2020 California Code
Financial Code - FIN
DIVISION 1.2 - MONEY TRANSMISSION ACT
CHAPTER 8 - Additional Enforcement Provisions
(a) The commissioner may issue an order suspending or revoking the designation of an agent if, after notice and an opportunity for hearing, the commissioner finds that:
(1) The agent violated this division or a regulation adopted or an order issued under this division.
(2) The agent did not cooperate with an examination or investigation by the commissioner.
(3) The agent engaged in fraud, intentional misrepresentation, or gross negligence.
(4) The agent is convicted of a violation of a state or federal anti-money laundering statute.
(5) The competence, experience, character, or general fitness of the agent, or any director, officer, employee, or person in control of the agent, indicates that it is not in the public interest to permit the agent to provide money transmissions.
(6) The agent is engaging in an unsafe or unsound practice.
(7) The agent has made or caused to be made in any application or report filed with the commissioner or in any proceeding before the commissioner, any statement that was at the time and in the light of the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in any of those applications, reports, or proceedings any material fact which is required to be stated therein.
(8) The agent is an agent of a licensee who, because of its operations and financial condition, is not competent to supervise and monitor the agent.
(9) The agent will not comply with all applicable provisions of this division and of any regulation or order issued under this division.
(b) In determining whether an agent is engaging in an unsafe or unsound practice, the commissioner may consider the size and condition of the agent’s provision of money transmission services, the magnitude of the loss, the gravity of the violation of this division or a rule adopted or order issued under this division, and the previous conduct of the agent.
(c) No licensee shall appoint as an agent any person with respect to whom an order issued under this section is in effect.
(d) No person with respect to whom an order issued under this section is in effect shall become or continue to be an agent of any licensee.
(e) If applicable, the commissioner may disclose to the licensee criminal history information upon which an order is based.
(Amended by Stats. 2012, Ch. 356, Sec. 26. (SB 979) Effective January 1, 2013.)