On June 9, the Louisiana governor signed into law HB 1230 (Act No. 888), the Louisiana Money Transmission Act. The law takes effect July 1 and will replace the state’s Sale of Checks and Money Transmission Act, revising the licensing, supervision and regulation of money transmission activities in the state. The law defines “money transmission” to include selling or issuing payment instruments or stored value, or receiving money or monetary value for transmission, from a person located in Louisiana. The law provides that a person may not engage in the business of money transmission, or advertise, solicit or hold itself out as providing money transmission, unless licensed under the law or covered by an exemption.

The commissioner of the Office of Financial Institutions may coordinate with other state and federal regulators; participate in multistate supervisory processes; and use NMLS for licensing, reporting, criminal history background checks, fee processing, and examinations. The law requires licensees to submit quarterly call reports, maintain certain records for at least five years, file reports required under the BSA and other anti-money laundering laws, and meet financial responsibility requirements, including tangible net worth and surety bond requirements. The law also provides for automatic revocation of a license without further act of the commissioner in specified circumstances, including certain failures to furnish a replacement bond after a surety gives notice of cancellation or to file required information after notice and a reasonable time period. Existing money transmission licensees are not subject to conflicting or newly imposed requirements until they renew their current license or 12 months after the law’s effective date, whichever is later.