collateral deposit or combination thereof for renewal registration shall be calculated in accordance with Form OFR-MT-6-01.

(c) The required bond, collateral deposit or combination thereof shall not exceed $250,000.00, unless the Office of Financial Regulation determines that an extraordinary circumstance, such as those of Section 560.209(2)(a), F.S., exists which requires an additional amount above $250,000.00. However, the maximum bond, collateral deposit or combination thereof shall be $500,000.00.

(8)(6) The bond, collateral deposit or combination thereof shall remain in place for 5 years after the registrant ceases operations in this state. The security shall be reduced or eliminated prior to that time upon written approval, if the Office of Financial Regulation determines that the registrant's outstanding payment instruments or funds transmitted in this state have been paid or reduced and that such lesser amount adequately protects the interests of the public.

(9)(7) A registrant must at all times have and maintain the bond, collateral deposit or combination thereof in the amount prescribed by the Office of Financial Regulation. If the Office of Financial Regulation at any time reasonably determines that the bond or elements of the collateral deposit are insecure, deficient in amount, or exhausted in whole or in part, the Office of Financial Regulation shall, by written order, require the filing of a new or supplemental bond or the deposit of new or additional collateral deposit items.

(10) All forms incorporated by reference in this rule are available on the Office’s website at www.flofr.com and by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0376.

Specific Authority 560.105(3), 560.209(2)(a) FS. Law Implemented 560.207, 560.209 FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.402, Amended________.

 

69V-560.602 Quarterly Reports to Be Filed by Check Cashers.

(1) Every money transmitter registered pursuant to the Code registered check casher shall submit a quarterly report to the Office of Financial Regulation by filing a completed on  Form OFR-560-04MT-1-01, Money Transmitter Quarterly Report Form, effective 1/1/2007 10/01, which is hereby incorporated by reference and available on the Office’s website at www.flofr.com and by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida  32399-0376. A completed quarterly report form Such report shall be received by the Office of Financial Regulation no later than forty-five (45) days after the conclusion of each quarter and shall be sent to Division of Securities and Finance at the address listed in subsection 69V-560.102(1), F.A.C. Should the forty-fifth day fall on a Saturday, Sunday weekend or holiday, the reports must be received by the Office of Financial Regulation no later than the next business day.

(2) In lieu of filing Form OFR-MT-1-01, a registrant may submit the required quarterly report information electronically on or before the deadline by following the applicable instructions on the Office of Financial Regulation’s website (www.dbf.state.fl.us) on the Internet.

(3) The Office of Financial Regulation shall levy a late payment penalty of $100.00 per day or part thereof that a report is past due. A report is “past due” if it is received by the Office of Financial Regulation one or more days beyond the period defined in subsection (1).

Specific Authority 560.105(3), 560.118(2)(b) FS. Law Implemented 560.118(2) FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.602, Amended ________.

69V-560.606 Annual Filing of Financial Statements by Part II Registrants.

No change.