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Chapter 208-690 WAC

Last Update: 6/19/18

REGULATION OF MONEY SERVICES PROVIDERS

WAC Sections

PART A
DEFINITIONS
HTMLPDF208-690-010Definitions.
HTMLPDF208-690-014How does the department interpret the definitions in RCW 19.230.010?
PART B
APPLICATION OF CHAPTEREXEMPTIONS
HTMLPDF208-690-015What activities are excluded from the act?
HTMLPDF208-690-016Can the director waive the licensing provisions of the act?
HTMLPDF208-690-018How does the department interpret the activities that are excluded in RCW 19.230.020?
PART C
LICENSING
HTMLPDF208-690-020Voluntary license application.
HTMLPDF208-690-030License application.
HTMLPDF208-690-031What will happen if I abandon my license application?
HTMLPDF208-690-035Authorized delegates.
HTMLPDF208-690-036Authorized delegate advertising.
HTMLPDF208-690-040Surety bond—Money transmitters.
HTMLPDF208-690-041Surety bond—Online currency exchangers.
HTMLPDF208-690-050Increase of surety bond.
HTMLPDF208-690-060Tangible net worth.
HTMLPDF208-690-070License denial.
HTMLPDF208-690-071Other license actions.
PART D
RECORDKEEPING AND REPORTING
HTMLPDF208-690-075Books and records.
HTMLPDF208-690-080Audited annual financial statement.
HTMLPDF208-690-085Permissible investments.
HTMLPDF208-690-090Annual report and annual assessment.
HTMLPDF208-690-100Is there a penalty for not filing my annual report and annual assessment on time?
HTMLPDF208-690-103How is the annual assessment calculated and when is the annual assessment due?
HTMLPDF208-690-105What are my quarterly call report filing requirements?
HTMLPDF208-690-110Report of material change.
HTMLPDF208-690-112Other reports.
HTMLPDF208-690-115Request for approval of change of control.
HTMLPDF208-690-120When must I update information about licensee branch locations and authorized delegates?
HTMLPDF208-690-125Records disposal.
PART E
FEES
HTMLPDF208-690-130License fees.
HTMLPDF208-690-150Transaction fee.
HTMLPDF208-690-170Investigation and examination fees.
PART F
ENFORCEMENT
HTMLPDF208-690-180Authority to conduct examinations and investigations.
PART G
RECEIPTS AND DISCLOSURES
HTMLPDF208-690-200What information must receipts contain to be in compliance with RCW 19.230.330(2)?
HTMLPDF208-690-205What disclosures must I provide to consumers?
PART H
LICENSEE REQUIREMENTS AND RESTRICTIONS
HTMLPDF208-690-210In addition to the Uniform Money Services Act, what other laws do I have to comply with?
HTMLPDF208-690-220Restrictions on business name.
HTMLPDF208-690-230How do I use a name other than the company's legal name?
HTMLPDF208-690-240Information security program.
HTMLPDF208-690-250Information security program required by the federal Safeguards Rule implementing the Gramm-Leach-Bliley Act (GLBA).
HTMLPDF208-690-260Consumer financial information privacy under the Gramm-Leach-Bliley Act (GLBA) and Regulation P.
HTMLPDF208-690-270Notice to consumers of data breach.
HTMLPDF208-690-280Business resumption plan.
DISPOSITION OF SECTIONS FORMERLY CODIFIED IN THIS TITLE
208-690-045Alternatives to the surety bond. [Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-045, filed 6/27/16, effective 8/1/16. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-045, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-045, filed 7/7/04, effective 8/7/04.] Repealed by WSR 18-13-108, filed 6/19/18, effective 8/1/18. Statutory Authority: RCW 43.320.040 and 19.230.310.
208-690-140How is the annual assessment calculated and when is the annual assessment due? [Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-140, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-140, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, chapter 19.230 RCW, and 2010 c 73. WSR 10-12-038, § 208-690-140, filed 5/25/10, effective 6/25/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-140, filed 7/7/04, effective 8/7/04.] Repealed by WSR 18-13-108, filed 6/19/18, effective 8/1/18. Statutory Authority: RCW 43.320.040 and 19.230.310.
208-690-160Late fees. [Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-160, filed 7/7/04, effective 8/7/04.] Repealed by WSR 10-12-038, filed 5/25/10, effective 6/25/10. Statutory Authority: RCW 43.320.040, chapter 19.230 RCW, and 2010 c 73.


PDF208-690-010

Definitions.

What definitions are applicable to these rules? In addition to the definitions herein, the definitions in chapter 19.230 RCW apply throughout this chapter unless the context clearly requires otherwise.
"Act" means the Uniform Money Services Act, chapter 19.230 RCW.
"Advertise, advertising, or advertising material" means any form of sales or promotional materials used in connection with the business. Advertising material includes, but is not limited to, newspapers, magazines, leaflets, flyers, direct mail, indoor or outdoor signs or displays, point-of-sale literature or educational materials, other printed materials; radio, television, public address system, or other audio broadcasts; internet pages, social media pages, instant messages, or electronic bulletin boards.
"AML compliance officer" means the individual(s) employed by the licensee or licensee's parent or affiliate designated to implement the anti-money laundering (AML) program.
"Audited financial statement" means a statement prepared by an independent accountant according to generally accepted accounting principles.
"Bill payment" service means a type of money transmission when an intermediary accepts funds from a consumer for transmission to a merchant for payment on a consumer's account. The intermediary may or may not charge a fee for this service.
"Department" means the department of financial institutions.
"Funds" means money or its equivalent value.
"NMLS" means a multistate licensing system developed and maintained by the Conference of State Bank Supervisors for licensing and registration.
"Online currency exchanger" means a currency exchanger who transacts business over the internet or other electronic medium, regardless of whether the currency exchanger also has a physical location in Washington state.
"Principal" means any person who controls, directly or indirectly through one or more intermediaries, alone or in concert with others, a ten percent or greater interest in a partnership, company, corporation, or association, or the owner of a sole proprietorship.
"RCW" means the Revised Code of Washington.
"Virtual currency storage" means storing access to virtual currency owned by another person.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-010, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-010, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-010, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-010, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-010, filed 7/7/04, effective 8/7/04.]



PDF208-690-014

How does the department interpret the definitions in RCW 19.230.010?

(1) "Currency exchange." For purposes of RCW 19.230.010 (8)(b), "investment" means an investment that is not money of a government.
(2) "Responsible individual." The responsible individual must:
(a) Be a citizen of the United States or have legal immigration status to work in the United States;
(b) Hold W-2 employee status with the licensee;
(c) Be knowledgeable of the laws and rules implementing the act; and
(d) Be responsible for the company's compliance with applicable state and federal laws, rules and regulations.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-014, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-014, filed 11/22/13, effective 1/1/14.]



PDF208-690-015

What activities are excluded from the act?

(1) See also RCW 19.230.020.
(2) The issuance, sale, use, redemption, or exchange of closed-loop prepaid access.
(3) The issuance or sale of open-loop prepaid access when the value is covered by federal deposit insurance immediately upon sale or issue. See the Federal Deposit Insurance Corporation (FDIC) Financial Institution Letter 129-2008 dated November 13, 2008, to determine if the underlying funds are covered by FDIC insurance immediately upon sale or issue.
(4) Storage of virtual currency by a person when the virtual currency is owned by others and the person storing the virtual currency does not have the unilateral ability to transmit the value being stored.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-015, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-015, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-015, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-015, filed 10/5/10, effective 11/5/10.]



PDF208-690-016

Can the director waive the licensing provisions of the act?

Yes. The director has the authority to waive the licensing provisions of the act upon a determination the waiver facilitates commerce and protects consumers.
[Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-016, filed 10/5/10, effective 11/5/10.]



PDF208-690-018

How does the department interpret the activities that are excluded in RCW 19.230.020?

The following are excluded:
(1) Pursuant to RCW 19.230.020 (6) and (7):
(a) Activities regulated by the Commodities Futures Trading Commission (CFTC) or exempt from registration with the CFTC;
(b) Clearance or settlement services provided by a person to a board of trade as designated by the CFTC.
(2) Pursuant to RCW 19.230.020(8), activities by persons providing clearance or settlement services under a registration as a clearing agency, or an exemption from that registration granted under the federal securities laws. The exclusion applies only to those activities.
(3) Payment processing by a person meeting the requirements in RCW 19.230.020(9), but not persons engaged in payment processing activities:
(a) Using virtual currencies;
(b) For the marijuana industry; or
(c) Holding consumer funds with no direction from the consumer to pay the funds to a payee.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-018, filed 6/19/18, effective 8/1/18.]



PDF208-690-020

Voluntary license application.

(1) Any person otherwise exempt from licensing under the provisions of the act may voluntarily submit an application to the director for a money transmitter or currency exchange license. The director shall review such application and may grant or deny licenses to such applicants upon the same grounds and subject to payment of the same fees as are applicable to persons required to be licensed.
(2) Upon receipt of a license under this section, the licensee is required to maintain a valid license and is subject to all the provisions of the act and these rules until the license is surrendered or revoked.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-020, filed 6/27/16, effective 8/1/16. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-020, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-020, filed 7/7/04, effective 8/7/04.]



PDF208-690-030

License application.

What must I do to apply for a license? You must file:
(1) A completed application in a form and in a medium prescribed by the director through the NMLS. See RCW 19.230.040 for the required contents of the application. In addition, the application must contain:
(a) The fingerprints of the proposed responsible individual and a personal credit report from a recognized independent credit reporting agency on the proposed responsible individual;
(b) A list of the applicant's proposed authorized delegates including the business name and any additional names by which the business may be known, the business address and name of the primary contact person for each authorized delegate, and the locations in this state where the applicant and its authorized delegates propose to engage in the provision of money services;
(c) A full description of the screening process used by the applicant in selecting authorized delegates, including a sample of any forms used, and the method used to screen for criminal history; and
(d) Identification of the bank account established for the business including, but not limited to, the bank name, address, account number, and account type.
(2) If the applicant is a corporation, limited liability company, partnership, or other entity, the applicant must also provide:
(a) The legal name, any fictitious or trade name, all business and residential addresses, date of birth, Social Security number, and employment history in the ten-year period preceding the submission of the application for each AML compliance officer;
(b) If the applicant or its corporate parent is not a publicly traded entity, the fingerprints of each executive officer, board director, AML compliance officer or other person that has control of the applicant; and
(c) A list of any criminal convictions, material litigation, and any litigation related to the provision of money services, in the ten-year period preceding the submission of the application in which any AML compliance officer has been involved.
(3) Surety bonds as required by WAC 208-690-040 or 208-690-041.
(4) An application fee as prescribed by WAC 208-690-130(1). The application fee is not refundable. The director may require all fees to be paid through the NMLS.
(5) An additional license fee as prescribed by WAC 208-690-130(2).
(6) If the application is for money transmission, a certification that the applicant's investment portfolio, if maintained as permissible investments for outstanding transmission liabilities, includes only the permissible investments under RCW 19.230.200 and 19.230.210.
(7) If you are engaged in virtual currency storage, an information security audit report which at a minimum: Occurred within one year of the date of an application submission; and was completed by a company or individual with information security credentials acceptable to the director.
(8) Application for a proposed license or trade name. The application may be denied if the proposed name is similar to a currently existing licensee name, including trade names, is prohibited because it is deceptive or in violation of any other statute that limits the use of names, or is otherwise likely to cause confusion as to the identity of the true service provider.
The director may waive one or more requirements of this section or permit an applicant to submit other information in lieu of the required information.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-030, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-030, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-030, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-030, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-030, filed 7/7/04, effective 8/7/04.]



PDF208-690-031

What will happen if I abandon my license application?

If you do not respond as directed within forty-five days to the department's request for additional required information, your money transmission or currency exchange license application is considered abandoned and you forfeit all fees paid. Failure to provide the requested information will not affect new applications filed after the abandonment. You may reapply by submitting a new application package and new application fee.
[Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-031, filed 10/5/10, effective 11/5/10.]



PDF208-690-035

Authorized delegates.

What are the rules I must comply with when I have authorized delegates?
(1) Only a licensee may designate an authorized delegate.
(2) A person accepting consumers' funds for transmission through an exempt or excluded entity under RCW 19.230.020 is not an authorized delegate but is a money transmitter and must be licensed under the act.
(3) Any person you designate to provide money services on your behalf is an authorized delegate, regardless of whether that person would be exempt or excluded from the application of chapter 19.230 RCW if they provided money services on their own behalf.
(4) Your authorized delegates must be physically located in the state of Washington unless you have received prior approval from the director to designate an authorized delegate physically located outside of the state of Washington.
(5) The licensee has supervisory authority over the actions of the authorized delegate when providing services on behalf of the licensee. The department may take action against a licensee and/or the authorized delegate for any actions by the authorized delegate on behalf of the licensee in violation of the act or rules.
(6) A written contract between you and an authorized delegate must contain, among all the other contract provisions, provisions with language substantially similar to the following:
(a) The authorized delegate must operate in full compliance with chapter 19.230 RCW and the rules adopted under this chapter.
(b) The authorized delegate is prohibited from using subdelegates or conducting business from locations not authorized by the department.
(c) A description of the specific money services you authorize the delegate to perform on your behalf.
(7) The authorized delegate may only conduct activities authorized by you in the written agreement, unless the authorized delegate is also a licensee.
(8) You may contract with another licensee to use that other licensee's existing authorized delegates to load funds onto your existing open-loop prepaid access product. If the shared authorized delegate sells new open-loop prepaid access product for you, you must add the authorized delegate to your authorized delegate roster.
(9) The authorized delegate must include the licensee's name along with the other applicable requirements of RCW 19.230.330(2) on any disclosures or receipts.
(10) The licensee's bond covers the actions of the authorized delegate while the authorized delegate is providing money services on behalf of the licensee pursuant to the written contract.
(11) You must maintain your authorized delegate agreements and contracts with other licensees to share existing authorized delegates as part of your books and records pursuant to RCW 19.230.170 and make them available to the department upon request.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-035, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-035, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-035, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-035, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-035, filed 7/7/04, effective 8/7/04.]



PDF208-690-036

Authorized delegate advertising.

An authorized delegate must not advertise or provide money services under its own name without an equally prominent display of the licensee's name, in close proximity, on all advertising, including web sites. An authorized delegate must not use its name alone when advertising money services provided on behalf of the licensee.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-036, filed 6/27/16, effective 8/1/16.]



PDF208-690-040

Surety bondMoney transmitters.

What are the bonding requirements?
(1) You must continuously maintain a surety bond as required by RCW 19.230.050, issued by a company authorized to do surety business in this state, as a surety. The surety may not be a wholly owned subsidiary or affiliate of the applicant or licensee.
(2) The penal sum of the bond must be calculated quarterly during the first year of licensing and thereafter annually. The calculation must be based on the previous twelve months' money transmission and payment instrument dollar volume. The bond amount must be calculated at ten thousand dollars for every one million dollars of money transmission and payment instrument dollar volume. The minimum surety bond amount is ten thousand dollars. The maximum surety bond amount is five hundred fifty thousand dollars.
(3) The initial bond amount will be ten thousand dollars and must be reevaluated based on the schedule set forth in subsection (2) of this section.
(4) Depending on the financial services you provide, you may be required to hold the bond for up to five years after the date you cease to provide money services in this state.
(5) The director may provide an alternative to a bond under certain circumstances that would not compromise consumer protection or allow the company to operate in an unsafe or unsound manner.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-040, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-040, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-040, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-040, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-040, filed 7/7/04, effective 8/7/04.]



PDF208-690-041

Surety bondOnline currency exchangers.

What are the bonding requirements?
(1) You must continuously maintain a surety bond as required by RCW 19.230.055, issued by a company authorized to do surety business in this state, as a surety. The surety may not be a wholly owned subsidiary or affiliate of the applicant or licensee.
(2) The penal sum of the bond must be calculated quarterly during the first year of licensing and thereafter annually. The calculation must be based on the previous twelve months' online currency exchange dollar volume. The bond amount must be calculated at ten thousand dollars for every one million dollars of currency exchange dollar volume. The minimum surety bond amount is ten thousand dollars. The maximum surety bond amount is fifty thousand dollars.
(3) The initial bond amount will be ten thousand dollars and must be reevaluated based on the schedule set forth in subsection (2) of this section.
(4) The bond must cover claims for at least one year after the date of an online currency exchanger licensee's violation of the chapter or the licensee ceases to provide online currency exchange services in this state, whichever is longer.
(5) The director may provide an alternative to a bond under certain circumstances.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-041, filed 6/19/18, effective 8/1/18.]



PDF208-690-050

Increase of surety bond.

Will the department ever require an increase in the amount of the surety bond? The director may increase the amount of the surety bond, to a maximum of one million dollars, if the financial condition of a money transmitter or online currency exchanger applicant or licensee so requires. The director may consider, without limitation, the following criteria:
(1) Significant reduction of net worth.
(2) Financial losses.
(3) Potential losses resulting from violations of chapter 19.230 RCW, or these rules.
(4) Licensee filing for bankruptcy.
(5) The initiation of any proceedings against the licensee in any state, by any federal agency, or in any foreign country. This includes the filing of material litigation.
(6) The filing of a state or federal criminal charge against the licensee, person in control, responsible individual, executive officer, board director, AML compliance officer, employee, authorized delegate or principal, based on conduct related to providing money services or money laundering.
(7) A licensee, executive officer, board director, AML compliance officer, other person in control, responsible individual, principal or authorized delegate being convicted of a crime.
(8) Any unsafe or unsound practice.
(9) A judicial or administrative finding against a money transmitter licensee under chapter 19.86 RCW, or an examination report finding that the money transmitter licensee engaged in an unfair or deceptive act or practice in the conduct of its business.
(10) The nature and volume of the projected or established business activities.
(11) Other events and circumstances that, in the judgment of the director, impair the ability of the licensee to meet its obligations to its money services customers.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-050, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-050, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-050, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-050, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-050, filed 7/7/04, effective 8/7/04.]



PDF208-690-060

Tangible net worth.

What are the rules for my tangible net worth requirements?
(1) A money transmitter applicant or licensee must demonstrate and maintain tangible net worth calculated at ten thousand dollars for every one million dollars of total company-wide money transmission and payment instrument dollar volume over the previous twelve months. The minimum tangible net worth is ten thousand dollars; the maximum required amount is three million dollars.
(2) The minimum tangible net worth if the company provides virtual currency storage is one hundred thousand dollars. See the definition of virtual currency storage.
(3) The director may increase the amounts specified in subsections (1) and (2) of this section up to a maximum of three million dollars if the director determines that a higher net worth is necessary to achieve the purposes of this chapter based on the:
(a) Nature and volume of the projected or established business activities;
(b) Amount, nature, quality, and liquidity of the company's assets;
(c) Amount and nature of the company's liabilities;
(d) History of the company's operations and prospects for earning and retaining income;
(e) Quality of the company's operations;
(f) Quality of the company's management;
(g) Nature and quality of the company's principals, responsible individuals, and persons in control;
(h) History of the company's compliance with applicable state and federal law; and
(i) Any other factor the director considers relevant.
(4) Determinations of tangible net worth must be made according to generally accepted accounting principles.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-060, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-060, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-060, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-060, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-060, filed 7/7/04, effective 8/7/04.]



PDF208-690-070

License denial.

When may the department deny my license application?
(1) Director may deny a money services license if the director determines that:
(a) The application is incomplete;
(b) The surety bond or net worth requirements of WAC 208-690-040 through 208-690-060 have not been met;
(c) The general fitness and character requirements of RCW 19.230.070 or 19.230.100 have not been met as demonstrated by findings including, but not limited to, the following:
(i) The applicant, an executive officer, proposed responsible individual, board director, AML compliance officer, other person in control or authorized delegate has been convicted of any felony within the past ten years;
(ii) The applicant, an executive officer, proposed responsible individual, board director, AML compliance officer, other person in control or authorized delegate has been convicted of a crime involving a financial transaction within the past ten years;
(iii) The applicant, an executive officer, proposed responsible individual, board director, AML compliance officer or other person in control has criminal, civil, or administrative charges issued against him/them in any jurisdiction for violations relating to a financial transaction(s) within the past ten years;
(iv) The applicant, an executive officer, proposed responsible individual, board director, AML compliance officer or other person in control has falsified any information supplied in connection with the application;
(v) The applicant, or any proposed authorized delegate thereof, has had an adverse action taken against any business license related to providing financial services by a jurisdiction within the United States within the past five years;
(vi) The applicant has allowed a business under its control to deteriorate to a condition of insolvency determined by the fact that its liabilities exceed its assets or it cannot meet its liabilities as they mature;
(d) The applicant, or any authorized delegate thereof, fails to respond to a request for information from the director;
(e) The description of the screening process used by the applicant in selecting authorized delegates supplied by the applicant describes a process that is ineffective in determining the fitness of proposed authorized delegates;
(f) The applicant has failed to register with the United States Department of the Treasury as required by 31 U.S.C. Section 5330;
(g) The applicant, an executive officer, proposed responsible individual, board director, AML compliance officer or other person in control is listed on the specially designated nationals and blocked persons list prepared by the United States Department of the Treasury as a potential threat to commit terrorist acts or to finance terrorist acts.
(2) In lieu of denying an application as authorized by any of the findings in subsection (1) of this section, the director may issue a conditional license, return the application, or extend the review period if the director determines that the condition or circumstances that would likely lead to denial may be temporary and resolved satisfactorily within a reasonable period of time. The director may resume processing the application if the director determines that a favorable resolution of the disqualifying condition has occurred.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-070, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-070, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-070, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-070, filed 7/7/04, effective 8/7/04.]



PDF208-690-071

Other license actions.

When may the department take other action against my license? The director may revoke or suspend a license and issue an order to cease and desist operations as a money services licensee if:
(1) Another jurisdiction initiates an adverse action against the money services license of the licensee;
(2) Upon finding the existence of any condition or fact that would have led to denial of a license if known by the director during the processing of the application; or
(3) The licensee violates the act.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-071, filed 6/27/16, effective 8/1/16.]



PDF208-690-075

Books and records.

(1) In addition to the records required to be retained under RCW 19.230.170, you must keep records in compliance with federal law. You must maintain a record of money transmittals in accordance with applicable sections of Financial Recordkeeping and Reporting of Currency and Foreign Transactions, Title 31, Code of Federal Regulations, Part 103, as now appearing or hereafter amended.
(2) Abandoned records. If records are not maintained as required, the licensee is responsible for the costs of collection, storage, conversion to electronic format, or proper destruction of the records.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-075, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-075, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-075, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-075, filed 7/7/04, effective 8/7/04.]



PDF208-690-080

Audited annual financial statement.

When must I provide audited financial statements?
(1) You are required to have an audited financial statement prepared annually by a licensed or certified individual or firm in accordance with generally accepted accounting principles. The financials must be submitted prior to or with the annual assessment. The financials may be submitted through the NMLS. The director may waive the requirements of this subsection for licensees with minimal or no business activity conducted under their license.
(2) Applicants with no business operations prior to application must submit a copy of unconsolidated financial statements for the current fiscal year, whether audited or not. Audited annual financial statements are required in all future years of operation.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-080, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-080, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-080, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-080, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-080, filed 7/7/04, effective 8/7/04.]



PDF208-690-085

Permissible investments.

(1) You must maintain permissible investment levels pursuant to RCW 19.230.200.
(2) In addition to the permissible investments allowed in RCW 19.230.210(2), a permissible investment may also include receivables from banks and credit cards.
(3) Monthly reports about permissible investments must include the monthly calculation of the average daily transmission liability. Average daily transmission liability means the sum of the daily amounts of a licensee's outstanding money transmission, as computed each day of the month divided by the number of days in the month.
(4) A licensee transmitting virtual currencies must hold virtual currencies of the same kind and volume (like-kind) as that held by the licensee but which is obligated to consumers. For example: A licensee transmitting 100 Bitcoins and 50 Ether on behalf of consumers must be able to demonstrate it possesses at least 100 Bitcoins and 50 Ether.
(5) A licensee transmitting both money and virtual currency must maintain volumes and types of permissible investments as described in subsections (3) and (4) of this section.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-085, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-085, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-085, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-085, filed 10/5/10, effective 11/5/10.]



PDF208-690-090

Annual report and annual assessment.

What are the annual report and assessment requirements? Every licensee must submit a completed annual report and annual license assessment fee prescribed by WAC 208-690-140. The completed report and the fee must be received in the department office no later than 5:00 p.m. July 1, or 5:00 p.m. the next business day if July 1 is not a business day. A form for the preparation of the annual report and license assessment will be made available by the department by electronic transmission or mailed upon request. The report must include the following:
(1) If the licensee is a money transmitter, a copy of the licensee's most recent audited annual financial statement or, if the licensee is a wholly owned subsidiary of another corporation, the most recent audited consolidated annual financial statement of the parent company.
(2) Verification that authorized delegate information in the NMLS is current.
(3) If the licensee is a money transmitter, verification that the licensee meets permissible investment requirements under RCW 19.230.200 and 19.230.210.
(4) If the licensee is a money transmitter or online currency exchanger, verification that the licensee has an adequate surety bond as required by WAC 208-690-040 through 208-690-050.
(5) Verification that material changes, as defined by WAC 208-690-110, have been reported through the NMLS and are current.
(6) The annual report and assessment fee may be submitted through the NMLS.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-090, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-090, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-090, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-090, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-090, filed 7/7/04, effective 8/7/04.]



PDF208-690-100

Is there a penalty for not filing my annual report and annual assessment on time?

(1) If you fail to submit the required annual report and annual assessment fee by July 1, each year, the director may suspend your license and assess a late fee. The late fee is ten percent of the annual assessment if submitted thirty or fewer days late and twenty-five percent of the annual assessment if submitted more than thirty days late. The annual report and annual assessment fee are not considered to be submitted until the date both have been submitted. If your license has been suspended under this section and you submit a completed annual report, the annual assessment and the late fee to the department office no later than 5:00 p.m., thirty calendar days after the original due date, the license suspension may be removed. If the delay extends past thirty days, your license has expired effective thirty-one days after the original due date.
(2) The director may reinstate an expired license under this section if, within twenty days after the license expiration, you:
(a) File the complete annual report and pay both the annual license assessment and the late fee; and
(b) You or your delegates did not engage in providing money services during the period the license was expired.
(3) If any of the deadlines in this section occur on a day that is not a business day, the deadline shall be the next business day.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-100, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-100, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-100, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, chapter 19.230 RCW, and 2010 c 73. WSR 10-12-038, § 208-690-100, filed 5/25/10, effective 6/25/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-100, filed 7/7/04, effective 8/7/04.]



PDF208-690-103

How is the annual assessment calculated and when is the annual assessment due?

(1) The annual assessment is calculated by multiplying 0.0004 by the previous year's adjusted Washington volume of money transmission, currency exchange, prepaid access sales, and payment instrument sales, with a minimum assessment of one thousand dollars and a maximum assessment of one hundred thousand dollars.
For purposes of this section, "adjusted Washington volume" means:
(a) For money transmission, ninety-five percent of all funds transmitted;
(b) For currency exchange, five percent of all currency exchanged;
(c) For prepaid access sales, ninety-five percent of all funds loaded onto open-loop prepaid access; and
(d) For payment instrument sales, seventy percent of the first ten million dollars of payment instrument sales, twenty percent of the volume over ten million through five hundred million dollars, and one percent of any amount over five hundred million dollars.
(2) The annual assessment is due no later than 5:00 p.m. July 1st each year or the next business day if July 1st is not a business day.
(3) If thirty days after the due date the annual assessment or any late fee for failure to report or pay the annual assessment is not paid, the department may make a claim against the surety bond.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-103, filed 6/19/18, effective 8/1/18.]



PDF208-690-105

What are my quarterly call report filing requirements?

You are required to file accurate and complete call reports on the dates and in a form prescribed by the NMLS.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-105, filed 6/19/18, effective 8/1/18.]



PDF208-690-110

Report of material change.

What must I report to the department if something about my business changes? Material changes described in this section must be reported to the director through the NMLS within thirty days of the occurrence of the change. "Material change" means any change that is not trivial, and that, if not reported, would cause an investigation or examination to be misled or delayed. Such changes include, but are not limited to:
(1) A change of the licensee's physical, mailing, or email address. Additionally, a change to the physical, mailing, or emailing address of authorized delegates;
(2) A change of the responsible individual, AML compliance officer, executive officers or board members, or other person in control;
(3) A change of the licensee's name or DBA (doing business as);
(4) A change in the location where the records of the licensee that are required to be retained under RCW 19.230.170 are kept;
(5) The obtaining, revocation or surrender of a money services license in any other jurisdiction;
(6) The conviction of the licensee, an executive officer, responsible individual, board director, AML compliance officer, principal, or other person in control of a misdemeanor or gross misdemeanor involving a financial transaction;
(7) A change in your business bank account including its closure or a change in the location or identity of the bank holding the account;
(8) A change in the business plan from that submitted at application;
(9) Other similar activities or events affecting the business or executive officers or other persons in control;
(10) Changes of control. See WAC 208-690-115; and
(11) Data breach. This notification requirement may change based on directives or recommendations from law enforcement. See also WAC 208-690-270.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-110, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-110, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-110, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-110, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-110, filed 7/7/04, effective 8/7/04.]



PDF208-690-112

Other reports.

What events about my business must I report to the department? You must file a report with the director within one business day after you have reason to know of the occurrence of any of the following events:
(1) The filing of a petition by or against the licensee, or any authorized delegate of the licensee, under the United States Bankruptcy Code (11 U.S.C. 101-110) for bankruptcy or reorganization;
(2) The filing of a petition by or against the licensee, or any authorized delegate of the licensee, for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of creditors;
(3) The commencement of a proceeding to revoke, suspend, restrict, or condition its license, or otherwise discipline or sanction the licensee, in a state or country in which the licensee engages in business or is licensed;
(4) The filing of any material litigation against the licensee or any authorized delegate of the licensee;
(5) The cancellation or other impairment of the licensee's bond or other security;
(6) A charge or conviction of the licensee or of an executive officer, responsible individual, board director, principal, AML compliance officer or other person in control of the licensee, for a felony; or
(7) A charge or conviction of an authorized delegate for a felony.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-112, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-112, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-112, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-112, filed 7/7/04, effective 8/7/04.]



PDF208-690-115

Request for approval of change of control.

What must I do to request approval for a change of control of my business? You must request approval of a change of control at least thirty days prior to the proposed change of control. The request for approval must include:
(1) A comprehensive description of the proposed change that sets forth:
(a) The identity of all persons acquiring control under the proposed change;
(b) The ownership interest and managerial authority of all persons in control under the proposed change.
(2) For each new person in control under the proposed change:
(a) Biographical information, including employment history for the immediate previous five years;
(b) A personal credit report issued by a recognized independent credit reporting agency;
(c) A signed authorization for a background investigation on a form prescribed by the director.
(3) A transaction fee as prescribed by WAC 208-690-150.
(4) The change of control may result in a requirement for the filing of a new application.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 13-24-021, § 208-690-115, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-115, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-115, filed 7/7/04, effective 8/7/04.]



PDF208-690-120

When must I update information about licensee branch locations and authorized delegates?

You must update your NMLS record within thirty days of the following:
(1) Obtaining an additional licensee branch location to provide money services in Washington.
(2) Contracting with a new authorized delegate.
(3) Closing a licensee branch location.
(4) Terminating an authorized delegate relationship.
(5) See WAC 208-690-150 for fees.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-120, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-120, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-120, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-120, filed 7/7/04, effective 8/7/04.]



PDF208-690-125

Records disposal.

Licensees must have written policies and procedures for the destruction of records maintained pursuant to the act, including electronic records. The destruction of records must be accomplished so that the information cannot be reconstructed or read. The destruction of consumer credit report information must also comply with the federal disposal rule at 16 C.F.R. 682.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-125, filed 6/27/16, effective 8/1/16.]



PDF208-690-130

License fees.

What are the fees I must pay to get a license? You must pay the following fees:
(1) A application fee of one thousand dollars.
(2) An additional fee of one hundred dollars for each additional location where you or an authorized delegate will provide money services, up to a maximum of five thousand dollars.
(3) The license fee in subsection (1) of this section may be partially refundable if the application is withdrawn or denied.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-130, filed 6/27/16, effective 8/1/16. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-130, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-130, filed 7/7/04, effective 8/7/04.]



PDF208-690-150

Transaction fee.

What fees must I pay to make changes to my license?
(1) You must pay fifty dollars to add an authorized delegate to your roster of authorized delegates. The fee for adding authorized delegates is capped at five thousand dollars per quarter.
(2) You must pay thirty dollars for the following changes to your license:
(a) Change of physical address, name or trade name (DBA or doing business as);
(b) Request for approval of a change in control;
(c) Change of the responsible individual or AML compliance officer;
(d) Addition of principal, executive officer, board member, or other person in control; or
(e) Change in registered agent.
(3) Transaction fees are separate, distinct from, and in addition to investigation and examination fees under WAC 208-690-170.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-150, filed 6/19/18, effective 8/1/18; WSR 13-24-021, § 208-690-150, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-150, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-150, filed 7/7/04, effective 8/7/04.]



PDF208-690-170

Investigation and examination fees.

What fees will I be charged if the department investigates or examines my business?
(1) The director will collect fees of seventy-five dollars per hour for investigations.
(2) The licensee, applicant or person subject to licensing under this chapter who is the subject of an examination or investigation must pay the actual expenses of required out-of-state travel including, but not limited to, travel, lodging and per diem expense.
(3) Investigation and examination fees are separate, distinct from, and in addition to transaction fees imposed by WAC 208-690-150.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-170, filed 6/27/16, effective 8/1/16. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-170, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-170, filed 7/7/04, effective 8/7/04.]



PDF208-690-180

Authority to conduct examinations and investigations.

(1) When may the department examine or investigate my business? See RCW 19.230.130(1).
(2) If the director determines that there is a danger that original records may be destroyed, altered, or removed to deny access, or hinder an examination or investigation, or that original documents are necessary for the preparation of a criminal referral, the director may take possession of originals of any items described in this section, regardless of the source of such items. Originals and copies taken by the director may be held, returned, or forwarded to other regulatory or law enforcement officials as determined necessary by the director.
(3) The licensee, applicant, or person subject to licensing under this chapter must pay the cost of examinations and investigations as specified in RCW 19.230.320 and WAC 208-690-170.
(4) The director may retain attorneys, accountants, or other professionals and specialists as examiners, auditors or investigators, to conduct or assist in the conduct or examinations or investigations. The cost of these services must be borne by the person who is the subject of the examination or investigation.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-180, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-180, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-180, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-180, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 19.230.310 and 43.320.040. WSR 04-15-005, § 208-690-180, filed 7/7/04, effective 8/7/04.]



PDF208-690-200

What information must receipts contain to be in compliance with RCW 19.230.330(2)?

(1) For general money transmission transactions, the receipt must include your name, physical or mailing address, and phone number in addition to the fee and exchange rate disclosure information as required by RCW 19.230.330 (2)(a). A web site address may be used in lieu of a physical or mailing address for transactions conducted solely over the internet.
(2) For prepaid access transactions the receipt may include the name, address, and telephone number of the authorized delegate, provided that your contact information is provided in or on the prepaid access packaging or on the prepaid access product.
(3) For bill payment transactions, the receipt may include the name, address, and telephone number of the authorized delegate; provided your name accompanies the authorized delegate's information on the receipt.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-200, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-200, filed 6/27/16, effective 8/1/16; WSR 13-24-021, § 208-690-200, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 19.230.310, 2010 c 37. WSR 10-20-123, § 208-690-200, filed 10/5/10, effective 11/5/10.]



PDF208-690-205

What disclosures must I provide to consumers?

(1) Disclosures may be provided electronically.
(2) For all transactions. You must disclose to the consumer prior to the transaction that fraudulent transactions may result in the loss of their money with no recourse.
(3) For virtual currency transactions. When applicable, you must make the following disclosures in a clear and conspicuous manner:
(a) A schedule of all fees and charges you may assess on a transaction, how the fees and charges will be calculated if not set in advance and disclosed, and the timing of the fees and charges.
(b) Whether the product or service provided is insured or guaranteed by an agency of the United States, such as the federal deposit insurance corporation or the securities investor protection corporation or by private insurance against theft or loss, including cyber theft or theft by other means.
(c) A notice that the transfer of virtual currency or digital units is irrevocable and any exception to the irrevocability of transfer.
(d) A notice describing your liability for unauthorized, mistaken, or accidental transfers and, describing the consumer's responsibility for providing notice of such mistake to you, and the general error-resolution rights applicable to any transaction.
(e) A disclosure prior to the transaction that informs the consumer that the nature of virtual currency may lead to an increased risk of fraud or cyber attack and the consumer's virtual currency value may be irretrievably stolen. See also WAC 208-690-270.
(f) The disclosures required in (a) through (e) of this subsection may be disclosed together but must be disclosed separately from any other information required.
(4) For currency exchange transactions. If the currency being sought has limited convertibility, you must provide a disclosure to the consumer indicating the limited convertibility.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-205, filed 6/19/18, effective 8/1/18.]



PDF208-690-210

In addition to the Uniform Money Services Act, what other laws do I have to comply with?

You must ensure you are in compliance with all applicable state and federal laws, rules, and regulations.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-210, filed 6/27/16, effective 8/1/16.]



PDF208-690-220

Restrictions on business name.

The director may deny a request for a proposed business name or trade name if the name is similar to a currently existing licensee name, contains the word bank or any derivative of the word bank, or is otherwise deceptive.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-220, filed 6/27/16, effective 8/1/16.]



PDF208-690-230

How do I use a name other than the company's legal name?

You may use a trade or other name under the following circumstances:
(1) You have input the proposed trade or other name into the NMLS.
(2) You have received approval from the department.
(3)(a) You have clearly and conspicuously disclosed the company's legal name and NMLS number in addition to the trade or other name;
(b) In any electronic environment, including the internet or mobile devices, the clear and conspicuous disclosure required in (a) of this subsection must be disclosed on the home or menu page and on any page on which the consumer enters or approves previously entered payment information.
(4) Your company's legal name appears on any agreements you enter into with consumers.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-230, filed 6/27/16, effective 8/1/16.]



PDF208-690-240

Information security program.

Each licensee shall establish and maintain an information security program to ensure the availability and functionality of the licensee's electronic systems and to protect those systems and any sensitive data stored on those systems from unauthorized access, use, or tampering. The program may be established and maintained by a parent or affiliate as long as the licensee has adopted the program and it is available to the department for review.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-240, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-240, filed 6/27/16, effective 8/1/16.]



PDF208-690-250

Information security program required by the federal Safeguards Rule implementing the Gramm-Leach-Bliley Act (GLBA).

(1) Generally, applicants and licensees must have a written program appropriate to the company's size and complexity, the activity conducted, and the sensitivity of information at issue. The program must ensure the information's security and confidentiality, protect against anticipated threats or hazards to the security or integrity of the information, and protect against unauthorized access to or use of the information.
(2) The information security plan must be maintained as part of your books and records.
(3) For more information access the FTC web site on the Safeguards Rule at: https://www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer-information-complying and see 16 C.F.R. 314.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-250, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-250, filed 6/27/16, effective 8/1/16.]



PDF208-690-260

Consumer financial information privacy under the Gramm-Leach-Bliley Act (GLBA) and Regulation P.

(1) You must comply with GLBA, as amended, and Regulation P. If the GLBA amendment applies to you, you may be able to provide fewer notices regarding your privacy policies.
Privacy policies describe whether and how you share consumers' nonpublic personal information, including personally identifiable financial information, with other entities.
(2) Compliance with GLBA and Regulation P, 12 C.F.R. Part 1016, will be deemed compliance with this subsection.
(3) See GLBA, as amended, and Regulation P at 12 C.F.R. Part 1016 for the required details.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-260, filed 6/27/16, effective 8/1/16.]



PDF208-690-270

Notice to consumers of data breach.

If your data is compromised, you may be subject to chapter 19.255 RCW and may have to provide notices to consumers whose information was acquired. Under certain circumstances notice of the breach may also be required by the attorney general's office.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 16-14-022, § 208-690-270, filed 6/27/16, effective 8/1/16.]



PDF208-690-280

Business resumption plan.

You must have a written plan that details the company's response and recovery to any event that results in damage to or destruction of books and records or a data breach. The plan must be maintained as part of your books and records.
[Statutory Authority: RCW 43.320.040 and 19.230.310. WSR 18-13-108, § 208-690-280, filed 6/19/18, effective 8/1/18; WSR 16-14-022, § 208-690-280, filed 6/27/16, effective 8/1/16.]