HARRISBURG, Pa., Dec. 20, 2016 /PRNewswire-USNewswire/ -- Secretary of Banking and Securities Robin L. Wiessmann has published a Secretary's Letter to businesses engaged in the transmission of money following passage of amendments to the Money Transmission Business Licensing Law, signed into law by Governor Wolf in November as Act 129 of 2016 ("the Act").
"I am pleased that the Act provides necessary updates and modernization of an important financial services statute, and look forward to working with our licensees in order to seamlessly implement this legislation," Secretary of Banking and Securities Wiessmann said. "It is critical to note that this law creates significant changes in the way money transmitters conduct business in Pennsylvania, and that its provisions become effective January 2, 2017."
The Secretary's Letter discusses issues such as the definition of which transactions fall under the scope of the Act, consumer protections, standards for licensees, bonding requirements, manner of operation, regulatory reporting, and penalties. Issues include:
- Requires licensee tangible net worth of at least $500,000;
- Clearly defines the department's expectations of applicants for licensure and renewal;
- Clarifies bonding requirement of licensees;
- Specifies that licensees' businesses must be operated in a "safe and sound manner";
- Specifies that licensees must file regulatory reports to NMLS; and
- Increases penalties for violations of the Act.
Businesses licensed under the Act are urged to read the Secretary's Letter, reminded that the letter does not constitute legal advice, and advised to seek guidance from their own counsel and trade associations. Owners and legal representatives of Pennsylvania money transmission businesses can contact the department's Licensing Office with questions at (717) 787-3717 or ra-AskLicensing@pa.gov.
Media contact: Ed Novak, 717-783-4721
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SOURCE Pennsylvania Department of Banking and Securities