The purpose and effect of the amended rule is to remove the disciplinary guidelines as found in the rule text and to transfer the disciplinary guidelines provisions to a form incorporated into the rule entitled "Office of Financial Regulation, ...
DEPARTMENT OF FINANCIAL SERVICES
RULE NOS.:RULE TITLES:
69V-560.1000Disciplinary Guidelines
69V-560.1012Adoption of Forms
69V-560.1013Electronic Filing of Forms and Fees
69V-560.102Application or Appointment Procedures and Requirements
69V-560.103Definitions
69V-560.302Renewal Fees, Deadlines, and Requirements
69V-560.504Reimbursement Rates for Examinations Conducted by the Office
69V-560.505Reimbursement Rates for Examinations Conducted by a Third Party
69V-560.602Quarterly Reports
69V-560.606Annual Filing of Financial Audit Reports by Part II Licensees
69V-560.608Currency Transaction Report Filings
69V-560.609Suspicious Activity Report Filings
69V-560.610Report of International Transportation of Currency or Monetary Instruments
69V-560.702Payment Instrument Sellers
69V-560.703Money Transmitters
69V-560.704Records to Be Maintained by Check Cashers
69V-560.705Foreign Currency Exchangers
PURPOSE AND EFFECT: The purpose and effect of the amended rule is to remove the disciplinary guidelines as found in the rule text and to transfer the disciplinary guidelines provisions to a form incorporated into the rule entitled "Office of Financial Regulation, Division of Consumer Finance, Disciplinary Guidelines for Money Services Businesses," to amend the section specifying the mitigating and aggravating factors the Office shall consider in determining appropriate penalties, to adopt new forms, to readopt old forms and revise names of old forms, to update rule text to clarify the Division’s name and zip code, to delete and amend definition language, to update Florida Department of Law Enforcement’s Livescan website link, to remove provisions allowing for extra calculated time for dates falling on the weekend or legal holidays, to revise and clarify reimbursement rates for examinations, to clarify the records required to be maintained related to inbound and outbound transmissions, to update citations to federal laws and rules, to clarify the documents required to be maintained in customer files, to delete certain definitions found in Rule 69V-560.704, F.A.C. to define the phrase “its own commercial account” as referenced in section 560.309(3), F.S., to clarify termination of electronic log requirements, to specify information required to be submitted into the check cashing database, to update and clarify current statutory citations in rule text, to provide the current rulemaking authority for the rules, and to remove obsolete statutory references in the law implemented section of rule text.
SUMMARY: The rule amendments will remove the disciplinary guidelines form the body of the rule and incorporate the disciplinary matrix by reference, make updates and technical changes, and revise the examination fees charged to licensees which will result in a cost savings to the industry.
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: 1) No requirement for a SERC was triggered under Section 120.541(1), F.S.; and 2) The new rules will not exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.
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: 215.405, 560.105, 560.1091, 560.1092, 560.118, 560.123, 560.126, 560.141, 560.1141, 560.2085, 560.205, 560.209, 560.309, 560.310, 560.403 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Sheila Harley, 850/410-9716, sheila.harley@flofr.com
THE FULL TEXT OF THE PROPOSED RULE IS:
69V-560.1000 Disciplinary Guidelines.
Pursuant to Section 560.1141, F.S., listed below are dDisciplinary gGuidelines for Money Services Businesses, incorporated by reference and adopted by this rule, effective XX/XX/XXXX, available on the Office’s website at www.flofr.com and www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX are applicable to each ground for disciplinary action that may be imposed by the Office against a person Chapter 560, F.S., licensee for a material violation of Chapter 560, F.S. In determining an appropriate penalty within the range of penalties prescribed in this rule for each violation as based upon the citation number, the Office shall consider subsections (1) and (2) the circumstances set forth in subsection (148). For purposes of this rule, the term “citation” means any final order docketed by the agency written notice provided to and received by the licensee that specifies a violation of Chapter 560, F.S., or any rule promulgated under that chapter.
Statute
Violation Description
1st Citation
2nd Citation
3rd Citation
(1)
Section 560.109(3)(a), F.S.
Failure to make available to the Office within 3 days all required books and records after written notice.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(2)
Section 560.109(7), F.S.
Failure to pay reasonable and necessary costs for exams or investigations based on actual costs incurred.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(3)
Section 560.1092(1), F.S.
Failure to pay to the Office the expenses
of an examination at a rate adopted by
rule.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(4)
Section 560.1105, F.S.
Failure to maintain all records for 5 years.
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(5)
Section 560.1105(1), F.S.
Failure to make books and records available to the Office within 3 business days after receipt of a written request.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(6)
Section 560.111(1)(a), F.S.
Receiving or possessing property, except in payment of a just demand, and, with intent to deceive or defraud, to omit to make or to cause to be made a full and true entry thereof in its books and accounts, or to concur in omitting to make any material entry thereof.
Fine: C
Revocation
N/A
N/A
(7)
Section 560.111(1)(b), F.S.
Embezzle, abstract, or misapply any money, property, or other thing of value belonging to the money services business, an authorized vendor, or customer with intent to deceive or defraud.
Fine: C
Revocation
N/A
N/A
(8)
Section 560.111(1)(c), F.S.
Making false entry in books and records with intent to deceive or defraud another person, appropriate regulator, or authorized third party appointed by the Office to examine or investigate a licensee or its authorized vendor.
Fine: C
Suspension: C
Revocation
N/A
N/A
(9)
Section 560.111(1)(d), F.S.
Engaging in acts that violate 18 U.S.C. s. 1956, 31 U.S.C. s. 5324, or any law or rule of another state or the United States relating to a money services business, deferred presentment provider, or usury which is a ground for the denial or revocation of a money services business or deferred presentment provider or its equivalent.
Fine: C
Revocation
N/A
N/A
(10)
Section 560.111(1)(e), F.S.
Filing with the Office, signing as a duly authorized representative, or delivering or disclosing to the Office any books and records known to be fraudulent or false as to any material matter.
Fine: C
Revocation
N/A
N/A
(11)
Section 560.111(1)(f), F.S.
Placing among a money services business any note, obligation, or security that the money services business or its authorized vendor does not own or is known to be fraudulent or otherwise worthless or to represent to the Office that these documents are known to be fraudulent or otherwise worthless.
Fine: C
Revocation
N/A
N/A
(12)
Section 560.114 (1)(a), F.S.
Failure to comply with any order of the Office or any written agreement entered into with the Office.
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
Fine: C
Revocation
(13)
Section 560.114(1)(b), F.S.
Fraud, misrepresentation, deceit, or gross negligence in any transaction by a money services business, regardless of reliance thereon by, or damage to, a customer.
Fine: C
Suspension: C
Revocation
Fine: C
Revocation
N/A
(14)
Section 560.114(1)(c), F.S.
Fraudulent misrepresentation, circumvention, or concealment of any matter that must be stated or furnished to a customer pursuant to Chapter 560, F.S., regardless of reliance thereon by, or damage to, such customer.
Fine: C
Revocation
N/A
N/A
(15)
Section 560.114(1)(d), F.S.
False, deceptive, or misleading advertising.
Fine: C
Suspension: C
Fine: C
Suspension: C
Revocation
Fine:
Suspension: C
Revocation
(16)
Section 560.114(1)(e), F.S.
Failure to maintain, preserve, keep available for examination, and produce all books, accounts, files, or other documents required by Chapter 560, F.S.
Fine: A
Suspension: A
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(17)
Section 560.114(1)(f), F.S.
Refusing to allow the examination or inspection of books, accounts, files, or other documents by the Office pursuant to Chapter 560, F.S., or to comply with a subpoena issued by the Office.
Fine: B
Suspension: B
Revocation
Fine: C
Revocation
Revocation
(18)
Section 560.114(1)(g), F.S.
Failure to pay a judgment recovered in any court by a claimant in an action arising out of a money transmission transaction within 30 days after the judgment became final.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Revocation
(19)
Section 560.114(1)(h), F.S.
Engaging in acts prohibited under Section 560.111, F.S.
Fine: C
Revocation
N/A
N/A
(20)
Section 560.114(1)(i), F.S.
Insolvency
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: B
Revocation
(21)
Section 560.114(1)(j), F.S.
Failure to remove an affiliated party after the Office has issued and served a final order setting forth a finding that the affiliated party has violated a provision of Chapter 560, F.S.
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(22)
Section 560.114(1)(k), F.S.
Making a material misstatement, misrepresentation, or omission in an application, amendment, or appointment of an authorized vendor.
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(23)
Section 560.114(1)(l), F.S.
Committing any act that results in a license, or its equivalent, to practice any profession or occupation, being denied, suspended, revoked, or otherwise acted against by a licensing authority in any jurisdiction.
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(24)
Section 560.114(1)(m), F.S.
Being the subject of final agency action or its equivalent, issued by an appropriate regulator, for engaging in unlicensed money services business or deferred presentment provider activity in any jurisdiction.
Fine: C
Fine: C
Suspension: C
Fine: C
Suspension: C
(25)
Section 560.114(1)(n), F.S.
Committing any act resulting in a license or its equivalent to practice any profession or occupation being denied, suspended, revoked, or otherwise acted against by a licensing authority in any jurisdiction for a violation of 18 U.S.C. s. 1956, 18 U.S.C. s. 1957, and 18 U.S.C. s. 1960, 31 U.S.C. s. 5324, or any law or rule of another state or the United States relating to a money services business, deferred presentment provider, or usury.
Fine: C
Suspension: C
Revocation
Fine: C
Suspension: C
Revocation
Fine: C
Suspension: C
Revocation
(26)
Section 560.114(1)(o), F.S.
Having been convicted of, or entered a plea of guilty or nolo contendere to any felony or crime punishable by imprisonment of 1 year or more under the law of any state of the United States which involves fraud, moral turpitude, or dishonest dealing, regardless of adjudication.
Fine: C
Revocation
N/A
N/A
(27)
Section 560.114(1)(p), F.S.
Having been convicted of, or entered a plea of guilty or nolo contendere to a crime under 18 U.S.C. s. 1956 or 31 U.S.C. s. 5324 regardless of adjudication.
Fine: C
Revocation
N/A
N/A
(28)
Section 560.114(1)(q), F.S.
Having been convicted of, or entered a plea of guilty or nolo contendere to misappropriation, conversion, or unlawful withholding of moneys belonging to others, regardless of adjudication.
Fine: C
Revocation
N/A
N/A
(29)
Section 560.114(1)(r), F.S.
Failure to inform the Office in writing within 30 days after having pled guilty or nolo contendere to, or being convicted of, any felony or crime punishable by imprisonment of 1 year or more under the law of any state or the US, or any crime involving fraud, moral turpitude, or dishonest dealing.
Fine: B
Fine: C
Revocation
N/A
(30)
Section 560.114(1)(s), F.S.
Aiding, assisting, procuring, advising, or abetting any person in violating a provision of Chapter 560, F.S., or any order or rule of the Office or Commission.
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
N/A
(31)
Section 560.114(1)(t), F.S.
Failure to pay any fee, charge, or cost imposed or assessed under Chapter 560, F.S.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Revocation: C
(32)
Section 560.114(1)(u), F.S.
Failure to pay a fine assessed by the Office within 30 days after the due date as stated in the final order.
Fine: B
Suspension: B
Revocation
Fine: C
Revocation
Fine: C
Revocation
(33)
Section 560.114(1)(v), F.S.
Failure to pay any judgment entered by any court within 30 days after the judgment becomes final.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(34)
Section 560.114(1)(x), F.S.
Payment to the Office for a license or other fee, charge, cost, or fine with a check or electronic transmission of funds that is dishonored by the applicant’s or licensee’s financial institution.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Revocation
(35)
Section 560.114(1)(y), F.S.
Violations of 31 C.F.R. ss. 103.20, 103.22, 102.23, 103.27, 103.28, 103.29, 103.33, 103.37, 103.41, and 103.125, and United States Treasury Interpretative Release 2004-1. Note: For purposes of the application of this violation, the distinct federal codes referenced shall be treated as separate violations and penalties shall be applied separately for each code violation cited.
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
Fine: C
Suspension: C
Revocation
(36)
Section 560.114(1)(z), F.S.
Engaging in any practice or conduct that creates the likelihood of material loss, insolvency, or dissipation of assets of a money services business or otherwise materially prejudices the interests of its customers.
Fine: C
Suspension: C
Revocation
Fine: C
Suspension: C
Revocation
Fine: C
Suspension: C
Revocation
(37)
Section 560.114(2), F.S.
Immediate Suspension for failure to provide required records upon written request.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(38)
Section 560.118(1), F.S.
Failure to file annual financial audit reports with the Office pursuant to this Chapter 560, F.S., or related rules.
Fine: C
Revocation if
later than 90 days from due date
Fine: C
Revocation if later than 90 days from due date
Fine: C
Revocation if later than 90 days from due date
(39)
Section 560.118(2), F.S.
Failure to submit quarterly reports to the Office in the format specified by rule.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Suspension: C
Revocation
(40)
Section 560.123(3), F.S.
Failure to maintain a record of every transaction, which occurs in this state that involves currency greater than $10,000, in one or in aggregate in one day, and involves the proceeds of unlawful activity or is designed to evade reporting requirements of Section 560.123, F.S., or Chapter 896, F.S.
Fine: C
Revocation
N/A
N/A
(41)
Section 560.123(3)(c), F.S.
Failure to file a currency transaction report for every transaction noted in Section 560.123(3), F.S.
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(42)
Section 560.123(4), F.S.
Failure to comply with the money laundering, enforcement, and reporting provisions of Section 655.50, F.S., involving currency transactions and payment instruments, and Chapter 896, F.S., concerning offenses relating to financial transactions.
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(43)
Section 560.1235(1), F.S.
Failure to comply with all state and federal laws and rules relating to money laundering, including Section 560.123, F.S.; and 31 C.F.R. ss. 103.20, 103.22, 103.23, 103.27, 103.28, 103.29, 103.33, 103.37, and 103.41.
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(44)
Section 560.1235(2), F.S.
Failure to maintain, review, and update an anti-money laundering program.
Fine: A
Suspension: A
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(45)
Section 560.1235(3), F.S.
Failure to comply with United States Treasury Interpretive Release 2004-1.
Fine: B
Suspension: B
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(46)
Section 560.126(1)(a), F.S.
Failure to provide the Office notice within 30 days after occurrence of a bankruptcy filing.
Fine: C
Suspension: C
Fine: C
Suspension: C
Fine: C
Suspension: C
(47)
Section 560.126(1)(b), F.S.
Failure to provide the Office notice within 30 days after occurrence of the commencement of an administrative or judicial suspension, revocation, or denial of a license from any other state in the United States.
Fine: A
Suspension: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(48)
Section 560.126(1)(c), F.S.
Failure to provide the office notice within 30 days after occurrence of a felony indictment relating to a money services business or deferred presentment provider involving the licensee, a vendor, or affiliated party. Note: Any licensee suspended under this provision shall be suspended until a final disposition has been reached by the court for the case defined in the suspension order. Any rights to appeal will not be considered in the application of this section.
Fine: B
Suspension: B
Fine: C
Suspension: C
Fine: C
Suspension: C
(49)
Section 560.126(1)(d), F.S.
Failure to provide the office notice within 30 days after occurrence of a felony conviction, guilty plea, or plea of nolo contendere, regardless of adjudication, of a licensee, vendor, or affiliated party.
Revocation
Revocation
Revocation
(50)
Section 560.126(1)(e), F.S.
Failure to provide the office notice within 30 days after occurrence of an interruption of any corporate surety bond required.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Suspension: C
(51)
Section 560.126(1)(g), F.S.
Failure to provide the office with written notice sent by registered mail within 30 days after the occurrence or knowledge of the notification by law enforcement or a prosecutorial agency that the licensee or vendor is under criminal investigation.
Fine: B
Suspension: B
Fine: C
Suspension: C
Fine: C
Revocation
(52)
Section 560.126(2), F.S.
Failure to report to the Office any change in application or renewal information on Form OFR 560-01, which is incorporated by reference in Rule 69V-560.1012, F.A.C., within 30 days after the change.
Fine: A
Fine: B
Fine: C
Suspension: C
(53)
Section 560.126(3), F.S.
Failure to report any change in ownership, control, or responsible persons of the licensee.
Fine: A
Fine: B
Fine: C
Suspension: C
(54)
Section 560.128(1), F.S.
Failure to provide each customer with a toll-free number or the office’s toll-free number and address for consumer contact.
Fine: A
Fine: A
Fine: B
(55)
Section 560.208(4), F.S.
Failure to place assets that are the property of a customer in a segregated account in a federally insured institution or the failure to maintain separate accounts for operating capital and the clearing of customer funds.
Fine: B
Fine: C
Suspension: C
Fine: C
Revocation
(56)
Section 560.208(5), F.S.
Failure to ensure that money transmitted is available to the designated recipient within 10 business days after receipt.
Fine: B
Fine: C
Fine: C
Suspension: C
(57)
Section 560.208(6), F.S.
Failure to immediately upon receipt of currency or payment instrument provide a confirmation or sequence number to the customer verbally, by paper, or electronically.
Fine: A
Fine: C
Fine: C
Suspension: C
(58)
Section 560.2085(1), F.S.
Failure to notify the Office within 60 days after a vendor commences or terminates licensed activity.
Fine: A
Fine: B
Fine: C
Suspension: C
(59)
Section 560.2085(2), F.S.
Failure to enter into a written contract with an authorized vendor, signed by the licensee and the authorized vendor.
Fine: A
Fine: B
Fine: C
Suspension: C
(60)
Section 560.2085(2)(a), F.S.
The vendor contract must set forth the nature and scope of the relationship between the licensee and the vendor, including rights and responsibilities of the parties.
Fine: A
Fine: B
Fine: C
Suspension: C
(61)
Section 560.2085(2)(b), F.S.
Failure to enter into a written contract that includes requirements of Section 560.2085(2)(b) (1-8), F.S.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(62)
Section 560.2085(3), F.S.
Failure to develop and implement written policies and procedures to monitor compliance with applicable state and federal law by a licensee’s authorized vendors.
Fine: B
Fine: B
Fine: C
Suspension: C
(63)
Section 560.209(1), F.S.
Failure to maintain at all times net worth of at least $100,000 plus and additional $10,000 for each location up to $2 million. Note: Suspension will be ordered until adequate net worth has been obtained and accepted by the Office.
Fine: B
Suspension: B
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(64)
Section 560.209(2), F.S.
Failure to obtain an annual financial audit report and submit it to the Office within 120 days after the end of the licensee’s fiscal year end.
Fine: B
Suspension: B
Revocation
Fine: B
Suspension: B
Revocation
Fine: C
Suspension: C
Revocation
(65)
Section 560.209(3)(a)-(b), F.S.
Failure to provide and pledge to the Office a surety bond not less than $50,000 or more than $2 million.
Fine: C
Revocation
N/A
N/A
(66)
Section 560.209(3)(c), F.S.
Canceling a surety bond without written notice to the Office by registered mail or canceling a bond within 30 days after receipt by the Office of the written notice. Note: Suspension will be ordered until adequate surety device has been obtained and accepted by the Office.
Fine: C
Suspension: C
Fine: C
Suspension: C
Fine: C
Suspension: C
(67)
Section 560.209(3)(e), F.S.
Failure to furnish a new or additional surety bond so that the total or aggregate principal sum of the bond equals the required bond under Section 560.209(3)(e), F.S.
Fine: C
Suspension: C
Fine: C
Suspension: C
Fine: C
Suspension: C
(68)
Section 560.209(4)(a)-(b), F.S.
Failure to deposit collateral cash, securities, or alternative security devices as provided by Rule 69V-560.402, F.A.C., in at least the amount required by Form OFR-560-07.
Fine: C
Suspension: C
Fine: C
Suspension: C
Fine: C
Suspension: C
(69)
Section 560.209(4)(c), F.S.
Failure to pledge collateral cash, securities, or alternative security devices on Form OFR-560-05, which is incorporated by reference in Rule 69V-560.1012, F.A.C., or to maintain such collateral in an insured financial institution as set forth in Rule 69V-560.402, F.A.C.
Fine: C
Suspension: C
Fine: C
Suspension: C
Fine: C
Suspension: C
(70)
Section 560.210(1), F.S.
Failure to possess, at all times, permissible investments with an aggregate market value of at least the aggregate face amount of all outstanding money transmissions and payment instruments issued or sold by the licensee or authorized vendor in the United States.
Fine: B
Fine: B
Suspension: B
Fine: C
Revocation
(71)
Section 560.211(1), F.S.
Failure to maintain all records required to be kept by Section 560.211, F.S., for 5 years.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(72)
Section 560.211(1)(a), F.S.
Failure to maintain a daily record of payment instruments sold and money transmitted.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(73)
Section 560.211(1)(b), F.S.
Failure to maintain a general ledger containing all asset, liability, capital, income, and expense accounts, which must be posted at least monthly.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(74)
Section 560.211(1)(c), F.S.
Failure to maintain daily settlement records received from authorized vendors.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(75)
Section 560.211(1)(d), F.S.
Failure to maintain monthly financial institution statements and reconciliation records.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(76)
Section 560.211(1)(e), F.S.
Failure to maintain records of outstanding payment instruments and money transmitted.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(77)
Section 560.211(1)(f), F.S.
Failure to maintain records of each payment instrument paid and money transmission delivered.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(78)
Section 560.211(1)(g), F.S.
Failure to maintain a list of the names and addresses of all of the licensee’s authorized vendors.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(79)
Section 560.211(1)(h), F.S.
Failure to maintain records that document the establishment, monitoring, and termination of relationships with authorized vendors and foreign affiliates.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(80)
Section 560.211(1)(i), F.S.
Failure to maintain any records, as prescribed by rule, designed to detect and prevent money laundering as set forth in Rules 69V-560.608, 69V-560.609, 69V-560.610, 69V-560.702, 69V-560.703, and 69V-560.706, F.A.C.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(81)
Section 560.213, F.S.
Failure of each payment instrument sold or issued by a licensee, directly or through its authorized vendor, to bear the name of the licensee.
Fine: B
Suspension: B
Fine: B
Suspension: B
Fine: C
Revocation
(82)
Section 560.303(3), F.S.
Charging fees in excess of those provided by Section 560.309, F.S., by a person exempt from licensure under Chapter 560 Part III, F.S.
Fine: A
Restitution
Fine: B
Restitution
Suspension: B
Fine: C
Revocation
(83)
Section 560.309(1), F.S.
Failure to transact business under Chapter 560, Part III, F.S. under the legal name under which the person is licensed.
Fine: B
Fine: B
Suspension: B
Fine: C
Revocation
(84)
Section 560.309(2), F.S.
Failure to endorse a payment instrument that is accepted or cashed by the licensee using the legal name under which the licensee is licensed.
Fine: B
Suspension: B
Fine: C
Revocation
N/A
(85)
Section 560.309(3), F.S.
Failure to deposit payment instruments into a commercial account at a federally insured financial institution or sell payment instruments within 5 business days after the acceptance of the payment instrument.
Fine: B
Fine: B
Suspension: B
Fine: C
Revocation
(86)
Section 560.309(4), F.S.
Accepting or cashing multiple payment instruments from a person who is not the original payee, unless the person is licensed to cash payment instruments pursuant to Chapter 560, Part III, F.S., and all payment instruments accepted are endorsed with the legal name of the person.
Fine: B
Suspension: B
Fine: C
Revocation
N/A
(87)
Section 560.309(5), F.S.
Failure to report all suspicious activity to the office in accordance with the criteria set forth in 31 C.F.R. s. 103.20.
Fine: B
Fine: B
Suspension: B
Fine: C
Revocation
(88)
Section 560.309(6), F.S.
Failure to equip each location of a licensee where checks are cashed with a security camera system that is capable of recording and retrieving an image in order to assist in identifying and apprehending an offender unless the licensee has installed a bulletproof or bullet-resistant partition or enclosure in the area where checks are cashed.
Fine: B
Fine: B
Suspension: B
Fine: C
Revocation
(89)
Section 560.309(7), F.S.
Failure to post a notice listing the charges for cashing payment instruments.
Fine: A
Fine: B
Suspension: B
Fine: C
Revocation
(90)
Section 560.309(8)(a), F.S.
Charged fees, except otherwise provided by Section 560.309, F.S., and exclusive of the direct costs of verification in excess of 5 percent of the face amount of the payment instrument, or $5, whichever is greater.
Fine: A
Restitution
Fine: B
Restitution
Suspension: B
Fine: C
Restitution
Revocation
(91)
Section 560.309(8)(b), F.S.
Charged fees, except otherwise provided by Section 560.309, F.S., and exclusive of the direct costs of verification in excess of 3 percent of the face amount of the payment instrument, or $5, whichever is greater for a payment instrument that is any kind of state public assistance or federal social security benefit payable to the bearer of the payment instrument.
Fine: A
Restitution
Fine: B
Restitution
Suspension: B
Fine: C
Restitution
Revocation
(92)
Section 560.309(8)(c), F.S.
Charged fees, except otherwise provided by Section 560.309, F.S., and exclusive of the direct costs of verification in excess of 10 percent of the face amount for personal checks or money orders, or $5, whichever is greater.
Fine: C
Restitution
Fine: C
Restitution
Suspension: C
Fine: C
Restitution
Revocation
(93)
Section 560.309(9), F.S.
Assessed the cost of collections, other than fees for insufficient funds provided by law, without judgment from a court of competent jurisdiction.
Fine: A
Restitution
Fine: B
Restitution
Suspension: B
Fine: C
Restitution
Revocation
(94)
Section 560.309(10), F.S.
Failed to comply with the provisions of Section 68.065, F.S. and failed to comply with the prohibitions against harassment or abuse, false or misleading representations, and unfair practices in the Fair Debt Collections Practices Act, U.S.C. ss. 1692d, 1692d, 1962e, 1962f.
Fine: B
Suspension: B
Fine: C
Suspension: C
Fine: C
Revocation
(95)
Section 560.310(1)(a), F.S.
Failed to maintain customer files on all customers who cash corporate or third-party payment instruments exceeding $1,000, as required by paragraph 69V-560.704(4)(d), F.A.C.
Fine: B
Suspension: B
Fine: C
Suspension: C
Fine: C
Revocation
(96)
Section 560.310(1)(b)1., F.S.
Failed to maintain a copy of the personal identification as used as identification as presented by the customer for a payment instrument accepted having a face value of $1,000 or more.
Fine: B
Suspension: B
Fine: C
Suspension: C
Fine: C
Revocation
(97)
Section 560.310(1)(b)2., F.S.
Failed to maintain a thumbprint of the customer, taken by the licensee, for a payment instrument accepted having a face value of $1,000 or more.
Fine: B
Suspension: B
Fine: C
Suspension: B
Fine: C
Revocation
(98)
Section 560.310(1)(c), F.S.
Failed to maintain an electronic payment instrument log which reports aggregate payment instruments whose total cashed is greater than $1,000.
Fine: B
Suspension: B
Fine: C
Suspension: B
Fine: C
Revocation
(99)
Section 460.404(1), F.S.
Failed to document each deferred presentment transaction in a written agreement signed by the deferred presentment provider and the drawer.
Fine: B
Fine: C
Suspension: C
Fine: C
Revocation
(100)
Section 560.404(2), F.S.
Each deferred presentment transaction agreement failed to be executed on the day the deferred presentment provider furnishes currency or a payment instrument to the drawer.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(101)
Section 560.404(3)(a), F.S.
Each deferred presentment transaction agreement failed to contain the name or trade name, address, and telephone number of the deferred presentment provider and the name and title of the person who signs the agreement on behalf of the provider.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(102)
Section 560.404(3)(b), F.S.
Each deferred presentment transaction agreement failed to contain the date the deferred presentment transaction was made.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(103)
Section 560.404(3)(c), F.S.
Each deferred presentment agreement failed to contain the amount of the drawer’s check.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(104)
Section 560.404(3)(d), F.S.
Each deferred presentment agreement failed to contain the length of the deferment period.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(105)
Section 560.404(3)(e), F.S.
Each deferred presentment agreement failed to contain the last day of the deferment period.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(106)
Section 560.404(3)(f), F.S.
Each deferred presentment agreement failed to contain the address and telephone number of the office.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(107)
Section 560.404(3)(g), F.S.
Each deferred presentment agreement failed to contain a clear description of the drawer’s payment obligations under the deferred presentment transaction.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(108)
Section 560.404(3)(h), F.S.
Each deferred presentment agreement failed to contain the transaction number assigned by the office’s database.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(109)
Section 560.404(4), F.S.
Failed to furnish a copy of the deferred presentment transaction agreement to the drawer.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(110)
Section 560.404(5), F.S.
Accepting a check for a deferred presentment transaction where the face amount of the check taken exceeds $500 exclusive of the fees allowed under Part IV of Chapter 560, F.S.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(111)
Section 560.404(6), F.S.
Charging fees that exceed 10 percent of the currency or payment instrument provided for a deferred presentment transaction.
Fine: A
Restitution
Fine: B
Restitution
Suspension: B
Fine: C
Restitution
Revocation
(112)
Section 560.404(7), F.S.
Collecting the fees authorized for a deferred presentment transaction before the drawer’s check is presented or redeemed.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(113)
Section 560.404(8), F.S.
Accepting a deferred presentment transaction for a term longer than 31 days or less than 7 days.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(114)
Section 560.404(9), F.S.
Requiring a drawer to provide additional security or guaranty for a deferred presentment transaction.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(115)
Section 560.404(10)(a), F.S.
Including a hold harmless clause in a deferred presentment agreement.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: B
(116)
Section 560.404(10)(b), F.S.
Including a confession of judgment clause in a deferred presentment agreement.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(117)
Section 560.404(10)(c), F.S.
Including an assignment of or order for a payment of wages or other compensation for services in a deferred presentment agreement.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(118)
Section 560.404(10)(d), F.S.
Including a provision in which the drawer agrees not to assert any claim or defense arising out of the agreement in a deferred presentment agreement.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(119)
Section 560.404(10)(e), F.S.
Including a waiver of any provision of Chapter 560, Part IV, F.S., in a deferred presentment agreement.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(120)
Section 560.404(11), F.S.
A deferred presentment provider shall immediately provide the drawer with the full amount of any check to be held, less only the fee allowed by Section 560.404, F.S.
Fine: B
Fine: C
Suspension: C
Fine: C
Revocation
(121)
Section 560.404(12), F.S.
Holding a deferred presentment agreement or a drawer’s check that is altered, the date is deleted, or fails to bear the same date for a deferred presentment transaction.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(122)
Section 560.404(13), F.S.
Failure to ensure that each deferred presentment transaction complies with the disclosure requirements of 12 C.F.R., part 226, relating to the federal Truth-in-Lending Act, and Regulation Z of the Board of Governors of the Federal Reserve Board.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(123)
Section 560.404(14), F.S.
Accepting or holding an undated check or a check dated on a date other than the date on which the deferred presentment provider agreed to hold the check and signed the deferred presentment transaction agreement.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(124)
Section 560.404(15), F.S.
Failure to hold the drawer’s check for the agreed number of days, unless the drawer chose to redeem the check before the presentment date.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(125)
Section 560.404(16), F.S.
Charging an additional fee for issuing or cashing a deferred presentment provider’s payment instrument, if licensed under Part II of Chapter 560, F.S.
Fine: B
Restitution
Fine: B
Restitution
Suspension: B
Fine: B
Restitution
Revocation
(126)
Section 560.404(17), F.S.
Requiring a drawer to accept a payment instrument issued by the licensee in lieu of currency in a deferred presentment transaction.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(127)
Section 560.404(18), F.S.
Engaging in the rollover of a deferred presentment agreement. Redeeming, extending, or otherwise consolidating a deferred presentment agreement with the proceeds of another deferred presentment transaction made by the same deferred presentment provider or an affiliate.
Fine: B
Restitution of any fees received for each subsequent rollover
Fine: B
Restitution of any fees received for each subsequent rollover Suspension: B
Fine: C
Restitution of any fees received for each subsequent rollover Revocation
(128)
Section 560.404(19), F.S.
Entering into a deferred presentment transaction with a drawer who has an outstanding deferred presentment transaction with that provider or with any other deferred presentment provider, or with a person whose previous deferred presentment transaction with that provider or with any other provider has been terminated for less than 24 hours.
Fine: B
Restitution of any fees received for each subsequent rollover
Fine: B
Restitution of any fees received for each subsequent rollover Suspension: B
Fine: C
Restitution of any fees received for each subsequent rollover Revocation
(129)
Section 560.404(19)(a), F.S.
Failure to verify whether the deferred presentment provider or an affiliate has an outstanding deferred presentment transaction with a particular person or has terminated a transaction with that person within the previous 24 hours.
Fine: B
Restitution of any fees received for each subsequent rollover
Fine: B
Restitution of any fees received for each subsequent rollover Suspension: B
Fine: C
Restitution of any fees received for each subsequent rollover Revocation
(130)
Section 560.404(19)(b), F.S.
Failure to access the office’s database and verify whether any other deferred presentment provider has an outstanding deferred presentment transaction with a particular person or has terminated a transaction with that person within the previous 24 hours.
Fine: B
Restitution of any fees received for each subsequent rollover
Fine: B
Restitution of any fees received for each subsequent rollover Suspension: B
Fine: C
Restitution of any fees received for each subsequent rollover Revocation
(131)
Section 560.404(20), F.S.
Failure to provide the notice defined in Section 560.404(20), F.S., in a prominent place on each deferred presentment agreement in at least 14-point type in substantially the form provided by Section 560.404(20), F.S., and must obtain the signature of the drawer where indicated.
Fine: A
Fine: B
Fine: C
Suspension: C
(132)
Section 560.404(21), F.S.
Presenting a drawer’s check if the drawer informs the provider in person that the drawer cannot redeem or pay in full in cash the amount due and owing the deferred presentment provider or charging an additional fee or penalty by virtue of any misrepresentation made by the drawer as to the sufficiency of funds in the drawer’s account.
Fine: A
Restitution
Fine: B
Restitution
Suspension: B
Fine: C
Restitution
Revocation
(133)
Section 560.404(22), F.S.
Failure to provide a grace period extending the term of an agreement for an additional 60 days after the original termination date, without any additional charge if by the end of the deferment period, the drawer informs the deferred presentment provider in person that the drawer cannot redeem or pay in full in cash the amount due and owing.
Fine: B
Restitution
Fine: C
Restitution
Suspension: C
Fine: C
Restitution
Revocation
(134)
Section 560.404(22)(a), F.S.
Failure to comply with and adhere to, including depositing the drawer’s check before the end of the 60-day grace period, a repayment plan that a drawer agrees to comply with and adhere to, which was approved by a credit counseling agency. Discouraging a drawer from using the 60-day grace period.
Fine: B
Restitution
Fine: C
Restitution
Suspension: C
Fine: C
Restitution
Revocation
(135)
Section 560.404(22)(b)1., F.S.
Failure to provide verbal notice of the availability of the 60-day grace period consistent with the written notice in Section 560.404(20), F.S.
Fine: A
Fine: B
Fine: C
Suspension: C
(136)
Section 560.404(22)(b)2., F.S.
Failure to provide a drawer a list of approved consumer credit counseling agencies prepared by the office.
Fine: A
Fine: B
Fine: C
Suspension: C
(137)
Section 560.404(22)(b)3., F.S.
Failure to provide a drawer the written notice in Section 560.404(22)(b)3., F.S., in at least 14-point type in substantially the form in the section detailing the drawer’s rights under the 60-day grace period.
Fine: A
Fine: B
Fine: C
Suspension: C
(138)
Section 560.404(22)(c), F.S.
Failure to pay one-half of the drawer’s fee for a deferred presentment agreement to the consumer credit counseling agency if a drawer completes an approved payment plan.
Fine: A
Fine: B
Fine: C
Suspension: C
(139)
Section 560.404(23), F.S.
Failure to submit data, including but not limited to the drawer’s name, social security number or employment authorization alien number, address, driver's license number, amount of the transaction, date of transaction, the date that the transaction is closed, and such additional information as is required by rule before entering into each deferred presentment transaction in order to verify whether any deferred presentment transactions are outstanding for a particular person.
Fine: A
Fine: B
Suspension: B
Fine: C
Suspension: C
(140)
Section 560.404(24), F.S.
Accepting more than one check or authorization to initiate more than one automated clearinghouse transaction to collect on a deferred presentment transaction for a single deferred presentment transaction.
Fine: A
Fine: B
Fine: C
Suspension: C
(141)
Section 560.405(1), F.S.
Presenting a drawer’s check before the end of the deferment period, as reflected in the deferred presentment transaction agreement.
Fine: A
Fine: B
Fine: C
Suspension: C
(142)
Section 560.405(2), F.S.
Failure to endorse a drawer’s check with the name under which the deferred presentment provider is doing business before the deferred presentment provider presents the drawer’s check.
Fine: A
Fine: B
Fine: C
Suspension: C
(143)
Section 560.405(3), F.S.
Failure to return a drawer’s check, upon redemption, and provide a signed, dated receipt showing that the drawer’s check has been redeemed.
Fine: A
Fine: B
Fine: C
Suspension: C
(144)
Section 560.406(1), F.S.
Sending or collecting on collection notices containing references to treble damages and criminal prosecution used for the collection of worthless checks in a deferred presentment transaction.
Fine: A
Fine: B
Suspension: B
Fine: C
Revocation
(145)
Section 560.406(2), F.S.
Failure to comply with the prohibitions against harassment or abuse, false or misleading representations, and unfair practices that are contained in the Fair Debt Collections Practices Act, 15 U.S.C. ss. 1692d, 1692e, 1692f.
Fine: B
Suspension: B
Fine: C
Suspension: B
Fine: C
Revocation
(146)
Section 560.406(3), F.S.
Assessing the cost of collection, other than charges for insufficient funds as allowed by law, without a judgment from a court of competent jurisdiction for a deferred presentment transaction.
Fine: A
Restitution
Fine: B
Restitution
Suspension: B
Fine: C
Restitution
Revocation
(1) Consistent with the guidelines contained in the Disciplinary Guidelines for Money Services Businesses, the Office may issue orders to revoke or suspend a license; orders to impose an administrative fine; orders of prohibition including ceasing and desisting, and injunction; orders of appointment; orders of removal; orders denying applications; and/or Notices of Non-compliance.
(147) In accordance with this rule:
(a) Depending on the severity and repetition of specific violations, the Office may impose an administrative fine, suspension of a license, or revocation of a license or any combination thereof;
(b) The Office may impose a cease and desist order in conjunction with and in addition to any of the designated sanctions set forth in this rule when appropriate under the circumstances;
(c) Notwithstanding this rule, the Office may, when appropriate, enter orders of removal or prohibition or orders denying applications, and may seek the entry of an injunction and appointment of a receiver by a court of competent jurisdiction; and
(d) The Office will consider the licensee’s disciplinary history for the past five years in determining an appropriate penalty, and may impose a more severe penalty when the disciplinary history includes past violations.
(2)(148) In accordance with Sections 560.1141(2), (3), F.S., the Office shall consider the number of records sampled compared to the number of violations to determine the violation rate (percentage). The violation rate shall be applied to the fine range to determine the amount of the fine within the range. For example if the violation rate is fifty percent (50%), then the fine amount will be the medium of the fine range. If the violation relates to a single violation, the fine amount will be the minimum of the fine range. following circumstances in determining an appropriate penalty within the range of penalties prescribed in this rule for each violation as based upon the citation number.
(3) The Office also shall consider the following these circumstances in determining a penalty that deviates from the range of penalties prescribed for each violation and citation number as a result of such circumstances:
(a)The Office will consider the money services business’ disciplinary history with the Office for the past 5 years in determining an appropriate penalty, and may impose a more severe penalty when the disciplinary history includes past violations.
(b) The following circumstances are considered mitigating factors:
1. If the violation rate is less than 5% when compared to the overall sample size reviewed;
2. No prior administrative actions by the Office against the money services business or its affiliated party within the past 10 years;
3. If the money services business detected and voluntarily instituted corrective responses or measures to avoid the recurrence of a violation prior to detection and intervention by the Office;
4. If the violation is attributable to a single officer, director, responsible person, employee, or authorized vendor (other than the compliance officer), and if the money services business removed or otherwise disciplined the individual prior to detection and intervention by the Office;
5. If the money services business is responsive to the Office’s requests or inquiries or made no attempt to impede or delay the Office in its examination or investigation of the underlying misconduct;
6. Other relevant, case-specific circumstances.
(c). The following circumstances are considered aggravating factors:
1. If the violation rate is more than 95% when compared to the overall sample size reviewed (sample size must be equal to or greater than 25 transactions and cover a date range of at least 6 months);
2. The potential for harm to the customers or the public is significant;
3. Prior administrative action by the Office against the money services business or its affiliated party within the past 5 years;
4. If the money services business’ violation was the result of willful misconduct or recklessness;
5. If the violation is a result of willful misconduct or recklessness attributable to the compliance officer;
6. The money services business attempted to conceal the violation or mislead or deceive the Office;
7. Other relevant, case-specific circumstances.
(a) Whether the violation rate is less than 5% when compared to the overall sample size reviewed;
(b) The degree of harm to the customers or the public;
(c) The disciplinary history of the licensee;
(d) Whether the licensee detected and voluntarily instituted corrective responses or measures to avoid the recurrence of a violation prior to detection and intervention by the Office;
(e) Whether the licensee’s violation was the result of willful misconduct or recklessness;
(f) Whether at the time of the violation, the licensee had developed and implemented reasonable supervisory, operational or technical procedures, or controls to avoid the violation;
(g) Where the violation is attributable to an individual officer, director, responsible person, or authorized vendor, whether the licensee removed or otherwise disciplined the individual prior to detection and intervention by the Office;
(h) Whether the licensee attempted to conceal the violation or mislead or deceive the Office;
(i) The length of time over which the licensee engaged in the violations;
(j) Whether the licensee engaged in numerous violations or a pattern of misconduct;
(k) The number, size and character of the transactions in question;
(l) Whether the licensee provided substantial assistance to the Office in its examination or investigation of the underlying misconduct;
(m) Other relevant, case-specific circumstances.
(3)(149)The list of violations cited in this rule is intended to be comprehensive, but the omission of a violation from the list does not preclude the Office from taking any action authorized by Section 560.114, F.S.
(4)(150) The ranges for administrative fines imposed by this rule are $1,000 – $3,500 for an “A” level fine; $3,500 – $7,500 for a “B” level fine; and $7,500 – $10,000 for a “C” level fine.
(5)(151) The ranges for suspensions imposed by this rule 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, 560.1105, 560.111, 560.114, 560.1141, 560.118, 560.123, 560.1235, 560.125, 560.126, 560.128, 560.204, 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,__________.
69V-560.1012 Adoption of Forms.
(1) The following forms are incorporated by reference and readopted by this rule for the purposes of Rules 69V-560.102-.913, F.A.C.:
(a) Application for Licensure as a Money Services Business, Form OFR-560-01, effective 10-18-09, amended 1-2-14, http://www.flrules.org/Gateway/reference.asp?No=Ref-01231.
(b) Location Notification Form, Form OFR-560-02, effective 1-13-09.
(c) Declaration of Intent to Engage in Deferred Presentment Transactions, Form OFR-560-03, effective 1-13-09.
(d) Money Services Business Quarterly Report Form, Form OFR-560-04, effective 1-13-09.
(e) Pledge Agreement, Form OFR-560-05, effective 1-13-09.
(f) Money Services Business Surety Bond Form, Form OFR-560-06, effective 1-13-09.
(g) Security Device Calculation Form, Form OFR-560-07, effective 10-18-09.
(h) Request for Exemption from Electronic Filing Requirements, Form OFR-560-08, effective 3/16/2011, available at http://www.flrules.org/Gateway/reference.asp?No=Ref-00145.
(i) BSA Currency Transaction Report, OMB No. 1506-0064, Version Number 1.2 Currency Transaction Report, FinCEN Form 112 104, effective 05-16-2013, 1-13-09, and available at www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.
(j) BSA Suspicious Activity Report, OMB No. 1506-0065, Version Number 1.1 Suspicious Activity Report by Money Services Business, FinCEN Form 111 109, effective 03-22-2012, and available at www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.
(k) Report of International Transportation of Currency or Monetary Instruments, FinCEN Form 105, (March 2011), OMB No. 1506-0014, effective 03-01-2011 1-13-09, and available at www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.
(l) Disciplinary Guidelines for Money Services Businesses, incorporated by reference and adopted by this rule, effective XX/XX/XXXX, available at www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX
(2) All forms adopted by 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.
Rulemaking Authority 215.405, 560.105, 560.118, 560.126, 560.141, 560.2085, 560.209, 560.403 FS. Law Implemented 560.118, 560.1401560.140, 560.141, 560.126, 560.205, 560.2085, 560.209, 560.403, 943.053 FS. History–New 1-13-09, Amended 10-18-09, 3-16-11, 5-29-12, 1-2-14,___________.
69V-560.1013 Electronic Filing of Forms and Fees.
(1) For purposes of this rule, “REAL System” means the Office of Financial Regulation’s Regulatory Enforcement and Licensing System, which is accessible through the Office’s website at www.flofr.com.
(2) All forms adopted under paragraphs 69V-560.1012(1)(a) through (1)(d)(g) and (1)(g), F.A.C., must be filed electronically with the Office through the REAL system.
(3) All fees required to be filed with the Office under Chapter 69V-560, F.A.C., must be paid electronically through the REAL System.
(4) Any person may request an exemption from the electronic filing requirements of this rule by submitting Form OFR-560-08, Request for Exemption from Electronic Filing Requirements, to: Office of Financial Regulation, Division of Consumer Finance, Bureau of Regulatory Review, 200 E. Gaines Street, Tallahassee, Florida 32399-0351 0376. The Office of Financial Regulation will provide any person granted an exemption under this subsection with instructions on how to file forms and fees in paper format. Form OFR-560-08 is incorporated by reference in Rule 69V-560.1012, F.A.C.
Rulemaking Authority 560.105 FS. Law Implemented 560.105 FS. History–New 1-13-09, Amended 3-16-11,___________.
69V-560.102 Application or Appointment Procedures and Requirements.
(1) Applications for money service business licenses must be made in accordance with the provisions of Sections 560.1401 140, 560.141, and 560.143, F.S. Further, application for a money services business license involving payment instrument sales or money transmission must also comply with Section 560.205, F.S. The application form for applying hereunder is Application for Licensure as a Money Services Business, OFR-560-01, which is incorporated by reference in Rule 69V-560.1012, F.A.C.
(2) Each person listed in question 5G of the Application for Licensure as a Money Services Business, OFR-560-01, must submit fingerprints through a live-scan vendor approved by the Florida Department of Law Enforcement. A list of approved vendors is published on the Florida Department of Law Enforcement’s website (http://www.fdle.state.fl.us/Content/home.aspx). Such fingerprints will be submitted to the Florida Department of Law Enforcement for a state criminal background check and the Federal Bureau of Investigation for a Federal criminal background check. The cost of the fingerprinting process shall be borne by the applicant and paid directly to the live-scan vendor.
(3) Request for Additional Information. Any request for additional information will be made by the Office within thirty (30) days after receipt of the application. The additional information must be received by the Office within forty-five (45) days from the date of the request. Failure to provide all information within forty-five (45) days from the date of the request will result in the Office denying the application.
(4) Withdrawal of Application. An application may be withdrawn if the applicant submits a request through the REAL system (https://real.flofr.com/) for same before the application is approved or denied.
(5) Amendments to Pending Applications. If the information contained in any application form for licensure as a money services business, or in any amendment thereto, becomes inaccurate for any reason, the applicant 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 Rule 69V-560.1012, F.A.C. An applicant may amend the application as to those factors generally within the control or selection of the applicant once, as a matter of course, at any time within thirty (30) days from receipt of the application by the Office. Otherwise, the application may be amended only with prior written permission from the Office. The Office will grant permission to amend the application, unless the amendment constitutes a material change to the application. Requests to make changes which are material to the application will be deemed by the Office to be grounds for denial, and a new application, accompanied by the appropriate filing fee, will be required. Material changes include:
(a) Changes in net worth;
(b) 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;
(c) Any change relating to the bond or collateral security item;
(d) A change to a response to the disclosure questions listed in section 6 on Form OFR-560-01; and
(e) A change to disclosure questions listed in section 3 on the biographical summary on Form OFR-560-01.
Rulemaking Authority 215.405, 560.105, 560.118, 560.209, 560.403 FS. Law Implemented 215.405, 560.118, 560.140, 560.126, 560.141, 560.143, 560.1235, 560.204, 560.205, 560.209, 560.303, 560.307, 560.403, 943.053 FS. History–New 9-24-97, Amended 11-4-01, 12-11-03, Formerly 3C-560.102, Amended 7-15-07, 6-17-08, 12-25-08, 1-13-09, 1-2-14,___________.
69V-560.103 Definitions.
For the purposes of this chapter, the following definitions shall apply:
(1) “Financial Statements” shall be defined as those reports, schedules and statements, prepared in accordance with United States Generally Accepted Accounting Principles.
(1)(2) “FinCEN” means the Financial Crimes Enforcement Network of the United States Treasury Department.
(3) “Holiday” means such days as are designated by Section 110.117, F.S.
(4) “Quarter” and “quarterly” mean March 31, June 30, September 30, and December 31 of each calendar year.
Rulemaking Authority 560.105 FS. Law Implemented 560.103, 560.118, 560.1401, 560.141, 560.205 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.103, Amended 9-14-04, 7-15-07, 1-13-09,_____________.
69V-560.302 Renewal Fees, Deadlines, and Requirements.
(1) Chapter 560, F.S., licenses must be renewed in accordance with the provisions of Section 560.142, F.S.
(2) Licensees initially approved on or after October 1, 2013, shall submit a nonrefundable fee of $12.00 for each person currently listed in the records of the Office in question 5G of the Application for Licensure as a Money Services Business, OFR-560-01, which is incorporated by reference in Rule 69V-560.1012, F.A.C., to cover the costs of fingerprint retention. Failure to remit renewal fees as prescribed in Section 560.143(2) and 560.141(1)(c)4 560.141(2), F.S., and fingerprint retention fees as required in this paragraph by the license expiration date will automatically result in the license becoming expired. An expired license may be reinstated within 60 days following expiration pursuant to Section 560.142, F.S.
(3)(a) Licensees initially approved before October 1, 2013, shall submit fingerprints for each person currently listed in the records of the Office in question 5G of the Application for Licensure as a Money Services Business, OFR-560-01, for live-scan processing pursuant to Section 560.141(1)(c)7., F.S. Such fingerprints must be submitted before renewing a license that is scheduled to expire between April 30, 2014, and December 31, 2015. The Office shall screen the background results to determine if the licensee meets licensure requirements. Any request for additional information must be received by the Office within forty-five (45) days from the date of the request. For purposes of this paragraph, each of the applicant’s control persons required to submit fingerprints shall submit such fingerprints to a live-scan vendor approved by the Florida Department of Law Enforcement and published on the Florida Department of Law Enforcement’s website (http://www.fdle.state.fl.us/Content/Criminal-History/documents/ApplicantLivescanService-ProvidersVendors.aspx http://www.fdle.state.fl.us/Content/getdoc/941d4e90-131a-45ef-8af3-3c9d4efefd8e/Livescan-Service-Providers-and-Device-Vendors.aspx) for submission to the Florida Department of Law Enforcement and the Federal Bureau of Investigation for a state criminal background check and a Federal criminal background check. The cost of the fingerprinting process shall be borne by the applicant and paid directly to the live scan vendor.
(b) Licenses renewed pursuant to paragraph (a) shall submit a nonrefundable fee of $12.00 for each person currently listed in the records of the Office in question 5G of the Application for Licensure as a Money Services Business, OFR-560-01, to cover the costs of fingerprint retention. This requirement applies to licensees renewing licenses that expire on or after April 1, 2016 that were approved before October 1, 2013. Failure to remit renewal fees as prescribed in Section 560.141(1)(c)(4) and 560.143(2) 560.141(4), F.S., and fingerprint retention fees as required in this paragraph by the license expiration date will automatically result in the license becoming expired. An expired license may be reinstated within 60 days following expiration pursuant to Section 560.142(4), F.S.
(4) If any date established in accordance with Section 560.142, F.S., falls on a Saturday, Sunday, or legal holiday pursuant to Section 110.117, F.S., the required renewal fees and any applicable late fees must be received by the Office by the close of business on the next business day.
Rulemaking Authority 560.105 FS. Law Implemented 560.142, 560.403, 560.141, 560.143 FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.302, Amended 7-15-07, 1-13-09, 1-2-14,___________.
69V-560.504 Reimbursement Rates for Examinations Conducted by the Office.
(1) This rule establishes rates for reimbursement to the Office for examination and per diem and travel expenses for examinations of licensees conducted by Office examiners under Sections 560.1091 and 560.1092, F.S.
(2) Fees for examiner and management time shall be calculated based on the direct compensation of the examiner conducting the examination. Rates will be assessed by examiner classification and shall be charged at the following rates a rate of $28.00 per hour:
(a) Financial Examiner/Analyst I$28 per hour.
(b) Financial Examiner Analyst II$30 per hour.
(c) Financial Specialist$34 per hour.
(d) Financial Control Analyst$35 per hour.
(e) Financial Examiner Analyst Supervisor$37 per hour.
(f) Area Financial Manager and above$42 per hour.
(3) Examiner per diem and other travel expense shall be charged in accordance with Section 112.061, F.S.
(4) Fees for administrative support staff providing clerical or research work in connection with the examination will be calculated at the rate of $12.00 per hour.
(5) The Office will invoice licensees for the costs of the examination and licensees will have 30 days from the date of the invoice to remit payment for invoiced expenses to the Office.
Rulemaking Authority 560.105, 560.1091, 560.1092 FS. Law Implemented 560.1091, 560.1092, 560.109 FS. History–New 1-13-09,__________.
69V-560.505 Reimbursement Rates for Examinations Conducted by a Third Party.
(1) This rule establishes rates for reimbursement to the Office for examination and per diem and travel expenses for examinations of licensees conducted by third party contractors under Sections 560.1091 and 560.1092, F.S. Rates will be the direct charges billed to the Office by the third party contractor. Such rates will be established by contract with the Office.
(2) The Office shall select third party contractors from the list of persons or firms who are qualified by the Department of Management Services to render “Financial and Performance Audit Services” under State of Florida Contract #973-001-06-1, which is hereby incorporated by reference.
(3) Licensees will be charged for the third party contractor’s actual and reasonable per diem and other travel costs. Per diem and other travel costs shall not, without prior written approval of the Office, exceed:
(a) Fifty-eight and one-half cents per mile.
(b) Maximum per diem rates for domestic travel approved by the United States General Services Administration for Florida for Fiscal Year 20142009 as set forth in “Domestic Per Diem Rates”, which may be found at www.gsa.gov/perdiem and is hereby incorporated by reference.
(4) Licensees will also be billed for administrative support and research directly related to the examination. Such work will be performed by administrative support staff of the Office and shall be charged at a rate of $12 per hour.
(5) The Office will invoice licensees for the costs of the examination and licensees will have 30 days after the date of the invoice to remit payment for invoiced expenses to the Office.
Rulemaking Authority 560.105, 560.1091, 560.1092 FS. Law Implemented 560.1091, 560.1092, 560.109 FS. History–New 1-13-09,_______________.
69V-560.602 Quarterly Reports.
Every money services business licensed pursuant to Chapter 560, F.S., shall submit a complete and accurate quarterly report to the Office by filing a completed Form OFR-560-04, Money Services Business Quarterly Report Form, which is incorporated by reference in Rule 69V-560.1012, F.A.C. A completed quarterly report form shall be received by the Office no later than forty-five (45) days after the conclusion of each calendar quarter. Should the forty-fifth day fall on a Saturday, Sunday or holiday, the reports must be received by the Office no later than the next business day. A report is “past due” if it is received by the Office one or more days beyond the period set forth in this rule.
Rulemaking Authority 560.105, 560.118 FS. Law Implemented 560.118(2) FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.602, Amended 7-15-07, 1-13-09,____________.
69V-560.606 Annual Filing of Financial Audit Reports by Part II Licensees.
(1) Each licensed money transmitter and payment instrument seller shall annually submit financial audit reports to the Office in accordance with Sections 560.209(1) and (2), F.S., for the licensee’s most recent fiscal year.
(2) Annual financial audit reports must be received by the Office within one hundred twenty (120) days after the licensee’s fiscal year end.
(3) A report is “past due” if it is received by the Office one or more days beyond the period defined in subsection (2).
(4) For purposes of adding new locations or authorized vendors, a Part II licensee may rely upon its annual financial audit reports that were received by the Office in a timely manner as required in subsections (1) and (2) of this rule. The Office reserves the right to require additional documentation up to and including the submission of interim financial statements to substantiate the licensee’s net worth.
Rulemaking Authority 560.105, 560.118, 560.205 FS. Law Implemented 560.118, 560.205, 560.209 FS. History–New 11-4-01, Formerly 3C-560.606, Amended 7-15-07, 1-13-09,______________.
69V-560.608 Currency Transaction Report Filings.
BSA Currency Transaction Reports, required by Section 560.123, F.S., must be filed with FinCEN using BSA E-Filing and FinCEN Form 112 as required by 31 U.S.C. s. 5313 104, which is incorporated by reference in Rule 69V-560.1012, F.A.C. Reports filed in this manner shall be deemed to have also been filed with the Office.
Rulemaking Authority 560.105, 560.123 FS. Law Implemented 560.123, 560.1235 FS. History–New 1-13-09,___________.
69V-560.609 Suspicious Activity Report Filings.
(1) Pursuant to Section 560.1235(1), F.S., licensees and authorized vendors must comply with all state and federal laws and rules relating to the detection and prevention of money laundering, including, as applicable, 31 C.F.R. Chapter X s.1022.320 s. 103.20 (2007), relating to reports by money services businesses of suspicious transactions. For purposes of Section 560.1235(1), F.S., the federal law requirement to report suspicious transactions applies to the following money services businesses: payment instrument sellers that sell money orders or traveler’s checks, money transmitters, and foreign currency exchangers. These entities must are required to report suspicious transactions to FinCEN using FinCEN Form 111, which is incorporated by reference in Rule 69V-560.1012, F.A.C., as required by 31 C.F.R. Chapter X s.1022.320, 109 BSA Suspicious Activity Report by Money Service Business, and failure to do so is a violation of Section 560.1235, F.S.
(2) Under federal law, check cashers may, but are not required to, file reports of suspicious transactions; however, pursuant to Section 560.309(5), F.S., check cashers are required to report suspicious activity to the Office office or an appropriate regulator based on the criteria set forth in 31 C.F.R. Chapter X s. 1022.320 103.20 (2007). The Commission designates FinCEN as the appropriate regulator to receive such reports, which shall be submitted to FinCEN on FinCEN Form 111 109, which is incorporated by reference in Rule 69V-560.1012, F.A.C., BSA Suspicious Activity Report by Money Service Business. BSA Suspicious Activity Reports filed with FinCEN shall be deemed to have also been filed with the Office. Failure of a check casher to report suspicious activity to FinCEN is a violation of Section 560.309(5), F.S.
(3) FinCEN Form 111 109, BSA Suspicious Activity Report by Money Service Business is incorporated by reference in Rule 69V-560.1012, F.A.C. Federal regulation 31 C.F.R. 103.20 (2007) Chapter X s. 1022.320 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.
Rulemaking Authority 560.105, 560.309 FS. Law Implemented 560.1235, 560.309 FS. History–New 1-13-09,________.
69V-560.610 Report of International Transportation of Currency or Monetary Instruments.
Pursuant to Section 560.1235, F.S., all money services businesses shall file with FinCEN using a Report of International Transportation of Currency or Monetary Instruments, electronically or in paper form, on FinCEN Form 105, which is incorporated by reference in Rule 69V-560.1012, F.A.C., as required by 31 CFR Chapter X. s. 1010.306 not later than 15 calendars days from the date of the transaction.
Rulemaking Authority 560.105 FS. Law Implemented 560.1235 FS. History–New 1-13-09,_________________.
69V-560.702 Payment Instrument Sellers.
(1) A payment instrument seller shall maintain records of the following information, which must be obtained for each issuance or sale of a payment instrument, regardless of the amount:
(a) The date of purchase;
(b) The serial number(s) or confirmation number of the payment instrument(s) purchased; and
(c) The amount in dollars of each of the instruments purchased.
(2) For all transactions that exceed $3,000, the payment instrument seller shall also obtain and record the information required by 31 C.F.R. Chapter X s. 1010.415 103.29(a)(2), as it existed on September 4, 2008. For purposes of this section multiple payment instruments purchased in one or more transactions on a single day shall be aggregated.
(3) Every payment instrument seller shall maintain a schedule of all outstanding receivables due from authorized vendors to include amounts and numbers of days outstanding. This schedule shall be updated, at a minimum, monthly.
(4) Every payment instrument seller shall develop and implement written policies and procedures to monitor compliance with applicable state and federal law by its authorized vendors. The policies and procedures should include, but are not limited to compliance with the following applicable statutes and regulations:
(a) Chapter 560, F.S.
(b) Anti-money laundering requirements referenced in Section 560.1235(1), F.S.
(c) Office of Foreign Asset Control regulations: 31 C.F.R. Part 500; 31 C.F.R. s. 594.201; 31 C.F.R. s. 594.204; 31 C.F.R. s. 501.603; and 31 C.F.R. s. 501.604, as these regulations existed on September 4, 2008.
(d) Gramm-Leach-Bliley Act regarding protection of personal information: 15 U.S.C. ss. 6801, 6802, and 6803 (Thomson Reuter/West 2008 (current through P.L. 110-316 (excluding P.L. 110-234, 110-246, and 110-315))).
(e) Sections 817.568 and 817.5681, F.S., regarding fraudulent use of personal information and breaches of information security.
(5) Every payment instrument seller shall maintain individual files for each authorized vendor that document the establishment and termination of these relationships. The file shall include the written contract between the payment instrument seller and authorized vendor as required by Section 560.2085, F.S.
(6) Subpoenas, warrants, and other requests from regulatory, law enforcement, or prosecutorial agencies and records relating to training as required by 31 C.F.R. Chapter X s. 1022.210 s. 103.125, as it existed on September 4, 2008, shall be maintained so that they are retrievable as required by Section 560.1105(1), F.S.
(7) Records of all payment instrument sales shall be maintained in an electronic format that is readily retrievable and capable of being exported to most widely available software applications including Microsoft EXCEL.
(8) All federal laws and regulations referenced in this rule are 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.
Rulemaking Authority 560.105, 560.2085 FS. Law Implemented 560.1105(1), 560.1235, 560.2085, 560.211 FS. History–New 9-24-97, Formerly 3C-560.702, Amended 1-13-09,__________________.
69V-560.703 Money Transmitters.
(1) A money transmitter shall maintain records of the following information for all inbound and outbound transmissions, which must be obtained for each money transmission, regardless of the amount:
(a) The name and address of the sender;
(b) A numbered receipt or confirmation number for each transaction;
(c) The address of the location or foreign affiliate where the transaction was conducted;
(d) The name and address of the beneficiary or recipient;
(e) Any instructions or messages relating to the transmission;
(f) The method of payment (e.g., currency, check, credit card, etc.);
(g) Transaction date;
(h) Time of the transaction;
(i) Transaction amount in U.S. Dollars;
(j) Fees charged;
(j) Authorized vendor name; and
(k) Authorized vendor/foreign affiliate code/identifier as assigned by the licensee.
(2) For all transactions that exceed $3,000, the money transmitter shall, in addition to the items in subsection (1), obtain and record:
(a) Social security number, passport number, or alien registration of the sender; the Federal Employer Identification Number for the entity if sender is not a natural person;
(b) Name and account number of recipient’s financial institution, if applicable; and
(c) If the sender is a natural person, sender’s Sender’s photo identification number, type, and state/country of issuance.
(d) Photo Identification of the individual making the transmission on behalf of the sender, if the sender is not a natural person.
(3) Every money transmitter shall maintain a schedule of all outstanding receivables due from authorized vendors to include amounts and numbers of days outstanding. This schedule shall be updated, at a minimum, monthly.
(4) Every money transmitter shall develop and implement written policies and procedures to monitor compliance with applicable state and federal law by its authorized vendors. These policies and procedures should include, but are not limited to compliance with the following applicable statutes and regulations:
(a) Chapter 560, F.S.
(b) Anti-money laundering requirements referenced in Section 560.1235(1), F.S.
(c) Office of Foreign Asset Control regulations: 31 C.F.R. Part 500; 31 C.F.R. s. 594.201; 31 C.F.R. s. 594.204; 31 C.F.R. s. 501.603; and 31 C.F.R. s. 501.604, as these regulations existed on September 4, 2008.
(d) Gramm-Leach-Bliley Act regarding protection of personal information: 15 U.S.C. ss. 6801, 6802, and 6803 (Thomson Reuter/West 2008 (current through P.L. 110-316 (excluding P.L. 110-234, 110-246, and 110-315))).
(e) Sections 817.568 and 817.5681, F.S., regarding fraudulent use of personal information and breaches of information security.
(5) Every money transmitter shall maintain individual files for each authorized vendor/foreign affiliate that documents the establishment and termination of these relationships. The file shall include the written contract between the money transmitter and authorized vendor as required by Section 560.2085, F.S.
(6) Subpoenas, warrants and other requests from regulatory, law enforcement, and prosecutorial agencies, and records related to training as required by 31 C.F.R. s. Chapter X s. 1022.210 103.125, as it existed on September 4, 2008, and shall be maintained so that they are retrievable as required by Section 560.1105(1), F.S.
(7) Records of all money transmissions shall be maintained in an electronic format that is readily retrievable and capable of being exported to most widely available software applications including Microsoft EXCEL.
(8) All federal laws and regulations referenced in this rule are 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.
Rulemaking Authority 560.105 FS. Law Implemented 560.1105(1), 560.211 FS. History–New 9-24-97, Formerly 3C-560.703, Amended 1-13-09,____________.
69V-560.704 Records to Be Maintained by Check Cashers.
(1) For purposes of this rule the term:
(a) “Corporate payment instrument”, as referenced in Section 560.310(2)(a) 560.310(1), F.S., means a payment instrument on which the payee named on the face of the payment instrument is not a natural person.
(b) “Conductor” means a natural person who presents a payment instrument to a check casher for the purpose of receiving currency.
(c) “Customer file” in regard to a “corporate payment instrument” means the corporate entity shown as payee. In regard to “third-party payment instruments”, the term “customer file” means the individual negotiating the payment instrument.
(d) “Dormant customer” shall include any customer who has not transacted business with the licensee within the past 180 days.
(e) “Third-party payment instrument”, as referenced in Section 560.310(1), F.S., means a payment instrument being negotiated by a party other than the payee named on the face of the payment instrument.
(c) The phrase “its own commercial account” as referenced in Section 560.309(3) means a depository account in a federally insured financial institution listing the licensee as an owner of the account. The authorized signatories must have a controlling interest as described in Section 560.127.
(2) Every check casher shall maintain legible records of all payment instruments cashed. The records shall include the following information with respect to each payment instrument accepted by the licensee registrant:
(a) A copy of all payment instruments accepted and endorsed by the licensee to include the face and reverse (front and back) of the payment instrument. Copies shall be made after each payment instrument has been endorsed with the legal name of the licensee. Endorsements on all payment instruments accepted by the check casher shall be made at the time of acceptance.
(b) The fee charged to cash the payment instrument;
(c) The verification fee, if any, imposed on the customer.
(3) The following additional information shall be maintained:
(a) Records relating to all returned payment instruments that shall include the following:
1. A copy, face and reverse (front and back), of all returned payment instruments;
2. The date of deposit by the licensee;
3. The date the payment instrument was returned to the licensee;
4. Documentation of all fees and charges paid by the customer in the collection of the returned item; and
5. The date on which collection is made from the customer or charged-off by the licensee.
(b) A daily summary of the business activities including the following documents:
1. Bank deposit receipts;
2. Copies of checks or withdrawal receipts evidencing withdrawal of funds from accounts maintained by the licensee; and
3. A daily cash reconciliation summarizing each day’s activities and reconciling cash on hand at the close of business. The daily cash reconciliation shall be sufficiently detailed to provide an audit trail of each day’s business activity. Where the licensee provides multiple business services through the same legal entity the daily cash reconciliation shall be maintained in such manner as to separate business activities such as check cashing.
(c) Bank statements of the licensee received and maintained no less often than monthly for all accounts from which the licensee operates.
(4) In addition to the records required in subsections (2) and (3) (1) and (2), for payment instruments exceeding $1,000.00, the check casher shall:
(a) Affix an original thumbprint of the conductor to the original of each payment instrument accepted which is taken at the time of acceptance;
(b) Secure and maintain a copy of the original payment instrument, including the thumbprint of the conductor;
(c) Secure and maintain a legible copy of the personal identification, as defined by Section 560.310(2)(b) 560.310(1)(b)1., F.S., presented by conductor at the time of acceptance;
(d) Create and maintain a customer file for each entity listed as the payee on corporate payment instruments and third party payment instruments accepted by the licensee. Each customer file must include, at a minimum, the following information:
1. Documentation from the Secretary of State verifying registration as a corporation or fictitious entity showing the listed officers and FEID registration number. If a sole proprietor uses a fictitious name or is a natural person, then the customer file shall include the social security number of the business owner and documentation of the fictitious name filing with the Secretary of State.
2. Articles of Incorporation or other such documentation which establishes a legal entity in whatever form authorized by law. For purposes of this rule a sole proprietor operating under a fictitious name registered with the Secretary of State shall not have to present such documentation.
3. Documentation of the business license/occupational license, business tax receipt, or its equivalent occupational license from the municipality county where the entity is located.
4. A copy of the search results screen page from Compliance Proof of Coverage Query Page webpage from the Florida Department of Financial Services – Division of Workers’ Compensation website (https://apps8.fldfs.com/proofofcoverage/Search.aspx) http://www.fldfs.com/WCAPPS/Compliance_POC/wPages/query.asp).
5. Documentation of individuals authorized to negotiate payment instruments on the corporation or fictitious entity’s behalf including corporate resolutions or powers of attorney. Payment instruments for insurance claims where there are multiple payees shall be exempt from this provision provided that the maker of the check is an insurance company and the licensee has obtained and retained documentation as to the identity of the natural person listed as a payee on such payment instrument.
(e) All check cashers shall review Review and update all active customer files at least 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)(a) In addition to the records required in subsections (1) and (2) for payment instruments $1,000.00 or more, the check casher shall create and maintain an electronic log of payment instruments accepted which includes, at a minimum, the following information:
1. Transaction date;
2. Payor name;
3. Payee name;
4. Conductor name, if other than the payee;
5. Amount of payment instrument;
6. Amount of currency provided;
7. Type of payment instrument;
a. Personal check;
b. Payroll check;
c. Government check;
d. Corporate check;
e. Third party check; or
f. Other payment instrument;
8. Fee charged for the cashing of the payment instrument;
9. Branch/Location where instrument was accepted;
10. Identification type presented by conductor; and
11. Identification number presented by conductor.
(b) Electronic logs shall be maintained in an electronic format that is readily retrievable and capable of being exported to most widely available software applications including Microsoft EXCEL.
(6) Check Cashing Database: Commencing on September 3, 2015, but no later than October 1, 2015, every check casher must submit the following information into the check cashing database prior to the check casher providing currency (or payment instrument if a Part II licensee):
1. Transaction date.
2. Payor name as displayed on the payment instrument.
3. Payee name as displayed on the payment instrument.
4. Conductor name, if different from the payee name.
5. Amount of the payment instrument.
6. Amount of currency provided.
7. Type of payment instrument.
8. Amount of the fee charged for cashing of the payment instrument.
9. Branch or location where the payment instrument was accepted.
10. The type of identification and identification number presented by the payee or conductor.
11. Payee’s workers’ compensation insurance policy number or exemption certificate number, if a corporate payment instrument and an active policy exists.
12. Payee Corporate Document Number as issued by the Secretary of State, if a corporate payment instrument.
13. Payee Federal Employer Identification Number, if a corporate payment instrument.
(7) Upon commencement of a check casher entering check cashing transaction into the database pursuant to paragraph (6) a check casher will no longer be required to record check cashing transaction on an electronic log as required pursuant to paragraphs (5)(a) & (b). The check casher must continue to retain the electronic log in its records for all transactions recorded prior to utilizing the check cashing database.
Rulemaking Authority 560.105, 560.310, FS. Law Implemented 560.310 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.704, Amended 1-13-09,______________.
69V-560.705 Foreign Currency Exchangers.
(1) A foreign currency exchanger shall maintain receipts for each transaction, regardless of the amount. The receipts must include the date of the transaction, the amount and type of currency received and given in exchange.
(2) In addition to the above records, foreign currency exchangers must maintain records of the amount of each bank deposit, including currency deposited.
(3) A foreign currency exchanger shall maintain all monthly financial institution bank statements.
(4) A foreign currency exchanger shall maintain all records of purchases and sales of foreign currencies from financial institutions including dates, amounts, and rates of exchange.
Rulemaking Authority 560.105 FS. Law Implemented 560.310 560.1105 FS. History–New 9-24-97, Formerly 3C-560.705, Amended 1-13-09,___________.
NAME OF PERSON ORIGINATING PROPOSED RULE: Gregory Oaks
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 23, 2015
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 28, 2015
Document Information
- Comments Open:
- 7/29/2015
- Summary:
- The rule amendments will remove the disciplinary guidelines form the body of the rule and incorporate the disciplinary matrix by reference, make updates and technical changes, and revise the examination fees charged to licensees which will result in a cost savings to the industry.
- Purpose:
- The purpose and effect of the amended rule is to remove the disciplinary guidelines as found in the rule text and to transfer the disciplinary guidelines provisions to a form incorporated into the rule entitled "Office of Financial Regulation, Division of Consumer Finance, Disciplinary Guidelines for Money Services Businesses," to amend the section specifying the mitigating and aggravating factors the Office shall consider in determining appropriate penalties, to adopt new forms, to readopt ...
- Rulemaking Authority:
- 215.405, 560.105, 560.1091, 560.1092, 560.118, 560.123, 560.126, 560.141, 560.1141, 560.2085, 560.205, 560.209, 560.309, 560.310, 560.403
- Law:
- 215.405, 560.103, 560.105, 560.109, 560.1091, 560.1092, 560.1105, 560.1105(1), 560.111, 560.114, 560.1141, 560.118, 560.118(2), 560.123, 560.1235, 560.125, 560.126, 560.128, 560.1401, 560.141, 560.142, 560.143, 560.204, 560.205, 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, 943.053
- Contact:
- Sheila Harley, 850/410-9716, sheila.harley@flofr.com
- Related Rules: (15)
- 69V-560.1000. Disciplinary Guidelines
- 69V-560.1012. Adoption of Forms
- 69V-560.1013. Electronic Filing of Forms and Fees
- 69V-560.102. Application Forms, Procedures and Requirements
- 69V-560.103. Definitions
- More ...