2021 Louisiana Laws
Revised Statutes
Title 6 - Banks and Banking
§1385. Requirements

RS 1385 - Requirements

A. An applicant for a license pursuant to the provisions of this Chapter shall submit the application through the Nationwide Multi-State Licensing System (NMLS) and satisfy all of the following:

(1) Except as otherwise provided in Subsection B of this Section, provide all of the following information relevant to the applicant's proposed virtual currency business activity:

(a) The legal name of the applicant, each current or proposed business United States Postal Service address of the applicant, and any fictitious or trade name the applicant uses or plans to use in conducting its virtual currency business activity with or on behalf of a resident.

(b) The legal name, any former or fictitious name, and the residential and business United States Postal Service address of each executive officer and responsible individual of the applicant, and each person that has control of the applicant.

(c) A description of the current and former business of the applicant for the five years before the application is submitted or, if the business has operated for less than five years, for the time the business has operated, including its products and services, associated internet website addresses and social media pages, principal place of business, projected user base, and specific marketing targets.

(d) The name, United States Postal Service address, and telephone number of a person that manages each server the applicant expects to use in conducting its virtual currency business activity with, or on behalf of, a resident and a copy of any agreement with that person.

(e) A list of both of the following:

(i) Each money service or money transmitter license the applicant holds in another state and the date the license expires.

(ii) Any license revocation, license suspension, or other disciplinary action taken against the licensee in another state and any license applications rejected by another state.

(f) A list of any criminal conviction, deferred prosecution agreement, or pending criminal proceeding in any jurisdiction against all of the following:

(i) The applicant.

(ii) Each executive officer of the applicant.

(iii) Each responsible individual of the applicant.

(iv) Each person that has control over the applicant.

(v) Each person over which the applicant has control.

(g) A list of any litigation, arbitration, or administrative proceeding in any jurisdiction in which the applicant, or an executive officer or a responsible individual of the applicant, has been a party for the five years before the application is submitted, determined to be material in accordance with generally accepted accounting principles and to the extent the applicant would be required to disclose the litigation, arbitration, or administrative proceeding in the applicant's audited financial statements, reports to equity owners, and similar statements or reports.

(h) A list of any bankruptcy or receivership proceeding in any jurisdiction for the ten years before the application is submitted in which any of the following was a debtor:

(i) The applicant.

(ii) Each executive officer of the applicant.

(iii) Each responsible individual of the applicant.

(iv) Each person who has control over the applicant.

(v) Each person over which the applicant has control.

(i) The name and United States Postal Service address of each bank in which the applicant plans to deposit funds obtained by its virtual currency business activity.

(j) The source of funds and credit to be used by the applicant to conduct virtual currency business activity with, or on behalf of, a resident and documentation demonstrating that the applicant has the net worth and reserves required pursuant to R.S. 6:1386.

(k) The United States Postal Service address and electronic mail address to which communications from the department may be sent.

(l) The name, United States Postal Service address, and electronic mail address of the registered agent of the applicant in this state.

(m) A copy of the certificate, or a detailed summary acceptable to the department, of coverage for each liability, casualty, business-interruption, or cyber-security insurance policy maintained by the applicant for itself, an executive officer, a responsible individual, or the applicant's users.

(n) If applicable, the date on which, and the state where, the applicant is formed and a copy of a current certificate of good standing issued by that state.

(o) If a person has control of the applicant and the person's equity interests are publicly traded in the United States, a copy of the audited financial statement of the person for the most recent fiscal year or most recent report of the person filed pursuant to 15 U.S.C. 78.

(p) If a person has control of the applicant and the person's equity interests are publicly traded outside the United States, a copy of the audited financial statement of the person for the most recent fiscal year of the person or a copy of the most recent documentation similar to that required in Subparagraph (o) of this Paragraph filed with the foreign regulator in the domicile of the person.

(q) If the applicant is a partnership or a member-managed limited liability company, the names and United States Postal Service addresses of all general partners or members.

(r) If the applicant is required to register with the Financial Crimes Enforcement Network of the United States Department of the Treasury as a money service business, evidence of the registration.

(s) A set of fingerprints for each executive officer and responsible individual of the applicant.

(t) If available, for each executive officer and responsible individual of the applicant, for the five years before the application is submitted, employment history and history of any investigation of the individual or legal proceeding to which the individual was a party.

(u) Other information the department reasonably requires by rule.

(2) Be accompanied by a nonrefundable fee in the amount determined by the department to cover the reasonable costs of regulation.

B. For good cause, the department may waive the fee required pursuant to Paragraph (A)(2) of this Section or permit the applicant to submit other information instead of the required information.

C. An application for a license pursuant to this Section shall not be complete until the department receives all information required by the provisions of this Chapter and completes its investigation pursuant to Subsection D of this Section.

D.(1) On receipt of a completed application, the department shall investigate all of the following:

(a) The financial condition and responsibility of the applicant.

(b) The relevant financial and business experience, character, and general fitness of the applicant.

(c) The competence, experience, character, and general fitness of each executive officer, each responsible individual, and any person that has control of the applicant.

(2) At the option of the department, it may investigate the business premises of an applicant.

E.(1) Not later than thirty days after an application is complete, the department shall send the applicant notice of its decision to approve, conditionally approve, or deny the application.

(2) If the department does not send the applicant notice of its decision within thirty-one days of completion of the application, the application shall be deemed denied.

(3) If the department does not receive notice from the applicant that the applicant accepts conditions specified by the department within thirty-one days following the department's notice of the conditions, the application shall be deemed denied.

F. A license shall be effective on the later of either of the following:

(1) The date on which the department issues the license.

(2) The date the licensee provides the security required pursuant to R.S. 6:1386.

G. An applicant shall pay the reasonable costs of the department's investigation pursuant to this Section.

Acts 2020, No. 341, §1.