G.S. Chapter 53, Article 16B — North Carolina Money Transmitters Act (current)
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Article 16B.
Money Transmitters Act.
§ 53‑208.41. Title.
This act may be cited as the "North Carolina Money Transmitters Act." (2016‑81, s. 1;
2017‑102, s. 46.)
§ 53‑208.42. Definitions.
For purposes of this Article, the following definitions apply:
(1) Applicant. – A person filing an application for a license under this Article.
(2) Authorized delegate. – An entity designated by the licensee under the
provisions of this Article to engage in the business of money transmission on
behalf of a licensee in this State.
(3) Branch office. – Any physical retail location within this State operated by the
licensee or the licensee's authorized delegate at which the licensee engages in
the business of money transmission. For the purposes of this Article, this
includes automated kiosks.
(4) Commissioner. – The Commissioner of Banks of the State of North Carolina.
(5) Control. – The power, directly or indirectly, to direct the management or policy
of the licensee or person subject to this Article, whether through ownership of
securities, by contract, or otherwise. Any person that (i) is a director, general
partner, or executive officer; (ii) directly or indirectly has ownership of or the
power to vote ten percent (10%) or more of a class of outstanding voting
securities; (iii) in the case of a limited liability company, is a managing member;
or (iv) in the case of a partnership, has the right to receive upon dissolution, or
has contributed, ten percent (10%) or more of the capital, is presumed to control
the licensee or person subject to this Article.
(6) Controlling person. – Any person in control of a licensee or person subject to
this Article.
(7) Depository institution. – Any bank, savings association, mutual savings bank,
savings bank, or other institution as defined in Section 3 of the Federal Deposit
Insurance Act and any credit union whose share and deposit accounts are
insured by the National Credit Union Administration under the Federal Credit
Union Act.
(8) Engage in the business of. – For compensation or gain, or in expectation of
compensation or gain, either directly or indirectly, to make available monetary
transmission services to North Carolina consumers for personal, family, or
household purposes.
(9) Executive officer. – The chief executive officer, chief operating officer, chief
financial officer, chief compliance officer, chief technology officer, or any other
individual the Commissioner identifies who exercises significant influence
over, or participates in, major policy making decisions of the applicant or
licensee without regard to title, salary, or compensation.
(10) Licensee. – A person licensed under this Article.
(11) Material litigation. – Any litigation that, according to generally accepted
accounting principles, is deemed significant to an applicant's or licensee's
NC General Statutes - Chapter 53 Article 16B 1
financial health and would be required to be referenced in that entity's annual
audited financial statements, report to shareholders, or similar documents.
(12) Monetary value. – A medium of exchange, whether or not redeemable in
money.
(13) Money transmission. – To engage in the business of any of the following:
a. Sale or issuance of payment instruments or stored value primarily for
personal, family, or household purposes; or
b. Receiving money or monetary value for transmission or holding funds
incidental to transmission within the United States or to locations
abroad by any and all means, including payment instrument, stored
value, wire, facsimile, or electronic transfer, primarily for personal,
family, or household purposes. This includes maintaining control of
virtual currency on behalf of others.
(14) NMLS. – The Nationwide Mortgage Licensing System and Registry or its
successors.
(15) Outstanding transmission obligation. –
a. Any payment instrument or stored value issued by the licensee which
has been sold in the United States directly by the licensee, or any
payment instrument or stored value issued by the licensee which has
been sold by an authorized delegate of the licensee in the United States,
but in either case has not yet been paid or refunded by the licensee.
b. Any money or monetary value received by the licensee for transmission
that has not been remitted to the payee or refunded to the sender.
To the extent that the outstanding transmission obligation was received in
virtual currency, for the purposes of compliance with this Article, the obligation
shall be denominated in the amount or value to be transmitted to the payee.
(16) Payment instrument. – A check, draft, money order, traveler's check, or other
instrument for the transmission or payment of money or monetary value,
whether or not negotiable. The term does not include a credit card voucher,
letter of credit, or any other instrument that is redeemable by the issuer
exclusively in goods or services.
(17) Permissible investments. – One or more of the following, but only to the extent
that they are maintained in an account located in the United States:
a. Cash.
b. Certificates of deposit or other debt obligations of a depository
institution, either domestic or foreign.
c. Bills of exchange or time drafts drawn on and accepted by a commercial
bank, otherwise known as bankers' acceptances, which are eligible for
purchase by member banks of the Federal Reserve System.
d. Any investment bearing a rating of one of the three highest grades as
defined by a nationally recognized organization that rates securities.
e. Investment securities that are obligations of the United States, its
agencies, or instrumentalities or obligations that are guaranteed fully as
to principal and interest of the United States or any obligations of any
state, municipality, or any political subdivision thereof.
NC General Statutes - Chapter 53 Article 16B 2
f. Shares in a money market mutual fund, interest bearing bills or notes or
bonds, debentures, or preferred stock traded on any national securities
exchange or on a national over the counter market, or mutual funds
primarily composed of such securities or a fund composed of one or
more permissible investments as set forth herein.
g. Any demand borrowing agreement or agreements made to a corporation
or a subsidiary of a corporation whose capital stock is listed on a
national exchange.
h. Value of receivables due to the licensee that are no more than 30 days
past due or otherwise doubtful of collection.
i. Virtual currency but only to the extent of outstanding transmission
obligations received by the licensee in like kind virtual currency.
j. Any other investments or security device approved by the
Commissioner.
(18) Person. – Any individual, partnership, limited liability company, limited
partnership, association, joint‑stock association, trust, corporation, or other
group engaged in joint business activities however organized.
(19) Stored value. – Monetary value representing a claim against the issuer that is
stored on an electronic or digital medium and is evidenced by an electronic or
digital record, and that is intended and accepted for use as a means of
redemption for money or monetary value or payment for goods or services. The
term does not include stored value that is redeemable by the issuer exclusively
in goods or services; stored value that is redeemable exclusively in goods or
services limited to transactions involving a defined merchant or location or set
of locations, such as a specific retailer or retail chain, college campus, or
subway system; or program points, miles, or other units issued in connection
with a customer affinity or rewards program, even if there is a secondary market
for the stored value.
(20) Virtual currency. – A digital representation of value that can be digitally traded
and functions as a medium of exchange, a unit of account, or a store of value but
only to the extent defined as stored value under subdivision (19) of this section,
but does not have legal tender status as recognized by the United States
Government. (2016‑81, s. 1; 2017‑102, ss. 14.1(a), 46; 2018‑23, s. 1.)
§ 53‑208.43. License requirement.
(a) No person except those exempt pursuant to G.S. 53‑208.44 shall engage in the business
of money transmission in this State without a license as provided in this Article.
(b) A licensee may conduct its business in this State at one or more locations, directly or
indirectly owned, or through one or more authorized delegates, or both, pursuant to the single
license granted under this Article.
(c) For the purposes of this Article, a person is considered to be engaged in the business of
money transmission in this State if that person solicits or advertises money transmission services
from a website that North Carolina citizens may access in order to enter into those transactions by
electronic means. (2016‑81, s. 1; 2017‑102, s. 46; 2025‑25, s. 29(5).)
§ 53‑208.44. Exemptions.
NC General Statutes - Chapter 53 Article 16B 3
(a) This Article shall not apply to any of the following:
(1) The United States or any department, agency, or instrumentality or by a
contractor thereof.
(2) The United States Postal Service.
(3) The State or any political subdivisions or by a contractor thereof.
(4) Banks, credit unions, savings and loan associations, savings banks, or mutual
banks organized under the laws of any state or the United States.
(5) A person registered as a securities broker‑dealer under federal or state securities
laws to the extent of its operation as a broker‑dealer.
(6) The provision of electronic transfer of government benefits for any federal,
state, or county governmental agency as defined in Regulation E, 12 C.F.R. §
1005 et seq., by a contractor for and on behalf of the United States or any
department, agency, or instrumentality thereof, or any state or any political
subdivisions thereof.
(7) A person that is engaged exclusively in any of the following:
a. Delivering wages or salaries on behalf of employers to employees.
b. Facilitating the payment of payroll taxes to State and federal agencies.
c. Making payments relating to employee benefit plans.
d. Making distribution of other authorized deductions from employees'
wages or salaries.
e. Transmitting other funds on behalf of an employer in connection with
transactions related to employees.
(8) A person appointed by a payee to collect and process payments as the bona fide
agent of the payee, provided the person can demonstrate to the Commissioner
all of the following:
a. There exists a written agreement between the payee and agent directing
the agent to collect and process payments on the payee's behalf.
b. The payee holds the agent out to the public as accepting payments on the
payee's behalf.
c. Payment is treated as received by the payee upon receipt by the agent.
This exemption extends to those otherwise engaged in money transmission as
set forth in G.S. 53‑208.42(13)b., including those transactions conducted in
whole or in part in virtual currency.
(b) Any person who seeks to engage in the business of money transmission in this State
subject to exemption under (a)(7) or (a)(8) of this section shall submit a written request for
verification of exemption to the Commissioner. Such request shall be in a form acceptable to the
Commissioner and shall include a copy of any written agreement and related documentation that is
the basis for the specified exemption.
(c) Licensees may authorize delegates to engage in money transmission on their behalf
subject to this Article subject to an express written agreement, which shall provide the following:
(1) The licensee appoints the person as its delegate with authority to engage in
money transmission on behalf of the licensee in this State.
(2) Neither a licensee nor an authorized delegate may authorize sub‑delegates
without the written consent of the Commissioner.
NC General Statutes - Chapter 53 Article 16B 4
(3) Authorized delegates, in their capacity as agents of the licensee, are subject to
the supervision and regulation by the Commissioner notwithstanding
exemption from licensure.
(4) The licensee shall issue a certificate of authority for each branch office at which
it conducts licensed activities in this State through an authorized delegate,
which shall be posted in public view and read as follows: "Money transmission
on behalf of (licensee) is conducted at this location pursuant to the North
Carolina Money Transmitters Act, N.C.G.S. § 53‑208.41 et seq."
Licensees conducting money transmission subject to this Article are required to maintain full
charge, control, and supervision of any authorized delegate and are responsible for ensuring any
activity undertaken by an authorized delegate on behalf of the licensee is in compliance with this
Article.
(d) The Commissioner may, by rule or by order, exempt from all or part of this Article any
person, transaction, or class of persons or transactions if the Commissioner finds such action to be
in the public interest and that the regulation of such persons or transactions is not necessary for the
purposes of this Article. (2016‑81, s. 1; 2017‑102, ss. 14.1(b), 46.)
§ 53‑208.45. License application.
(a) Applications under this Article shall be filed through the NMLS in a form acceptable to
the Commissioner. To be considered complete, all applications shall be verified by oath or
affirmation of the applicant or a designee thereof and shall contain all of the following:
(1) The legal name, along with any assumed business names, principal address,
contact information, and social security number or taxpayer identification
number of the applicant.
(2) The applicant's form and place of organization, if applicable.
(3) A certificate of good standing from the state in which the applicant was
incorporated, if applicable.
(4) A certificate of authority from the North Carolina Secretary of State to conduct
business in this State, if required by the North Carolina Business Corporations
Act, Chapter 55 of the General Statutes, or other evidence of the applicant's
registration or qualification to do business in this State.
(5) A copy of the applicant's active money service business registration with the
United States Department of Treasury Financial Crimes Enforcement Network.
(6) A detailed description of the organizational structure of the applicant, including
the identity of parents or subsidiaries of the applicant, and the disclosure of
whether any parent or subsidiary is publicly traded on any stock exchange.
(7) A detailed business plan, including a description of the activities conducted by
the applicant, including a history of any existing operations and a description of
the money transmission activities in which the applicant seeks to be engaged in
the State.
(8) A copy of the applicant's policies and procedures, including the anti‑money
laundering compliance program.
(9) A detailed description of the applicant's internal business controls, including
controls specific to information technology and data integrity.
(10) The history of the material civil litigation and a record of any criminal
convictions for the applicant, controlling person, and key management
NC General Statutes - Chapter 53 Article 16B 5
personnel for a 10‑year period prior to the date of the application, including
authorization to perform a federal and State criminal background check.
(11) The name, business and residence address, and employment history for the past
five years for any controlling person and key management personnel.
(12) A sample payment instrument, if applicable, which bears the name and address
or telephone number of the issuer clearly printed on the payment instrument.
(13) If the applicant seeks to engage in money transmission in this State through
authorized delegates, all of the following:
a. A list identifying the proposed authorized delegates, including the
name, mailing address, and other contact information of a representative
of the authorized delegate and associated branch locations.
b. A sample authorized delegate contract.
(14) The name and address of the clearing bank or banks on which the applicant's
payment instruments will be drawn or through which the payment instruments
will be payable.
(15) A copy of the applicant's most recent audited financial statement, including the
balance sheet, statement of income or loss, statement of changes in shareholder
equity, if applicable, and statement of changes in financial position and the
applicant's audited financial statements for the immediately preceding two‑year
period. However, if the applicant is a wholly owned subsidiary of another
corporation, the applicant may submit either the parent corporation's
consolidated audited financial statements for the current year and for the
immediately preceding two‑year period or the parent corporation's Form 10K
reports filed with the United States Securities and Exchange Commission for
the prior three years in lieu of the applicant's financial statements. If the
applicant is a wholly owned subsidiary of a corporation having its principal
place of business outside the United States, similar documentation filed with the
parent corporation's non‑United States regulator may be submitted to satisfy
this subdivision.
(16) Copies of all filings, if any, made by the applicant with the United States
Securities and Exchange Commission, or with a similar regulator in a country
other than the United States, within the year preceding the date of filing of the
application.
(b) Upon request by the Commissioner or the Commissioner's designee, the applicant shall
furnish any additional information necessary to enable the Commissioner to evaluate the
application as required by G.S. 53‑208.50.
(c) The Commissioner may, for good cause shown, waive any requirements of this section
with respect to any application or permit any applicant to submit equivalent information in lieu of
the information required by this section. (2016‑81, s. 1; 2017‑102, s. 46; 2018‑142, s. 10(a).)
§ 53‑208.46. Minimum net worth.
(a) An applicant shall possess and a licensee shall maintain at all times a net worth of not
less than two hundred fifty thousand dollars ($250,000) calculated in accordance with generally
accepted accounting principles.
NC General Statutes - Chapter 53 Article 16B 6
(b) The Commissioner may by order increase the amount of net worth required of an
applicant or licensee if the Commissioner determines additional net worth is necessary to ensure
safe and sound operation based on consideration of the following factors:
(1) The nature and volume of the projected or established business.
(2) The number of locations at or through which money transmission is or will be
conducted.
(3) The amount, nature, quality, and liquidity of assets.
(4) The amount and nature of liabilities.
(5) The history of operations and prospects for earning and retaining income.
(6) The quality of operations and management.
(7) The nature and quality of controlling persons.
(8) The history of compliance with applicable State and federal law.
(9) Any other factors the Commissioner deems relevant. (2016‑81, s. 1; 2017‑102,
s. 46.)
§ 53‑208.47. Surety bond.
(a) Applicants shall be required to post a surety bond with the Commissioner at application
and licensees shall maintain a surety bond in the amount of one hundred fifty thousand dollars
($150,000) to be subsequently adjusted as set forth in subsection (b) of this section.
(b) The surety bond amount required subsequent to initial licensure shall consist of a base
amount of one hundred fifty thousand dollars ($150,000) for money transmission volumes in this
State of no more than one million dollars ($1,000,000). However, if a licensee has transmission
volume in North Carolina in a 12‑month period ending December 31 in excess of one million
dollars ($1,000,000) but less than five million dollars ($5,000,000), then the licensee's bond
amount shall be one hundred seventy five thousand dollars ($175,000); if a licensee has
transmission volume in North Carolina in a 12‑month period ending December 31 in excess of five
million dollars ($5,000,000) but less than ten million dollars ($10,000,000), then the licensee's
bond amount shall be two hundred thousand dollars ($200,000); if a licensee has transmission
volume in North Carolina in a 12‑month period ending December 31 in excess of ten million
dollars ($10,000,000) but less than fifty million dollars ($50,000,000), then the licensee's bond
amount shall be two hundred twenty‑five thousand dollars ($225,000); and if a licensee has
transmission volume in North Carolina in a 12‑month period ending December 31 in excess of fifty
million dollars ($50,000,000), then the licensee's bond amount shall be two hundred fifty thousand
dollars ($250,000).
(c) Any increased surety bond required under subsection (b) of this section shall be filed
with the Commissioner on or before May 31 annually. Failure to obtain the additional surety bond
required is grounds for summary suspension pursuant to G.S. 53‑208.57(d)(2).
(d) The surety bond shall be in a form satisfactory to the Commissioner and shall run to the
State for the benefit of any claimants against the licensee to secure the faithful performance of the
obligations of the licensee with respect to the receipt, handling, transmission, and payment of
money or monetary value in connection with the sale and issuance of payment instruments, stored
value, or transmission of money. The Commissioner has the discretion to require the applicant to
obtain additional insurance coverage to address related cybersecurity risks inherent in the
applicant's business model as it relates to virtual currency transmission and to the extent such risks
are not within the scope of the required surety bond.
NC General Statutes - Chapter 53 Article 16B 7
(e) The aggregate liability of the surety in no event shall exceed the principal sum of the
bond. Claimants against the licensee may themselves bring suit directly on the security bond, or the
Commissioner may bring suit on behalf of claimants, either in one action or in successive actions.
(f) In lieu of a surety bond, the licensee may deposit with the Commissioner, or with any
bank in this State designated by the licensee and approved by the Commissioner, an aggregate
amount, based upon principal amount or market value, whichever is lower, of not less than the
amount of the surety bond or portion thereof, the following:
(1) Unencumbered cash.
(2) Unencumbered interest‑bearing bonds.
(3) Unencumbered notes.
(4) Unencumbered debentures.
(5) Unencumbered obligations of the United States or any agency or
instrumentality thereof, or guaranteed by the United States.
(6) Unencumbered obligations of this State or of any political subdivision of the
State, or guaranteed by this State.
The securities or cash shall be deposited as aforesaid and held to secure the same obligations as
would the surety bond, but the depositor shall be entitled to receive all interest and dividends
thereon, shall have the right, with the approval of the Commissioner, to substitute other securities
for those deposited, and shall be required to do so on written order of the Commissioner made for
good cause shown.
(g) The surety bond shall remain in effect until cancellation, which may occur only after 90
days' written notice to the Commissioner. Cancellation shall not affect any liability incurred or
accrued during that period.
(h) The surety bond shall remain in place for no less than five years after the licensee ceases
money transmission operations in the State. However, notwithstanding this provision, the
Commissioner may permit the surety bond to be reduced or eliminated prior to that time to the
extent that the amount of the licensee's outstanding payment instruments, stored value obligations,
and money transmitted in this State is reduced.
(i) The surety bond proceeds and any cash or other collateral posted as security by a
licensee shall be deemed by operation of law to be held in trust for the benefit of the purchasers and
holders of the licensee's outstanding payment instruments, stored value obligations, and money
transmissions and to the State in the event of the bankruptcy of the licensee. (2016‑81, s. 1;
2017‑102, ss. 14.1(c), 46.)
§ 53‑208.48. Permissible investments and statutory trust.
(a) Except as otherwise provided in this section, each licensee under this Article shall
possess at all times unencumbered permissible investments having an aggregate market value,
calculated in accordance with generally accepted accounting principles, of not less than the
aggregate face amount of all outstanding transmission obligations. This requirement may be
waived by the Commissioner if the dollar volume of a licensee's outstanding transmission
obligations does not exceed the bond or other security devices posted by the licensee pursuant to
G.S. 53-208.47.
(b) Permissible investments, even if commingled with other assets of the licensee, shall be
deemed by operation of law to be held in trust for the benefit of the purchasers and holders of the
licensee's outstanding payment instruments and stored value obligations in the event of the
bankruptcy of the licensee.
NC General Statutes - Chapter 53 Article 16B 8
(c) If the licensee possesses virtual currency as permissible investments under this Article,
the Commissioner may at any time request that the licensee verify, in a manner acceptable to the
Commissioner, aggregate virtual currency transmission obligations outstanding and virtual
currency held as permissible investments, including virtual currency stored offline. (2016‑81, s. 1;
2017‑102, s. 46; 2018‑23, s. 2.)
§ 53‑208.49. Application fees and annual assessment.
(a) Application Fees. Each application for initial licensure shall be accompanied by a
nonrefundable filing fee of one thousand five hundred dollars ($1,500).
(b) Annual Assessment. For the purpose of meeting the cost of regulation under this
Article, each licensee shall pay to the Commissioner an annual assessment as provided in this
subsection. The annual assessment shall consist of a base amount of five thousand dollars ($5,000)
for volumes of no more than one million dollars ($1,000,000) plus an additional sum, calculated on
the transmission dollar volume reported by the licensee pursuant to G.S. 53‑208.53 for the
previous calendar year. The cumulative assessment shall be calculated as follows:
Transmission in U.S. Dollar Volume Per U.S. Dollar
$1,000,001 to $5,000,000 $0.0008
$5,000,001 to $10,000,000 $0.0006
$10,000,001 to $50,000,000 $0.00004
More Than $50,000,000.00 $0.0000006
The Commissioner may collect the assessment provided for in this subsection annually or in
periodic installments as approved by the State Banking Commission. (2016‑81, s. 1; 2017‑102, s.
46.)
§ 53‑208.50. Issuance of license.
(a) Upon receipt of a complete license application, as set forth under G.S. 53‑208.45, the
Commissioner shall investigate the financial condition and responsibility, financial and business
experience, the character and general fitness of the applicant, and any other matters deemed
relevant by the Commissioner. The Commissioner may require additional information and may
require the amendment of the application in the course of the investigation. An applicant's failure
to furnish all required information within 30 days after filing the application or within 30 days of a
request by the Commissioner for additional information may be considered an abandonment of the
application. In the course of the investigation, the Commissioner may conduct an on‑site
examination of the applicant, the reasonable cost of which shall be borne by the applicant.
(b) The Commissioner may only approve an application for licensure when the
Commissioner has determined that all of the following requirements have been satisfied or are
reasonably likely to be satisfied within a reasonable time period as specified by the Commissioner
in the order of approval:
(1) The applicant has satisfied the requirements imposed by this Article;
(2) The applicant's business will be conducted honestly, fairly, and in a manner
commanding the confidence and trust of the community;
(3) The applicant has demonstrated net worth necessary to satisfy the requirements
in accordance with G.S. 53‑208.46;
(4) The applicant has obtained a surety bond in conformance with G.S. 53‑208.47;
(5) That neither the applicant nor any controlling person are identified on the
Specially Designated Nationals and Blocked Persons List prepared by the
NC General Statutes - Chapter 53 Article 16B 9
United States Department of the Treasury or the United States Department of
State subject to Presidential Executive Order No. 13224, Blocking Property and
Prohibiting Transactions with Persons who Commit, Threaten to Commit, or
Support Terrorism;
(6) The controlling persons and key management personnel, as a group, have
degrees of character, competence, and experience which command the
confidence and trust of the community and justify the belief that the applicant
will operate safely, soundly, and in compliance with the law;
(7) The anticipated volume and nature of business projected in the application are
reasonable and indicate a reasonable likelihood of safe and sound operation.
(c) Licenses issued under this Article are perpetual and not assignable. Control of a
licensee shall not be acquired through a stock purchase, merger, or other device without prior
written consent of the Commissioner. The Commissioner shall not give written consent if the
Commissioner finds that any of the grounds for denial, revocation, or suspension as set forth under
G.S. 53‑208.56 are applicable to the acquiring person. (2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.51. Prohibited practices.
No person required to be licensed under this Article shall do any of the following:
(1) Fail to remit all money or monetary value received for transmission pursuant to
G.S. 53‑208.42(13)b., or give instructions committing equivalent money or
monetary value to the person designated by the sender within 10 days after
receipt by the licensee unless otherwise directed by the sender.
(2) Fail to immediately notify the Commissioner in writing if the licensee dishonors
or fails to satisfy any money transmission transaction within the 10 days
following receipt for any reason other than direction by the sender.
(3) Engage in the business of money transmission in the State under any name other
than that under which it is organized or otherwise authorized to do business in
the State.
(4) Fail to comply with the Federal Bank Secrecy Act, 31 U.S.C. § 5311, et seq.,
and 31 C.F.R. Part 1022, including maintenance of active registration with the
United States Department of Treasury Financial Crimes Enforcement Network.
(5) Fail to comply with the Federal Electronic Funds Transfer Act, 12 U.S.C. §
1693, et seq., and Regulation E, 12 C.F.R. § 1005, et seq.
(6) Fail to safeguard identifying information obtained in the course of money
transmission and otherwise comply with the requirements set forth under
G.S. 75‑60, et seq.
(7) Fail to comply with applicable State and federal laws and regulations related to
the business of money transmission.
(8) Use or cause to be published or disseminated any advertising communication
which contains any false, misleading, or deceptive statement or representation.
(9) Engage in unfair, deceptive, or fraudulent practices. (2016‑81, s. 1; 2017‑102,
ss. 14.1(d), 46.)
§ 53‑208.52. Maintenance of records.
(a) Each licensee shall maintain such books, accounts, and other records as the
Commissioner may require for a period of no less than three years unless the Commissioner, by
NC General Statutes - Chapter 53 Article 16B 10
rule, prescribes otherwise for particular types of records. Such records shall be segregated from any
other business in which the licensee is engaged and, at a minimum, include:
(1) A record or records of each payment instrument sold.
(2) A general ledger containing all assets, liability, capital, income, and expense
accounts, which general ledger shall be posted at least monthly.
(3) Settlement sheets received from authorized delegates.
(4) Bank statements and bank reconciliation records.
(5) Records of outstanding transmissions, payment instruments, and stored value.
(6) Records of each payment instrument paid within the three‑year period.
(7) A list of the names and addresses of all of the licensee's proposed authorized
delegates, if any, and a copy of each written agreement in conformance with
G.S. 53‑208.44(c)(1).
(b) Maintenance of the documents required by this section in the form of any digital or
electronic medium shall constitute compliance with this section provided records remain readily
convertible into legible, tangible documents and shall be treated as originals for the purposes of any
examination or investigation conducted pursuant to this Article.
(c) All records required to be maintained shall be secured against unauthorized access and
damage and may be maintained at a location outside this State so long as they are made accessible
to the Commissioner on seven days' written notice.
(d) All records required to be maintained under this Article shall be prepared in accordance
with generally accepted accounting principles, where applicable.
(e) A licensee shall notify the Commissioner of any change in the location of its records
within 10 days following such change. (2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.53. Reporting.
(a) Annual Report. No later than 90 days after the end of the calendar year, licensees shall
file an annual report in a form prescribed by the Commissioner through NMLS, which shall
include:
(1) A copy of its most recent audited consolidated annual financial statement,
including balance sheet, statement of income or loss, statement of changes in
shareholder's equity, if applicable, and statement of changes in financial
position, or, in the case of a licensee that is a wholly owned subsidiary of
another corporation, the consolidated audited annual financial statement of the
parent corporation may be filed in lieu of the licensee's audited financial
statement;
(2) The total amount of outstanding transmission obligations;
(3) Any material changes to any of the information submitted by the licensee on its
original application, which have not been previously reported to the
Commissioner on any other report required to be filed under this Article;
(4) Copies of bank statements and other documentation necessary to document the
existence and quality of the licensee's permissible investments; and
(5) A list of the branch offices at which business regulated by this Article is being
conducted by either the licensee or its authorized delegates.
(b) Quarterly Reports. No later than 60 days after the calendar quarter has ended, licensees
shall file a quarterly call report in a form prescribed by the Commissioner through NMLS, which
shall at a minimum include:
NC General Statutes - Chapter 53 Article 16B 11
(1) The number and dollar volume of money transmission transactions in the State
by activity type; and
(2) The total amount of outstanding transmission obligations.
(c) Other Reports of Condition. A licensee shall submit to the Commissioner through the
NMLS reports of condition and any other reports requested by the Commissioner in order to carry
out the purposes of this Article.
(d) Timely Reporting. – Failure to timely submit any reports required under this section is
grounds for summary suspension pursuant to G.S. 53‑208.57(d)(2). (2016‑81, s. 1; 2017‑102, ss.
14.1(e), 46.)
§ 53‑208.54. Notice of Material Event.
(a) Within 15 days of a change or acquisition of control of a licensee, the licensee shall
provide notice of the event to the Commissioner through NMLS in writing and in a form prescribed
by the Commissioner. The notice shall be accompanied by any information, data, and records
required by the Commissioner.
(b) Within 15 days of the occurrence of any one of the events listed below, a licensee shall
file a written report with the Commissioner through NMLS describing the event and its expected
impact on the licensee's activities in the State:
(1) The filing for bankruptcy or reorganization by the licensee.
(2) The institution of revocation or suspension proceedings against the licensee by
any State or governmental authority with regard to the licensee's money
transmission activities.
(3) Any felony indictment of the licensee or any controlling person or key
management personnel related to money transmission activities.
(4) Any felony conviction of the licensee or any controlling person or key
management personnel related to money transmission activities.
(c) If the information contained in any document filed with the Commissioner or the
NMLS is or becomes inaccurate or incomplete in any material respect, the licensee or applicant
shall within 30 days file a correcting amendment to the information contained in the document.
(2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.55. Examination and investigation authority.
(a) For purposes of initial licensure, suspension, conditioning, revocation, or termination,
or general or specific inquiry, investigation, or examination to determine compliance with this
Article, the Commissioner may access, receive, and use any books, accounts, records, files,
documents, information, or evidence including:
(1) Criminal, civil, and administrative history information;
(2) Personal history and experience information;
(3) Any other documents, information, or evidence the Commissioner deems
relevant to the inquiry, investigation, or examination regardless of the location,
possession, control, or custody of the documents, information, or evidence.
(b) For purposes of investigating violations or complaints arising under this Article, or for
the purposes of examination, the Commissioner may review, investigate, or examine any licensee,
individual, or person subject to this Article in order to carry out the purposes of this Article. The
Commissioner may interview the controlling persons, employees, independent contractors,
delegates, third‑party vendors, and customers of the licensee concerning the licensee's business.
NC General Statutes - Chapter 53 Article 16B 12
The Commissioner may direct, subpoena, or order the person to produce books, accounts, records,
files, and any other documents the Commissioner deems relevant to the inquiry. Any investigation
or examination that, in the opinion of the Commissioner, requires extraordinary review,
investigation, or special examination shall be subject to the actual costs of the additional expenses
and the hourly rate for the staff's time, to be determined annually by the State Banking
Commission.
(c) Each person subject to this Article shall make available to the Commissioner upon
request the books and records relating to the operations of the licensee or person. No person subject
to examination or investigation under this section may knowingly withhold, abstract, remove,
mutilate, destroy, or secrete any books, records, or other information retained in any format. Each
person subject to this Article shall also make available for interview by the Commissioner the
controlling persons, employees, independent contractors, delegates, and third‑party vendors of the
person concerning money transmission subject to this Article.
(d) Each person subject to this Article shall make or compile such reports or prepare other
information as may be directed or requested by the Commissioner in order to carry out the purposes
of this section.
(e) In making any examination or investigation authorized by this Article, the
Commissioner may control access to any documents and records of the person under examination
or investigation. The Commissioner may take possession of the documents and records, or place a
person in exclusive charge of the documents and records in the place where they are usually kept.
During the period of control, no person shall remove or attempt to remove any of the documents
and records except pursuant to a court order or with consent of the Commissioner. Unless the
Commissioner has reasonable grounds to believe the documents or records have been or are at risk
of destruction, the person shall retain access as necessary to conduct its ordinary business.
(f) In order to carry out the purposes of this section, the Commissioner may:
(1) Enter into agreements or relationships with other government officials or
regulatory associations in order to improve efficiencies and reduce regulatory
burden by sharing resources, standardized or uniform methods or procedures,
and records and related information obtained under this section;
(2) Use, hire, contract, or employ analytical systems, methods, or software to
examine or investigate any person subject to this Article;
(3) Accept and rely on examination or investigation reports made by other
government officials, within or without this State;
(4) Accept audit reports made by an independent certified public accountant or
other qualified third‑party auditor for any person subject to this Article and may
incorporate the audit report in the report of examination or investigation.
(2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.56. Licensure authority.
The Commissioner may by order, deny, suspend, revoke, or refuse to issue a license under this
Article, or may restrict or limit the manner in which a licensee or applicant engages in the business
of money transmission, if the Commissioner finds both of the following:
(1) That the order is in the public interest.
(2) Any of the following circumstances apply:
a. Any fact or condition exists that, if it had existed at the time of
application, would have been grounds for denial.
NC General Statutes - Chapter 53 Article 16B 13
b. The licensee or applicant has filed any application, report, or other
document with the Commissioner containing statements that, in light of
the circumstances in which they were made, were false or misleading
with respect to a material fact.
c. The licensee or applicant fails at any time to meet the requirements of
G.S. 53‑208.46, 53‑208.47, or 53‑208.48.
d. A controlling person or key management personnel of the licensee or
applicant has been convicted of any of the following:
1. A misdemeanor in the last 10 years involving fraud, money
laundering, theft or wrongful taking of property, bribery, perjury,
forgery, counterfeiting, extortion, or conspiracy to commit any
of these offenses or involving any financial service or financial
service‑related business.
2. Any felony in the last seven years.
e. The licensee or applicant has violated or failed to comply with any
provision of this Article, rule issued pursuant to this Article, or order of
the Commissioner.
f. The licensee has conducted its business in an unsafe or unsound manner.
g. The licensee or applicant is insolvent, has suspended payment of its
obligations, has made an assignment for the benefit of its creditors, or
has admitted in writing its inability to pay its debts as they become due.
h. The licensee fails to respond to and cooperate fully with notices from
the Commissioner or the Commissioner's designee related to the
scheduling and conducting of an examination or investigation pursuant
to G.S. 53‑208.55.
i. The licensee or applicant fails to respond to inquiries from the
Commissioner or the Commissioner's designee regarding any
complaints filed, which allege or involve violation of this Article.
j. The licensee fails to make any report required by this Article.
k. The licensee or applicant is permanently or temporarily enjoined by any
court of competent jurisdiction from engaging in or continuing any
conduct or practice involving any aspect of the money transmission
business.
l. The licensee or applicant is the subject of an order entered within the
past five years by the authority of any state or federal agency with
jurisdiction over the business of money transmission. (2016‑81, s. 1;
2017‑102, s. 46; 2018‑142, s. 10(b).)
§ 53‑208.57. Disciplinary authority.
(a) Unless otherwise provided, all administrative actions and hearings conducted pursuant
to this Article shall proceed in accordance with Article 3A of Chapter 150B of the General Statutes.
(b) Upon issuance of any summary order permitted under this Article the Commissioner
shall promptly notify the person subject to the order that the order has been entered and the reasons
for the order. Within 20 days of receiving notice of the order, the person subject to the order may
request in writing a hearing before the Commissioner. Upon receipt of such a request, the
NC General Statutes - Chapter 53 Article 16B 14
Commissioner shall calendar a hearing within 15 days. If a licensee does not request a hearing, the
order will remain in effect unless it is modified or vacated by the Commissioner.
(c) The Commissioner may by order:
(1) Impose a civil money penalty upon any person required to be licensed under this
Article for any violation of or failure to comply with this Article or any order of
the Commissioner in an amount specified by the Commissioner, not to exceed
five thousand dollars ($5,000) for each violation or, in the case of a continuing
violation, one thousand dollars ($1,000) for each day that the violation
continues. Each violation of or failure to comply with this Article shall be a
separate and distinct violation. All civil money penalties collected under this
Article shall be paid to the Civil Penalty and Forfeiture Fund in accordance with
G.S. 115C‑457.2.
(2) Require that any person required to be licensed under this Article to disgorge
and pay to the sender any amounts that were not remitted or refunded in
violation of G.S. 53‑208.51(1).
(d) In addition to the summary suspension procedures authorized by G.S. 150B‑3(c), if the
Commissioner has reason to believe that a licensee or person subject to this Article may have
violated or failed to comply with any provision of this Article and has reason to believe that such
violation or failure to comply presents an imminent threat to the public, the Commissioner may:
(1) Summarily order the licensee or person subject to this Article to cease and desist
from any harmful activities or violations of this Article;
(2) Summarily suspend the license of a licensee under this Article.
(e) When a licensee is subject to disciplinary action under this Article, the licensee, with
the consent and approval of the Commissioner, may surrender the license and all the rights and
privileges pertaining to it. A person who surrenders a license shall not be eligible for or submit any
application for licensure under this Article during any period specified by the Commissioner.
(f) If it appears to the Commissioner that any person has committed or is about to commit a
violation of any provision of this Article or of any rule or order of the Commission, the
Commission may apply to Wake County Superior Court for an order enjoining the person from
violating or continuing to violate this Article or any rule, regulation, or order and for injunctive or
such other relief as the nature of the case may require.
(g) The requirements of this Article apply to any person who seeks to avoid its application
by any device, subterfuge, or pretense whatsoever, including structuring a transaction in a manner
to avoid classification of the transaction as money transmission.
(h) The Commissioner, in the exercise of reasonable judgment, may compromise, settle,
and collect civil penalties with any person for violations of any provision of this Article, or of any
rule, regulation, or order issued or promulgated pursuant to this Article. (2016‑81, s. 1; 2017‑102,
ss. 14.1(f), 46.)
§ 53‑208.58. Criminal penalties.
(a) Any person who knowingly and willfully violates any provision of this Article for
which a penalty is not specifically provided is guilty of a Class 1 misdemeanor.
(b) Any person who knowingly and willfully makes a material, false statement in any
document filed or required to be filed under this Article with the intent to deceive the recipient of
the document is guilty of a Class 1 misdemeanor.
NC General Statutes - Chapter 53 Article 16B 15
(c) Any person who knowingly and willfully engages in the business of money
transmission without a license as provided herein shall be guilty of a Class 1 misdemeanor.
(2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.59. Confidentiality.
(a) Notwithstanding any other provision of law, all information or reports obtained by the
Commissioner from an applicant, licensee, or authorized delegate, whether obtained through
reports, applications, examination, audits, investigation, or otherwise, including (i) all information
contained in or related to examination, investigation, operating, or condition reports prepared by,
on behalf of, or for the use of the Commissioner; and (ii) financial statements, balance sheets, or
authorized delegate information are subject to confidential treatment as set forth under
G.S. 53C‑2‑7.
(b) The Commissioner is authorized to enter agreements or sharing arrangements with
other governmental agencies or associations representing governmental agencies and may share
otherwise confidential information pursuant to these written agreements, but only to the extent
permitted by G.S. 53C‑2‑7(d). Information shared pursuant to the agreements authorized under
this section shall retain any and all applicable privilege and related confidentiality protections
provided by State or federal law.
(c) Nothing in this section shall prohibit the Commissioner from releasing to the public a
list of persons licensed under this Article or aggregated financial data on those licensees.
(2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.60. Rules.
(a) The State Banking Commission may adopt rules necessary to implement this Article.
(b) Pursuant to G.S. 53C‑2‑6(b), any person aggrieved by any rule or order of the
Commissioner under this Act may appeal to the State Banking Commission for review upon
providing notice in writing within 20 days after the act complained of is adopted, issued, or done.
Notwithstanding any other provision of law, any aggrieved party to a decision of the State Banking
Commission shall be entitled to petition for judicial review pursuant to G.S. 53C‑2‑6(b).
(2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.61. Service of process.
(a) Any person subject to this Article is deemed to have:
(1) Consented to the jurisdiction of the courts of this State for all actions arising
under this Article; and
(2) Appointed the Secretary of State as such person's agent for the purpose of
accepting service of process in any action, suit, or proceeding that may arise
under this Article.
(b) For the purposes of this Article, the Commissioner shall be deemed to have complied
with the requirements of law concerning service of process upon mailing by certified mail any
notice required or permitted to a person subject to this Article, postage prepaid and addressed to the
last known address on file with the Commissioner. (2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.62. Commissioner's participation in nationwide registry.
(a) The Commissioner may require all persons subject to this Article to be licensed through
the NMLS, and upon issuing this requirement, the Commissioner shall establish a reasonable
NC General Statutes - Chapter 53 Article 16B 16
transition period. In order to carry out these requirements, the Commissioner may participate in the
NMLS.
(b) The Commissioner may establish relationships or contracts with the NMLS or other
entities designated by the NMLS to collect and maintain records and process transaction fees or
other fees related to licensees or other persons subject to this Article.
(c) For the purpose of participating in the NMLS, the Commissioner may waive or modify,
in whole or in part, any or all of the requirements as reasonably necessary to participate in the
NMLS. (2016‑81, s. 1; 2017‑102, s. 46; 2018‑142, s. 10(c).)
§ 53‑208.63. Severability.
Should any provision, sentence, clause, section, or part of this Article for any reason be held
unconstitutional, illegal, or invalid, such unconstitutionality, illegality, or invalidity shall not affect
or impair any of the remaining provisions, sentences, clauses, sections, or parts of this Article.
(2016‑81, s. 1; 2017‑102, s. 46.)
§ 53‑208.64. Transition.
Any person who holds in good standing a money transmitters license issued by the
Commissioner on or after November 1, 2014, may continue to engage in such business subject to
the requirements of this Article. (2016‑81, s. 1; 2017‑102, s. 46.)
NC General Statutes - Chapter 53 Article 16B 17