Kentucky Money Transmitters Act
Kentucky · Kentucky Financial Services Code · §§ 286.11-001 to 286.11-067 · 35 sections
Overview
This act governs the business of money transmission, requiring anyone who transmits money or payment instruments for others to hold a state license unless expressly exempted. It sets entry and solvency standards — application contents and fees, minimum net worth, surety bonds or comparable security, and permissible investments held in trust for the benefit of purchasers and holders — and imposes ongoing duties including annual renewal and reporting, notice of changes in control, recordkeeping, examinations, anti-money-laundering filings, and licensee responsibility for the conduct of authorized agents. Enforcement rests with the state banking regulator, who may deny, suspend, or revoke licenses and agent designations, issue cease and desist and emergency orders, enter consent orders, and impose civil and criminal penalties, subject to administrative hearings and judicial review.
Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.
In the courts
Sections of this act have been cited in 2 court decisions.
Most-cited authority: 316 S.W.3d 279 - COM., CABINET FOR HEALTH & FAM. v. Chauvin
Sections covered
- KRS 286.11-001Short title
- KRS 286.11-003Definitions for subtitle
- KRS 286.11-005License required for persons engaging in money transmission -- Prohibition against transfer or assignment of license
- KRS 286.11-007Exemptions
- KRS 286.11-009Contents of application -- Additional information to be provided by corporate applicants -- Power of commissioner to waive requirements
- KRS 286.11-011Minimum net worth of licensee
- KRS 286.11-013Bond or other security devices
- KRS 286.11-015Permissible investments -- Power of commissioner to define permissible investments -- All permissible investments deemed to be held in trust for benefit of purchasers and holders
- KRS 286.11-017Application fee and license fee
- KRS 286.11-019Powers of commissioner to approve, deny, or refuse to issue or renew licenses -- Procedure for hearing and appeal upon denial of license -- Reapplication after denial
- KRS 286.11-021Renewal of license and annual report -- Expiration and reinstatement of license
- KRS 286.11-023Extraordinary reporting requirements
- KRS 286.11-025Changes in control of a licensee
- KRS 286.11-027Examinations and investigations
- KRS 286.11-029Maintenance of records
- KRS 286.11-031Filing and maintenance of reports required by federal and state law governing money laundering
- KRS 286.11-032Definition -- Commissioner's power to order submission of required filings to the registry, its parent or affiliate, and other agencies or authorities -- Power to establish relationships or contracts with governmental agencies and the registry or its affiliates -- Report of violations, enforcement actions, and other relevant information -- Procedure for requesting information from and distributing information to the United States Department of Justice
- KRS 286.11-033Confidentiality of data submitted to commissioner2 cites
- KRS 286.11-035Authorized agent contracts
- KRS 286.11-037Authorized agent conduct -- Commingled proceeds deemed trust funds -- Agent's duty to report to licensee
- KRS 286.11-039Suspension or revocation of license -- Procedure for hearing and appeal upon suspension or revocation -- Limitations upon reissue of license -- Factors to be considered by commissioner
- KRS 286.11-041Suspension or revocation of designation of an agent -- Factors to be considered by commissioner -- Procedure for hearing and appeal upon revocation of designation -- Limitations upon future designation of agent after revocation
- KRS 286.11-043Power of commissioner to issue cease and desist orders -- Petition for temporary or permanent injunction
- KRS 286.11-045Emergency order governing suspension, limitation, or restriction of license or designation of agent -- Appeal from emergency order
- KRS 286.11-047Civil penalties
- KRS 286.11-049Consent orders
- KRS 286.11-051Commissioner's power to stay orders pending exhaustion of administrative remedies
- KRS 286.11-053Right of aggrieved person to apply for administrative hearing -- Appeal from final order to Franklin Circuit Court
- KRS 286.11-055Right of aggrieved person to file written complaint with commissioner -- Commissioner's power to investigate and resolve complaints -- Suspension of license for noncompliance with subpoena -- Petition to court for enforcement
- KRS 286.11-057Penalties
- KRS 286.11-059Administrative proceedings to be conducted under KRS Chapter 13B
- KRS 286.11-061Powers and duties of department and commissioner relating to the regulation, supervision, and licensing of money transmitters
- KRS 286.11-063Licensees and agents to comply with all applicable federal and state laws
- KRS 286.11-065Licenses issued under provisions of former KRS Chapter 366 to remain in force
- KRS 286.11-067General Assembly intends to ensure safe and sound operation of money transmission in the Commonwealth
Enacted in other states
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