Tex.
Fin. Code Section 152.252
Relationship Between Money Transmission Licensee and Authorized Delegate
(a)
In this section, “remit” means to make a direct payment of money to a money transmission licensee or the licensee’s representative authorized to receive money or to deposit money in a bank in an account specified by the licensee.(b)
Before a money transmission licensee may conduct business through an authorized delegate or may allow a person to act as the licensee’s authorized delegate, the licensee must:(1)
adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee’s authorized delegate complies with applicable state and federal law;(2)
enter into a written contract appointing an authorized delegate that complies with Subsection (d); and(3)
conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied with and will likely comply with applicable state and federal law.(c)
An authorized delegate shall operate in full compliance with this chapter.(d)
The written contract required by Subsection (b)(2) must be signed by the money transmission licensee and the authorized delegate and must, at a minimum:(1)
appoint the person signing the contract as the licensee’s authorized delegate with the authority to conduct money transmission services on behalf of the licensee;(2)
provide the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;(3)
require the authorized delegate to agree to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission services, including this chapter and regulations implementing this chapter, relevant provisions of the Bank Secrecy Act, and the Patriot Act;(4)
require the authorized delegate to remit and handle money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate;(5)
impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee;(6)
require the authorized delegate to prepare and maintain records as required by this chapter or regulations implementing this chapter, or as reasonably requested by the commissioner;(7)
acknowledge that the authorized delegate consents to examination or investigation by the commissioner;(8)
state that the licensee is subject to regulation by the commissioner and that, as part of that regulation, the commissioner may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation; and(9)
acknowledge receipt of the written policies and procedures required under Subsection (b)(1).(e)
If a money transmission licensee’s license is suspended, revoked, surrendered, or expired, the licensee must, not later than the fifth business day after the date the licensee’s license is suspended, revoked, surrendered, or expired, provide documentation to the commissioner that the licensee has notified all applicable authorized delegates of the licensee whose names are in a record filed with the commissioner of the suspension, revocation, surrender, or expiration of a license. On suspension, revocation, surrender, or expiration of a license, applicable authorized delegates shall immediately cease to provide money transmission services as an authorized delegate of the money transmission licensee.(f)
An authorized delegate of a money transmission licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission. If an authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be considered held in trust in favor of the money transmission licensee in an amount equal to the amount of money net of fees received from money transmission.(g)
An authorized delegate may not use a subdelegate to conduct money transmission on behalf of a money transmission licensee.
Source:
Section 152.252 — Relationship Between Money Transmission Licensee and Authorized Delegate, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.152.htm#152.252 (accessed May 18, 2024).
