286.11-027 Examinations and investigations.
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The commissioner may conduct an examination or investigation of a licensee or any
of its agents, as it relates to the business of money transmission.
The commissioner may conduct an examination or investigation in conjunction with
representatives of other agencies of this state or agencies of another state or of the
federal government. Instead of an examination, the commissioner may accept the
examination report of an agency of this state or of another state or of the federal
government or a report prepared by an independent licensed or certified public
accountant. The reasonable expenses incurred by the department, other Kentucky
agencies, agencies of another state, agencies of the federal government, or an
independent licensed or certified accountant in making such examination,
investigation, or report shall be borne by the licensee.
A joint examination or an acceptance of an examination report does not preclude
the commissioner from conducting an examination as provided by law. A joint
report or a report accepted under this subsection is an official report of the
commissioner for all purposes.
A licensee or agent is deemed to consent to the commissioner's examination or
investigation, whether or not prior notice is given to the licensee or agent, of the
books, records, and business operations of the licensee or agent of the licensee.
A report of examination of a licensee under this section shall be considered
confidential and privileged and not subject to disclosure under the Kentucky Open
Records Act, KRS 61.870 to 61.884. However, a licensee may disclose a Kentucky
report of examination to a financial institution upon written request from the
financial institution for the purpose of assisting the financial institution in its
compliance with the Bank Secrecy Act, 31 U.S.C. secs. 5311 to 5332 and 31 C.F.R.
pt. 103. The licensee shall provide written notice to the commissioner of the
disclosure of the Kentucky report of examination at the same time that disclosure is
made to the financial institution.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 842, effective July 15, 2010. -- Created
2006 Ky. Acts ch. 247, sec. 14, effective April 24, 2006.
Legislative Research Commission Note (7/12/2006). This section was created in 2006
Ky. Acts ch. 247 as a new section of KRS Chapter 366A. Sec. 38 of that same bill
also required that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A,
and 368 be renumbered as sections of a single KRS chapter entitled the "Kentucky
Financial Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1),
has codified this section as a new section of KRS Chapter 286.
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