Common Violations Cited in Money Transmitter Examination Reports

O.C.G.A. Section 7-1-692 states, in part, that the Department may suspend or revoke an original or renewal license issued pursuant to this article if it finds that any ground or grounds exist which would require or warrant the refusal of an application for the issuance or renewal of a license if such an application or notification were then before it.  

The Department may also deny an application, suspend or revoke an original or renewal license issued pursuant to this article if it finds that the licensee has violated any provisions of this article, any rule or regulation issued pursuant thereto, any order issued by the department, or any other law in the course of its dealings as a licensee.

The following table is a listing of the most common violations cited in money transmitter exam reports. The summaries provided are not comprehensive of Georgia law or related Department Rules and Regulations.  Georgia Laws and Department Rules, Regulations, and Rulings governing financial institutions and licensees under the regulatory authority of the Department can be found here:  https://dbf.georgia.gov/laws-regulations-rulings-and-publications

 

Law or Regulation

 

Summary

 

Covered employee background checks (O.C.G.A. 7-1-684(e))

Licensees are required to obtain and maintain a G.C.I.C.-handled criminal background check for all covered employees.  The background check must be obtained and reviewed prior to date of hire. 

Effective July 1, 2023, O.C.G.A.7-1-684(e) is amended to no longer require a G.C.I.C.-handled background check.  Money Transmitter Licensees are now required to obtain and maintain a commercial criminal background check for all covered employees. As before, the background check must be obtained and reviewed prior to date of hire. 

Notice of Change in Executive Officer (O.C.G.A. 7-1-687) Unless prior Department approval of a change in executive officer  is required under O.C.G.A. 7-1-688, a licensee shall notify the Department in writing of any change of executive officer in such a manner that the notice is received by the Department no later than ten business days after the effective date of the change.  The licensee may also be required to obtain a criminal background check on the executive officer.
Failure to timely update information in NMLS (Department Rule 80-3-5-.03)

Generally, the rule requires the licensee and its control persons to keep current at all times its information in NMLS.  Amendments or changes to NMLS information must be made within ten business days of the date of the event necessitating the change.
Failure to Report Certain Events (O.C.G.A. 7-1-687)

A licensee shall send written notice to the Department within ten days of the following:

  • Any knowledge or discovery of an act prohibited by Code Section 7-1-684 or 7-1-691 or subsection (a) of Code Section 7-1-692;
  • The discharge of any employee for actual or suspected misrepresentations, dishonest acts, or fraudulent acts;
  • Any knowledge or discovery of the discharge of a covered employee or an authorized agent for actual or suspected misrepresentations, dishonest acts, or fraudulent acts;
  • Any knowledge or discovery of an administrative, civil, or criminal action initiated by any government entity against the licensee or an authorized agent, any director, officer, partner, or ultimate equitable owner of the licensee or authorized agent, or any individual who directs the affairs of or controls or establishes policy for the licensee or authorized agent;or
  • The filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. Sections 101 through 110, for bankruptcy reorganization or the filing of a petition by or against the licensee for receivership or the making of a general assignment for the benefit of its creditors.
Registration as a Money Service Business with the Financial Crimes Enforcement Network (Department Rule 80-3-6-.01(2))

All Money Transmitter licensees that are required by federal regulations to maintain registration as a Money Service Business must do so in accordance with Department Rule 80-3-6-.01(2)

 
Bank Secrecy Act Compliance Program (Department Rule 80-3-6-.01(3)) Money Transmitter licensees must have a compliance program and must comply with the recordkeeping requirements, currency transaction reporting, and suspicious activity reporting set forth in the Bank Secrecy Act provided the licensees are required to do so under the Bank Secrecy Act.  Licensees may consult https://www.fincen.gov/resources/financial-institutions/money-services-… for questions about the federal requirements.