Haw. Rev. Stat. § 489D-1
Short title
This chapter may be cited as the Money Transmitters Modernization Act.
Hawaii Revised Statutes Chapter 489D — Money Transmitters Modernization Act
Hawaii · statute · Haw. Rev. Stat. ch. 489D · 39 active provisions
Provisions
Haw. Rev. Stat. § 489D-2
Purpose
It is the intent of the legislature to establish within the State a licensure system to ensure the safe and sound operation of money transmission businesses, to ensure that these businesses are not used for criminal purposes, to promote confidence in the State's financial system, and to protect the public interest.
Haw. Rev. Stat. § 489D-3
License required
(a) On or after July 1, 2007, no person except those excluded pursuant to section 489D-5, shall engage in the business of money transmission without a license as provided in this chapter. (b) A person is engaged in providing money transmission if the person provides those services to persons in the State, even if the p…
Haw. Rev. Stat. § 489D-4
Definitions
For purposes of this chapter: "Acting in concert" means individuals knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement. "Applicant" means a person filing an application for a license under this chapter. "Authorized delegate" means an e…
Haw. Rev. Stat. § 489D-5
Exclusions
. (a) This chapter shall not apply to: (1) The United States or any department, agency, or instrumentality thereof; (2) The United States Postal Service; (3) The State or any political subdivisions thereof; (4) The electronic transfer of government benefits for any federal, state, or county governmental agency as defin…
Haw. Rev. Stat. § 489D-6
License qualifications; tangible net worth; good standing
(a) A licensee shall maintain at all times a tangible net worth of the greater of: (1) $100,000 or three per cent of tangible assets for the first $100,000,000; (2) Two per cent of additional assets for $100,000,000 to $1,000,000,000; and (3) 0.5 per cent of additional assets for over $1,000,000,000. Tangible net worth…
Haw. Rev. Stat. § 489D-6.2
Registration with NMLS
The commissioner may require all licensees to register with NMLS.
Haw. Rev. Stat. § 489D-7
Bond or other security device
. (a) Each application for a license shall be accompanied by a surety bond, irrevocable letter of credit, or other similar security device acceptable to the commissioner in the amount of $100,000 for the initial twelve months of licensure. Thereafter, each licensee shall maintain a bond in the amount required by this s…
Haw. Rev. Stat. § 489D-8
Permissible investments and statutory trust
(a) A licensee, at all times, shall possess permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of no less than the aggregate amount of all outstanding money transmission obligations. This requirement may be waived by the commissioner if the…
Haw. Rev. Stat. § 489D-9
License and registration; application
(a) The commissioner may enter into agreements or contracts with the operators of NMLS or other entities designated by NMLS to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this chapter. (b) For the purpose and the extent necessary to use NMLS,…
Haw. Rev. Stat. § 489D-9.5
Limited exemption for financial institutions; financial institutions as authorized delegates
(a) Banks, bank holding companies, credit unions, savings banks, financial services loan companies, and mutual banks organized under the laws of the United States or any state shall be exempt from the licensing and examination provisions of this chapter. (b) An applicant or licensee may appoint an entity described in s…
Haw. Rev. Stat. § 489D-10
Application and license fees
. (a) Each application shall be accompanied by: (1) A nonrefundable application fee in the amount of $5,000; and (2) An initial annual license fee of $5,000. (b) The license fee shall be refunded if the application is denied.
Haw. Rev. Stat. § 489D-11
Issuance of license; grounds for denial
(a) Upon the filing of a complete application, the commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant. The commissioner may conduct an on-site investigation of the applicant, the reasonable cost of which shall be…
Haw. Rev. Stat. § 489D-12
Renewal of license and annual report
(a) On or before December 31 of each year, each licensee shall pay renewal fees based on the number of annualized money transmissions as follows: (1) $3,000 for licensees with fewer than 5,000 money transmissions; (2) $5,000 for licensees with 5,000 or more but fewer than 50,000 money transmissions; (3) $8,000 for lice…
Haw. Rev. Stat. § 489D-12.5
Penalties and other charges
Administrative penalties and other charges assessed under this chapter shall be deposited into the compliance resolution fund established pursuant to section 26-9(o).
Haw. Rev. Stat. § 489D-13
Licensee liability
A licensee's responsibility to any person for a money transmission conducted on that person's behalf by the licensee or the licensee's authorized delegate shall be limited to the amount of money transmitted, the face amount, or the purchase amount of the payment instrument.
Haw. Rev. Stat. § 489D-14
Extraordinary reporting requirements
Within fifteen business days of the occurrence of any one of the events listed below, a licensee shall file a written report with the commissioner describing the event and its expected impact on the licensee's activities in this State. These events are: (1) Any material change in information provided in a licensee's ap…
Haw. Rev. Stat. § 489D-14.5
Name change
To change its name, its fictitious name, or its trade name, a licensee shall file an application with the commissioner and pay a nonrefundable fee of $1,000 or a greater amount as the commissioner shall establish by rule pursuant to chapter 91. The application shall be approved if the commissioner is satisfied that the…
Haw. Rev. Stat. § 489D-15
Changes in control of a licensee
(a) A person or group of persons requesting approval of a proposed change of control of a licensee shall submit to the commissioner an application requesting approval of a proposed change of control of the licensee, accompanied by a nonrefundable application fee of $2,500. (b) After review of a request for approval und…
Haw. Rev. Stat. § 489D-16
Money laundering reports
(a) Every licensee and its authorized delegates shall file with the commissioner all reports relating to transactions in the State, as required by federal recordkeeping and reporting requirements in title 31 United States Code section 5311 et seq., [title] 31 Code of Federal Regulations part 1022, section 1022.210, and…
Haw. Rev. Stat. § 489D-17
Examinations and investigations
(a) The commissioner may examine or investigate a licensee or authorized delegate of a licensee as reasonably necessary or appropriate to administer and enforce this chapter, rules adopted or orders issued under this chapter, and other applicable law including but not limited to the Bank Secrecy Act, title 31 United St…
Haw. Rev. Stat. § 489D-18
Maintenance of records
(a) Each licensee shall make, keep, preserve, and make available for inspection by the commissioner the following books, accounts, and other records for a period of three years: (1) A record or records of each payment instrument; (2) A general ledger containing all assets, liability, capital, income, and expense accoun…
Haw. Rev. Stat. § 489D-19
Confidentiality of records
(a) The commissioner and all employees, contractors, attorneys contracted or employed by the State, and appointees of the division of financial institutions shall not divulge or furnish any information in their possession or obtained by them in the course of their official duties to persons outside the division, except…
Haw. Rev. Stat. § 489D-20
Money transmitter receipts and refunds
(a) Each licensee who receives money or monetary value for transmission and the licensee's authorized delegates shall transmit the monetary equivalent of all money or equivalent value received from a customer for transmission, net of any fees, or issue instructions committing the money or its monetary equivalent, to th…
Haw. Rev. Stat. § 489D-21
Authorized delegate contracts
Licensees desiring to conduct licensed activities through authorized delegates shall authorize each delegate to operate pursuant to an express written contract. These contracts shall provide the following: (1) That the licensee appoints the person as the licensee's delegate with authority to engage in money transmissio…
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