TITLE 7. BANKING AND SECURITIES
PART 1. FINANCE COMMISSION OF TEXAS
(a) Does this section apply to me?
(1) This section applies if you are a retailer, wholesaler or service provider and in the ordinary course of business:
(A) accept the currency of a foreign country or government as payment for your goods or services;
(B) in connection with the transaction, make or give change in the currency of a different foreign country or government; and
(C) qualify for an exemption under Finance Code, §152.102(e).
(2) This section does not apply, and you do not conduct currency exchange within the meaning of Finance Code, Chapter 152, or need a currency exchange license under the Act, if you accept payment for your goods or services in a foreign currency or a check denominated in a foreign currency and any change you make or give in connection with the transaction is in the same foreign currency as the payment you receive.
(b) To request an exemption, you must submit a letter to the commissioner that fully explains your business and is accompanied by a statement, signed and sworn to before a notary, affirming that none of the disqualifying conditions set out in Finance Code, §152.102(e)(1) - (5), apply to you. For purposes of the subsection (e)(4) regarding disqualification, you are considered to be engaged in the "business of cashing checks, drafts or other payment instruments" if, in the 12 month period immediately preceding the filing of the application for exemption, you derived more than 1.00% of your gross receipts, directly or indirectly, from fees or other consideration you charged, earned, or imputed from cashing checks, drafts or other monetary instruments.
(c) The commissioner may require you to provide additional information or otherwise investigate or examine you to verify your eligibility for the exemption.
(d) The commissioner may grant the exemption if the commissioner determines that you are eligible and the exemption is in the public interest.
Source: The provisions of this §33.7 adopted to be effective August 31, 2006, 31 TexReg 6643; amended to be effective May 12, 2022, 47 TexReg 2735; amended to be effective November 16, 2023, 48 TexReg 6584.
(a) Does this section apply to me? This section applies if you applied for a new money transmission or currency exchange license under Finance Code, Chapter 152, and you believe that the department failed to comply with the application processing times specified in Finance Code §152.106.
(b) What does "promptly" mean for purposes of Finance Code, §152.106(a) and this rule? "Promptly" means on or before the 30th day after the date the department receives your application.
(c) May I file a complaint? Yes. If the department does not process your application for a new money transmission or currency exchange license within the time periods specified in Finance Code §152.106(a), you may file a written complaint with the banking commissioner. The complaint must set out the facts regarding the delay and the specific relief you seek. The department must receive your complaint on or before the 30th day after the date the commissioner approves or denies your license application.
(d) How will the banking commissioner evaluate my complaint?
(1) The department division responsible for complying with the applicable time period must submit a written response to the banking commissioner regarding your complaint that includes any facts on which the division relies to show that good cause existed for exceeding the applicable time period.
(2) The banking commissioner will review your written complaint and the division's response. If the commissioner deems it necessary, a hearing may be held to take evidence on the matter.
(3) The banking commissioner will determine, based upon your complaint and the division's response, if the department exceeded the applicable time period and, if so, whether the responsible division established good cause for the delay.
(e) When will the banking commissioner notify me of the decision? The banking commissioner will notify you of the decision regarding your complaint on or before the 60th day after the date the commissioner receives your written complaint. The commissioner's decision is final and may not be appealed.
(f) What happens if the banking commissioner decides in my favor? If the banking commissioner decides that the department exceeded the applicable time period without good cause, the department will reimburse you all of your application fees.
(g) Does the banking commissioner's decision regarding my complaint affect the decision on my application? No. A decision in your favor under this section does not affect any decision by the banking commissioner to grant or deny your license application. The decision to grant or deny your license application is based upon applicable substantive law without regard to whether the department timely processed your application.
Source: The provisions of this §33.15 adopted to be effective May 18, 2006, 31 TexReg 3869; amended to be effective January 4, 2018, 42 TexReg 7581; amended to be effective November 7, 2019, 44 TexReg 6522, amended to be effective November 16, 2023, 48 TexReg 6584.
(a) Does this section apply to me? This section applies if you hold a money transmission or currency exchange license issued under Finance Code, Chapter 152, or are an applicant for a new money transmission or currency exchange license, as applicable. This section also applies if you are a person other than a license holder or applicant and are investigated under the authority of Finance Code, §152.056.
(b) Definitions. The following words and terms, when used in this section, have the following meanings unless the context clearly indicates otherwise.
(1) "Annual Assessment" means the fee assessed annually to pay the costs incurred by the department to examine a license holder and administer Finance Code, Chapter 152, including the annual license fee required by Finance Code, §152.107(d)(1).
(2) "Examination" means the process, either by on-site or off-site review, of evaluating the books and records of a license holder under the authority of Finance Code, §152.057, relating to its money services activities. For purposes of this section, the term does not include an investigation conducted under the authority of Finance Code, §§152.056 or 152.106.
(c) What provisions of Finance Code, Chapter 152, authorize the fees, assessments, and reimbursements required under this section? The fees, assessments, and reimbursements established by or required under this section are authorized by one or more of the following provisions of Finance Code, Chapter 152: §§152.052(b)(1), 152.056(e), 152.107(d)(1), 152.104(d), and 152.151(b)(2).
(d) What fees must I pay to obtain a new license?
(1) You must pay a $10,000 application fee to obtain a new money transmission license or a $5,000 application fee to obtain a currency exchange license. If your application is accepted for processing pursuant to Finance Code, §152.106, your application fee will be nonrefundable. You may also be required to pay the following additional fees:
(A) If the commissioner determines that it is necessary to conduct an on-site investigation of your business, you must pay a non-refundable investigation fee at a rate of $75 per hour for each department examiner required to conduct the investigation and all associated travel expenses;
(B) If the commissioner determines that it is necessary to employ a third-party screening service to assist with the investigation of your license application, you must pay the department for the reasonable costs for the third-party investigation; and
(C) If the commissioner determines it is necessary to perform background checks using fingerprint identification records, you must either submit payment for the costs of this service at the time you file your application or pay the department upon request.
(2) The commissioner may reduce the fees required under paragraph (1) of this subsection, if the commissioner determines that a lesser amount than would otherwise be collected is necessary to administer and enforce Finance Code, Chapter 152, and this chapter.
(e) What fees must I pay to maintain my money transmission or currency exchange license? You must pay your annual assessment. Subject to paragraph (3) of this subsection, the amount of your annual assessment is determined based on the total annual dollar amount of your Texas money transmission and/or currency exchange transactions, as applicable, as reflected on your most recent annual report filed with the department under Finance Code, §152.107(d)(2).
(1) If you hold a currency exchange license, you must pay the annual assessment specified in the following table:
Annual Assessment Fee Schedule for CEX License Holders:
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If the calculation result is greater than $21,250, your annual assessment is $21,250.
(2) If you hold a money transmission license, you must pay the annual assessment specified in the following table:
Annual Assessment Fee Schedule for MT License Holders:
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If the calculation result is greater than $21,250, your annual assessment is $21,250.
(3) If you are a new license holder and have not yet filed your first annual report under Finance Code, §152.107(d)(2), you must pay an examination fee of $75 per hour for each examiner and all associated travel expenses for an examination.
(f) What fees must I pay in connection with a department investigation?
(1) If the commissioner considers it necessary or appropriate to investigate you or another person in order to administer and enforce Finance Code, Chapter 152, as authorized under §152.056, you or the investigated person must pay the department an investigation fee calculated at a rate of $75.00 per employee hour for the investigation and all associated travel expenses.
(2) If the commissioner determines that it is necessary to employ a third-party screening service to assist with an investigation, you must pay the department for the costs incurred for the third-party investigation.
(3) If the commissioner determines it is necessary to perform background checks using fingerprint identification records in an investigation, you must pay the department the costs incurred for this service.
(g) What fees must I pay in connection with a proposed change of control of my money transmission or currency exchange business?
(1) You must pay a non-refundable $1,000 fee at the time you file an application requesting approval of your proposed change of control.
(2) You must pay a non-refundable $500 fee to obtain the department's prior determination of whether a person would be considered a person in control and whether a change of control application must be filed. If the department determines that a change of control application is required, the prior determination fee will be applied to the fee required under paragraph (1) of this subsection.
(3) If the department's review of your change of control application or prior determination request requires more than eight employee hours, you must pay an additional review fee of $75 per employee hour for every hour in excess of eight hours.
(4) The commissioner may reduce the filing fees described in paragraph (1) or (2) of this subsection, if the commissioner determines that a lesser amount than would otherwise be collected is necessary to administer and enforce Finance Code, Chapter 152, and this chapter.
(h) What other fees must I pay?
(1) If the department does not receive your completed annual report on or before the due date prescribed by the commissioner under Finance Code, §152.107, you must pay a late fee of $100 per day for each business day after the due date that the department does not receive your completed annual report.
(2) If more than one examination is required in the same fiscal year because of your failure to comply with Finance Code, Chapter 152, this chapter, or a department directive, you must pay for the additional examination at a rate of $75 per hour for each examiner required to conduct the additional examination and all associated travel expenses. A fiscal year is the 12-month period from September 1st of one year to August 31st of the following year.
(3) If the department travels out-of-state to conduct your examination, you must pay for all associated travel expenses.
(4) If the commissioner determines it is necessary to conduct an on-site examination of your authorized delegate to ensure your compliance with Finance Code, Chapter 152, you must pay an examination fee of $75 per hour for each examiner and any associated travel expenses.
(i) How and when do I need to pay for the fees required by this section?
(1) You must pay the license application fees required under subsection (d)(1) and (2) of this section at the time you file your application for a license.
(2) The department will bill you by written invoice for any investigation and third-party screening service fees under subsection (d)(1)(A), (B), or (C) of this section. You must pay the fees within 10 days of receipt of the department's written invoice.
(3) Your annual assessment required under subsection (e) of this section may be billed in quarterly or fewer installments in such periodically adjusted amounts as reasonably necessary to pay for the costs of examination and to administer Finance Code, Chapter 152. You must pay the annual assessment fee by ACH debit, or by another method if directed to do so by the department. At least 15 days prior to the scheduled ACH transfer, the department will send you a notice specifying the amount of the payment due and the date the department will initiate payment by ACH debit. The commissioner may decrease your annual assessment if it is determined that a lesser amount than would otherwise be collected is necessary to administer the Act.
(4) You must pay the investigation fee required under subsection (f) of this section within 10 days of receipt of the department's written invoice.
(5) You must pay the filing fees required by subsection (g) of this section at the time you file your proposed change of control or prior determination request. You must pay any required additional fees within 10 days of receipt of the department's written invoice.
(6) If you owe a late fee as provided by subsection (h)(1) of this section, you must pay this fee immediately upon receipt of the department's written invoice.
(7) The department will bill you for any additional examination fees required under subsection (h)(2), (3) or (4) of this section by written invoice. You must pay this additional examination fee within 10 days of receipt of the department's written invoice.
(8) A fee is considered paid as of the date the department receives payment.
(j) What if I cannot afford the annual assessment?
(1) This subsection applies only if you hold a currency exchange license. If you are experiencing financial difficulties, you may be able to obtain a temporary reduction in the amount of your annual assessment for one year by meeting the requirements of this subsection.
(2) To request a reduction in your annual assessment, you must file a written application as described in paragraph (2)(A) of this subsection and the commissioner must find that your application satisfies the requirements described in paragraph (2)(B) of this subsection. If the commissioner decides to reduce your annual assessment, the commissioner has discretion to determine the amount of the reduction.
(A) To request a reduction in your annual assessment, you must:
(i) file a written application with the department not later than 10 days before the date the current annual assessment is due, accompanied by a written business recovery plan and other supporting documentation sufficient to demonstrate that you satisfy each factor described in paragraph (2)(B) of this subsection; and
(ii) file any additional documentation the department requests not later than the seventh day after the date you receive the written request.
(B) The commissioner will not reduce your annual assessment unless the commissioner finds, based on your application and supporting documentation, that:
(i) Your payment of the full assessment will cause you to become financially insolvent, and your current or impending financial condition is temporary and you reasonably expect to have the ability to pay your annual assessment in full by at least the third year after the year in which your request is made, based on a written business recovery plan that is reasonable and attainable; or
(ii) your business is temporarily closed during the annual assessment period and you have conducted no currency exchange activities during that period.
Source: The provisions of this §33.27 adopted to be effective August 31, 2006, 31 TexReg 6643; amended to be effective November 10, 2011, 36 TexReg 7508; amended to be effective January 2, 2014, 38 TexReg 9486; amended to be effective September 4, 2014, 39 TexReg 6827; amended to be effective January 4, 2018, 42 TexReg 7581; amended to be effective November 7, 2019, 44 TexReg 6522; amended to be effective July 12, 2020, 45 TexReg 4499; amended to be effective May 12, 2022, 47 TexReg 2735; amended to be effective November 16, 2023, 48 TexReg 6584.
(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) "Cybersecurity incident" means any observed occurrence in an information system, whether maintained by you or by an affiliate or third party service provider at your direction, that:
(A) jeopardizes the cybersecurity of the information system or the information the system processes, stores or transmits; or
(B) violates the security policies, security procedures or acceptable use policies of the information system owner to the extent such occurrence results from unauthorized or malicious activity.
(2) "Information system" means a set of applications, services, information technology assets or other information-handling components organized for the collection, processing, maintenance, use, sharing, dissemination or disposition of electronic information, including the operating environment as well as any specialized system such as electronic payment systems, industrial/process control systems, telephone switching and private branch exchange systems and environmental control systems.
(3) "You" means a holder of a money transmission or currency exchange license issued under Finance Code, Chapter 152.
(b) Notice required. You must notify the banking commissioner and submit the information required by subsection (c) of this section as soon as practicable but prior to customer notification, and not later than 15 days following your determination that a cybersecurity incident regarding your information system will likely:
(1) require you to submit a notice or report to another state or federal regulatory or law enforcement agency or to a self-regulatory body other than the notice required by this section;
(2) require you to provide a data breach notification to any of your customers under applicable state or federal law, including Business and Commerce Code, §521.053, or a similar law of another state; or
(3) substantively impact your ability to effect transactions on behalf of your customers, accurately report transactions to your customers, or otherwise conduct your business.
(c) The notice required by subsection (b) of this section must include, to the extent known at the time of submission:
(1) a brief description of the cybersecurity incident, including the approximate date of the incident, the date the incident was discovered, and the nature of any data that may have been illegally obtained or accessed;
(2) subject to subsection (d) of this section, a list of the state and federal regulatory agencies, self-regulatory bodies, and foreign regulatory agencies to whom you have provided or will provide notice of the incident; and
(3) the name, address, telephone number, and email address of your employee or agent from whom additional information may be obtained regarding the incident.
(d) Omission of certain information. The filing of a suspicious activity report (SAR) related to the cybersecurity incident under applicable federal law constitutes a notice described by subsection (b)(1) of this section. However, you should not reference or mention the filing of a SAR in the notice filed with the commissioner.
(e) Incident response plan. The notice requirement imposed by this section must be incorporated into the written incident response plan that you maintain as part of your information security program.
Source: The provisions of this §33.30 adopted to be effective January 2, 2020, 44 TexReg 8238; amended to be effective November 16, 2023, 48 TexReg 6584.
(a) Does this section apply to me? This section applies if you hold a license issued by the department under Finance Code, Chapter 152, or are the authorized delegate of a license holder, as applicable, and you conduct currency exchange transactions.
(b) What are the general recordkeeping requirements?
(1) As a general matter, you must maintain:
(A) records of all filings made, and that contain all information required, under applicable federal laws and regulations, including the BSA and 31 CFR Chapter X;
(B) in addition to the records required under Finance Code, Chapter 152, the records required under this section related specifically to currency exchange transactions; and
(C) records sufficient to enable you to file accurate and complete reports with the commissioner or department in accordance with Finance Code, Chapter 152 and Chapter 33 of this title (relating to Money Services Businesses).
(2) You must obtain and retain the information required under this section in a log or by another means of retention that allows the information to be readily retrieved. In addition, you must:
(A) maintain your records in such a manner that you can identify and make available to the department the records related to your Texas transaction activity, and separately account for your Texas transaction activity; and
(B) make your records available to the department within the time period reasonably requested.
(c) What specific records must I keep related to currency exchange?
(1) With respect to currency exchange transactions in an amount in excess of $1,000, you must keep a record for each transaction that contains:
(A) the customer and transaction information required under 31 CFR §1022.410(b)(3), provided that, if your customer does not have a taxpayer identification number (e.g., social security, employee identification number) or passport number and is an alien, you may provide the number and description of an alternate valid entry document issued by a U.S. Federal or state government, such as a border crossing card; and
(B) the specific identifying information (number, type, issuer) of a document that contains the name and a photograph of your customer and that is customarily acceptable within the banking community as means of identification when cashing checks for nondepositors;
(C) your customer's date of birth;
(D) the rate of exchange;
(E) the amount of any fee charged for the transaction;
(F) the location of the office where the transaction is conducted;
(G) information sufficient to identify your employee or representative who conducts the transaction, such as initials, unique employee or representative code, or other appropriate identifier and a corresponding legend, if necessary; and
(H) the unique number of the receipt required under §33.33 of this title (relating to Currency Exchange Receipts).
(2) With respect to a transaction subject to paragraph (1) of this subsection, you must ask your customer whether the customer is conducting the transaction on the customer's own behalf or on behalf of another person (individual or business). If your customer is conducting the transaction on behalf of another person, you must, in addition to the information required under paragraph (1)(A)-(H) of this subsection, obtain and record the name and address of the other person together with appropriate identification for the other person, such as taxpayer identification, passport, or alien registration number.
(3) With respect to currency exchange transactions in an amount of $1,000 or less, you must keep a record for each transaction that contains:
(A) the date and amount of the transaction;
(B) the currency names and total amount of each currency;
(C) the location of the office where the transaction is conducted;
(D) the rate of exchange; and
(E) the amount of fee charged for the transaction.
(d) May I obtain a waiver of the recordkeeping requirements? The commissioner may waive any requirement of this section upon a showing of good cause if the commissioner determines that:
(1) you maintain records sufficient for the department to examine your currency exchange business; and
(2) the imposition of the requirement would cause an undue burden on you and conformity with the requirement would not significantly advance the state's interest under Finance Code, Chapter 152.
Source: The provisions of this §33.31 adopted to be effective August 31, 2006, 31 TexReg 6643; amended to be effective July 8, 2010, 35 TexReg 5805; amended to be effective May 5, 2011, 36 TexReg 2724; amended to be effective July 5, 2018, 43 TexReg 4452; amended to be effective November 16, 2023, 48 TexReg 6584.
(a) Does this section apply to me? This section applies if you hold a license issued by the department under Finance Code, Chapter 152, or are the authorized delegate of a license holder, as applicable, and you conduct currency exchange transactions.
(b) Must I issue a receipt in connection with the currency exchange transactions I conduct?
(1) For purposes of this section, "receipt" means a receipt, electronic record or other written confirmation.
(2) With respect to a currency exchange transaction in an amount in excess of $1,000, you must issue a receipt for each transaction that:
(A) can be linked to the exchange transaction records required under §33.31(c)(1) and (2) of this title (relating to What Records Must I Keep Related to Currency Exchange Transactions?); and
(B) contains:
(i) the name of your licensed business and the business address or telephone number;
(ii) the unique transaction or identification number;
(iii) the date and amount of the transaction;
(iv) the currency names and total amount of each currency;
(v) the rate of exchange; and
(vi) the amount of fee charged for the transaction;
(3) With respect to a currency exchange transaction you conduct with another financial institution as that term is defined in 31 C.F.R. §1010.100(t) or with a financial institution located outside the United States, you must obtain a contemporaneous receipt for each transaction, regardless of where the transaction is conducted. If the other financial institution is a money services business as that term is defined in 31 C.F.R. §1010.100(ff), or a money services business or financial institution located outside the United States, the receipt must contain:
(A) the date and amount of the transaction;
(B) the currency names and total amount of each currency;
(C) the rate of exchange;
(D) the name and address of the money services business issuing the receipt; and
(E) information sufficient to identify the employee or representative who conducts the transaction for the entity issuing the receipt, such as initials, unique employee or representative code, or other appropriate identifier.
Source: The provisions of this §33.33 adopted to be effective August 31, 2006, 31 TexReg 6643; amended to be effective July 8, 2010, 35 TexReg 5805; amended to be effective May 5, 2011, 36 TexReg 2724; amended to be effective March 7, 2013, 38 TexReg 1357; amended to be effective May 12, 2022, 47 TexReg 2735; amended to be effective November 16, 2023, 48 TexReg 6584.
(a) Does this section apply to me? This section applies to you if you hold a money transmission license issued by the department under Finance Code, Chapter 152, or are the authorized delegate of a license holder, as applicable.
(b) What are the general recordkeeping requirements?
(1) As a general matter, you must maintain:
(A) records of all filings made, and that contain all information required, under applicable federal laws and regulations, including the Bank Secrecy Act and 31 CFR Chapter X (collectively BSA);
(B) in addition to the records required under Finance Code, Chapter 152, the records required in this section related to specific types of money transmission transactions; and
(C) records sufficient to enable you to file accurate and complete reports with the commissioner or department in accordance with Finance Code, Chapter 152 and Chapter 33 of this title (relating to Money Services Businesses).
(2) You must obtain and retain the information required under this section in a log or by another means of retention that allows the information to be readily retrieved. In addition, you must:
(A) maintain your records in such a manner that you can identify and make available to the department the records related to your Texas transaction activity, and separately account for your Texas transaction activity; and
(B) make your records available to the department within the time period reasonably requested.
(3) If the BSA requires your authorized delegate to obtain, record and maintain information in connection with transactions conducted as your authorized sales representative, you shall, upon request by the department, arrange with the authorized delegate to have the records made available to the department. For example, the BSA requires your authorized delegate to maintain records related to the sale of travelers checks issued by you because your authorized delegate, as seller, is the person that actually receives currency. The department may require you to arrange for the production of those records for examination or as otherwise necessary or, alternatively, obtain the records directly from your authorized delegate.
(4) If you exchange currency in connection with a money transmission transaction subject to this section, you must comply with the recordkeeping requirements of this section and not the requirements of §33.31 of this title (relating to Currency Exchange Recordkeeping).
(c) What specific records must I keep related to the sale of payment instruments?
(1) This subsection applies to transactions, including third-party bill paying transactions, in which you issue or sell, either as a license holder or the authorized delegate of a license holder, as applicable, travelers checks, money orders, checks or similar payment instruments to one purchaser for $3,000 or more in currency.
(2) You must keep a record for each transaction that contains the customer and transaction information required under 31 CFR §1010.415(a)(2) and (b).
(d) What specific records must I keep related to the issuance and sale of stored value products?
(1) This subsection applies to transactions in which you issue or sell, as a license holder or the authorized delegate of a license holder, as applicable, stored value products (e.g., cards, devices, services, digital wallets/e-wallets) in any amount for currency or an instrument payable in currency.
(2) You must maintain transaction records regarding each stored value transaction that are appropriate for your business activities and the type of stored value product you issue or sell. The records must be sufficient to enable the department to determine the volume of your stored value transactions and the amount of your outstanding stored value liability.
(e) What specific records must I keep related to transmission of funds transactions?
(1) This subsection applies to transactions, including third-party bill paying transactions, in which you, either as a license holder or the authorized delegate of a license holder, as applicable:
(A) receive money from a sender for transmission to the sender's designated recipient and the sender pays for or otherwise funds the transmission with currency, an instrument payable in currency, such as a check or money order, or a credit card; or
(B) receive transmitted funds and pay the designated recipient with currency or an instrument payable in currency.
(2) The requirements of this subsection do not apply to a transmission of funds transaction governed by the Electronic Fund Transfer Act of 1978 (title XX, Pub. L. 950630, 92 Stat. 3728, 15 USC 1693, et. seq.), as well as any other funds transfers that are made through an automated clearing house, an automated teller machine, or a point-of-sale system within the meaning of 31 CFR §1010.100(w).
(3) If a transmission of funds otherwise subject to this subsection is funded by a credit card, you must obtain and record only the information required under the applicable provisions of 31 CFR §1010.410(e).
(4) For purposes of paragraph (5) of this subsection, "identifying number" means the taxpayer identification number (e.g., social security, employee identification number) or passport number of your customer or the person on whose behalf your customer conducts the transaction, as applicable, or, if your customer or other person has no such number and is an alien, then the number of an alien identification card or other official document evidencing foreign nationality or residence, such as a foreign driver's license or foreign voter registration card.
(5) With respect to a transmission transaction in an amount of $3,000 or more, you must keep a record for each transaction that contains:
(A) for an in-person transaction in which your customer is the sender and orders the transaction on the customer's own behalf or on behalf of another person:
(i) the customer and transaction information required under 31 CFR §1010.410(e)(1)(i) and (e)(2)(i), except that you must review or record, as applicable:
(I) an identifying number for your customer and, if applicable, the person on whose behalf your customer is conducting the transaction;
(II) a photograph identification of your customer;
(III) the identity of the issuer of the photograph identification;
(IV) the recipient's name; and
(V) the name of the recipient's bank and bank account number if the funds are to be deposited in the recipient's bank account;
(ii) your customer's date of birth;
(iii) the time of day the transaction is conducted;
(iv) the location of the office where the transaction is conducted;
(v) the method of payment (e.g., cash, check, credit card) unless cash is the only method of payment;
(vi) the amount of any fee charged for the transaction; and
(vii) the unique number of the receipt required under §33.37 of this title (relating to What Receipts Must I Issue Related to Money Transmission Transactions?).
(B) for a not-in person transaction, for example, a transaction ordered by phone, fax, mail or online, in which your customer is the sender and orders the transaction on the customer's own behalf or on behalf of another person:
(i) the customer and transaction information required under 31 CFR §1010.410(e)(1)(i) and (e)(2)(ii), except that you must review or record, as applicable:
(I) an identifying number for your customer and, if applicable, the person on whose behalf your customer is conducting the transaction;
(II) the recipient's name; and
(III) the name of the recipient's bank and bank account number if the funds are to be deposited in the recipient's bank account;
(ii) your customer's date of birth;
(iii) your customer's telephone number, or, if your customer has no telephone, a notation in the record of that fact;
(iv) the time of day the transaction is conducted;
(v) the location of the office where the transaction is conducted;
(vi) the method of payment (e.g., cash, check, credit card);
(vii) the amount of any fee charged for the transaction; and
(viii) the unique number of the receipt required under §33.37 of this title (relating to Money Transmission Receipts).
(C) for an in-person transaction in which your customer receives payment of the transmitted funds as the designated recipient or on behalf of the designated recipient:
(i) the customer and transaction information required under 31 CFR §1010.410(e)(1)(iii) and (e)(3)(i), except that you must review or record, as applicable:
(I) an identifying number for your customer and, if applicable, the person on whose behalf your customer is conducting the transaction;
(II) a photograph identification of your customer;
(III) the identity of the issuer of the photograph identification; and
(IV) the sender's name;
(ii) your customer's date of birth;
(iii) your customer's telephone number, or, if your customer has no telephone, a notation in the record of that fact;
(iv) the time of day your customer receives payment of the transmitted funds;
(v) the location of the office where your customer receives payment of the transmitted funds;
(vi) the method of payment (e.g., cash, check); and
(vii) the unique number of the receipt required under §33.37 of this title (relating to Money Transmission Receipts).
(D) for a transaction where the transmission proceeds are delivered to the designated recipient other than in person:
(i) the customer and transaction records required under 31 CFR §1010.410(e)(1)(iii) and (e)(3)(ii);
(ii) the sender's name;
(iii) the location of the office where the transmitted funds are received; and
(iv) the unique number of the receipt required under §33.37 of this title (relating to Money Transmission Receipts).
(6) With respect to a transmission transaction in an amount less than $3,000, whether your customer is the sender or the recipient, you must keep a record for each transaction that contains:
(A) the date of the transaction and time of day your customer orders the transmission or receives payment of the transmitted funds;
(B) the location of the office where the transaction is conducted;
(C) the amount of the transmission;
(D) the amount of any fee charged for the transaction;
(E) the names of the sender and recipient; and
(F) the unique number of the receipt required under §33.37 of this title (relating to Money Transmission Receipts).
(f) What records must I keep related to currency transportation?
(1) This subsection applies to a transaction in which you, as a license holder or the authorized delegate of a license holder, receive currency or an instrument payable in currency to physically transport the currency or its equivalent from one location to another by motor vehicle or other means of transportation or through the use of the mail or a shipping, courier or other delivery services.
(2) With respect to a transaction subject to paragraphs (3) or (4) of this subsection, you must ask your customer whether the customer is conducting the transaction on the customer's own behalf or on behalf of another person (individual or business.) If your customer is conducting the transaction on behalf of another person, you must obtain and record, in addition to the information required under paragraphs (3) or (4) of this subsection, the name and address of the other person together with appropriate identification for the other person, such as taxpayer identification, passport, or alien registration number.
(3) With respect to a transportation transaction in an amount of $3,000 or more in which your customer is the sender and orders the transportation of the currency on the customer's own behalf or on behalf of another person, you must keep a record for each transaction that contains:
(A) your customer's name, address, date of birth and telephone number or, if your customer has no telephone, a notation in the record of that fact;
(B) your customer's taxpayer identification number (e.g., social security number, employee identification number) or passport number or, if your customer does not have such a number and is an alien, then the number of an alien identification card or other official document evidencing your customer's foreign nationality or residence, such as a foreign driver's license or foreign voter registration card;
(C) the specific identifying information (number, type, issuer) of a document that contains the name and a photograph of your customer and that is customarily acceptable within the banking community as a means of identification when cashing checks for nondepositors;
(D) the designated recipient's name;
(E) the designated recipient's address and telephone number to the extent that information is available to you after reasonable inquiry;
(F) the amount of currency or instrument(s) to be transported and, if an instrument, the type of instrument (e.g., money order, check);
(G) the date and time of day you receive from your customer the currency or instrument(s) to be transported;
(H) the location of the office where the transaction is conducted;
(I) the amount of any fee charged for the transaction; and
(J) the unique number of the receipt required under §33.37 of this title (relating to Money Transmission Receipts).
(4) With respect to a transportation transaction in an amount of $3,000 or more in which your customer receives the transported currency as the designated recipient or on behalf of the designated recipient, you must keep a record for each transaction that contains:
(A) your customer's name, address, date of birth and telephone number or, if your customer has no telephone, a notation in the record of that fact;
(B) your customer's taxpayer identification number (e.g., social security number, employee identification number) or passport number or, if your customer does not have such a number and is an alien, then the number of an alien identification card or other official document evidencing your customer's foreign nationality or residence, such as a foreign driver's license or foreign voter registration card;
(C) the specific identifying information (number, type, issuer) of a document that contains the name and a photograph of your customer and that is customarily acceptable within the banking community as a means of identification when cashing checks for nondepositors;
(D) the sender's name;
(E) the sender's address and telephone number to the extent that information is available to you after reasonable inquiry;
(F) the amount of currency or instrument(s) to be delivered to your customer and, if an instrument, the type of instrument (e.g., money order, check);
(G) the date and time of day your customer receives the transported currency or instrument(s);
(H) the location of the office where the transported currency or instrument(s) is delivered to your customer; and
(I) the unique number of the receipt required under §33.37 of this title (relating to Money Transmission Receipts).
(5) With respect to a transportation transaction in an amount less than $3,000, whether your customer is the sender or the recipient, you must keep a record for each transaction that contains:
(A) the date and time of day you receive from your customer the currency or instrument(s) to be transported or your customer receives the transported currency or instrument(s), as applicable;
(B) the location of the office where the transaction is conducted;
(C) the amount of the currency or instrument(s) transported;
(D) the amount of any fee charged for the transaction;
(E) the names of the sender and recipient; and
(F) the unique number of the receipt required under §33.37 of this title (relating to Money Transmission Receipts).
(g) May I obtain a waiver of the recordkeeping requirements? The commissioner may waive any requirement of this section upon a showing of good cause if the commissioner determines that:
(1) you maintain records sufficient for the department to examine your money transmission business; and
(2) the imposition of the requirement would cause an undue burden on you and conformity with the requirement would not significantly advance the state's interest under Finance Code, Chapter 152.
Source: The provisions of this §33.35 adopted to be effective August 31, 2006, 31 TexReg 6643; amended to be effective July 8, 2010, 35 TexReg 5805; amended to be effective May 5, 2011, 36 TexReg 2724; amended to be effective July 5, 2018, 43 TexReg 4452; amended to be effective January 3, 2019, 43 TexReg 8584; amended to be effective November 16, 2023, 48 TexReg 6584.
(a) Does this section apply to me? This section applies if you hold a money transmission or currency exchange license issued by the department under Finance Code, Chapter 152.
(b) Definitions. Words used in this section that are defined in Finance Code, Chapter 152, have the same meaning as defined in the Finance Code. The following words and terms, when used in this section, shall have the following meanings unless, the text clearly indicates otherwise.
(1) "Conspicuously posted" means displayed so that a customer with 20/20 vision can read it from the place where he or she would typically conduct business with you or, alternatively, on a bulletin board, in plain view, on which you post notices to the general public (such as equal housing posters, licenses, Community Reinvestment Act notices, etc.).
(2) "Customer" means, as to money transmission or currency exchange, any Texas resident to whom, either directly or through an authorized delegate, you provide or have provided money transmission or currency exchange products or services or for whom you conduct or have conducted a money transmission or currency exchange transaction.
(3) "Privacy notice" means any notice regarding a person's right to privacy that you are required to give under a specific state or federal law.
(4) "Required notice" means the notice described in subsection (d) of this section.
(c) Must I provide notice to customers about how to file complaints? Yes. You must tell each of your customers how to file a complaint concerning the money transmission or currency exchange business you conduct under Finance Code, Chapter 152, in accordance with this section.
(d) What must the notice say?
(1) You must use:
(A) a notice that conforms to the complaint notice requirements of the Remittance Transfer Rule of Regulation E (12 C.F.R. Part 1005, Subpart B), such as described by 12 C.F.R. §1005.31(b)(2)(vi), if the Remittance Transfer Rule applies to you; or
(B) a notice that substantially conforms to the language and form of the following notice: If you have a complaint, first contact the consumer assistance division of (Name of License Holder) at (License Holder consumer assistance telephone number), if you still have an unresolved complaint regarding the company's (money transmission or currency exchange activity, please direct your complaint to: Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705, 1-877-276-5554 (toll free), www.dob.texas.gov.
(2) You must provide the required notice in the language in which the transaction is conducted.
(e) How and where must I provide the required notice?
(1) If a state or federal law requires you to send a privacy notice to your customers, you must include the required notice with each privacy notice.
(2) If you maintain a website by which a customer may remit money for transmission or obtain information about the customer's transaction or an existing account, you must include the required notice on your website. The notice must be prominently displayed on the initial page the customer uses to initiate the remittance, transaction or access the information, or on a page available no more than one link from the initial page. The link must clearly describe the information available by clicking the link, e.g., "Texas customers click here for information about filing complaints about our money transmission or currency exchange product or service."
(3) In addition to including the required notice in a privacy notice in accordance with paragraph (1) of this subsection and on your website in accordance with paragraph (2) of this subsection, you must tell customers how to file complaints by one or more of the following methods:
(A) You may include the required notice in at least 8 point type, on each payment instrument or other access device or receipt used in connection with your money transmission or currency exchange business, provided that:
(i) the payment instrument or other access device constitutes the only means of accessing the money received for transmission; or
(ii) you issue a receipt for every money transmission or currency exchange transaction you conduct.
(B) If you personally receive all the funds paid by your customers, you may conspicuously post the required notice where you conduct money transmission or currency exchange activities with customers on a face to face basis.
(C) You may provide each customer with the required notice separately, provided that:
(i) not later than the time the transaction is conducted, you deliver the required notice in a form that your customer can retain; or
(ii) if you use an access device, such as a stored value card, in your money services business and mail the device to your customer, you include the required notice in the mailing; and
(iii) if the same access device may be used continuously, such as a reloadable stored value card, you also deliver the required notice to your customer at least once every twelve months. You may include the required notice with a privacy statement, with or on another statement, or by another means so long as the customer actually receives the notice within each twelve-month period.
(4) If your business is entirely internet based, so that account relationships and transactions are initiated solely by means of the internet, the additional disclosures described in paragraph (3) of this subsection are not required.
(f) How do I provide the required notice if I conduct business through authorized delegates?
(1) If you conduct business through one or more authorized delegates, each authorized delegate must provide the required notice by one or more of the methods described in subsection (e)(3) of this section. You must specify the method or methods to be used by your authorized delegate and provide your authorized delegate with the means by which to give the notice you select.
(2) If your authorized delegate personally receives all funds paid by your customers and you require your authorized delegate to post the required notice described in subsection (e)(3)(B) of this section, you may use one posted notice to provide the required notice and the authorized delegate designation required under §33.52 of this title.
(g) Am I subject to an enforcement action if I do not provide the required notice? Yes. You are subject to enforcement sanctions under Finance Code, Chapter 152, Subchapter I, if you:
(1) fail to provide the required notice in accordance with this section; or
(2) fail to specify the method and provide the means by which your authorized delegate must give the required notice in accordance with subsection (f)(1) of this section.
(h) Is my authorized delegate subject to an enforcement action if the delegate does not provide the required notice? Yes, if you have complied with subsection (f)(1) of this section. If you have specified the method and provided the means by which your authorized delegate must give the required notice, your authorized delegate is subject to enforcement sanctions if the delegate fails to provide the required notice as directed.
Source: The provisions of this §33.51 adopted to be effective May 18, 2006, 31 TexReg 3869; amended to be effective July 8, 2010, 35 TexReg 5805; amended to be effective November 4, 2010, 35 TexReg 9698; amended to be effective March 7, 2013, 38 TexReg 1357; amended to be effective January 4, 2018, 42 TexReg 7581; amended to be effective July 5, 2018, 43 TexReg 4452; amended to be effective November 7, 2019, 44 TexReg 6522; amended to be effective May 12, 2022, 47 TexReg 2735; amended to be effective November 16, 2023, 48 TexReg 6584.
(a) In addition to the complaint notice required by §33.51(f) of this title, an authorized delegate of a money transmission license holder appointed in accordance with Texas Finance Code, Chapter 152, Subchapter F must provide each of its Texas customers with notice that:
(1) is written in the language in which the transaction is conducted;
(2) states the name of the license holder; and
(3) indicates that the person is an authorized delegate conducting money transmission on behalf of the license holder.
(b) The notice must be provided by one or more of the methods described in §33.51(e)(3) of this title. If the authorized delegate maintains a website that advertises the money transmission services it provides on behalf of the license holder, the notice must also be prominently displayed on this website.
(c) The authorized delegate notice may be provided on a single form with the complaint notice required under §33.51 of this title.
Source: The provisions of this §33.52 adopted to be effective May 7, 2015, 40 TexReg 2410; amended to be effective November 16, 2023, 48 TexReg 6584.
(a) For purposes of this section, the terms "debt management service" and "provider" have the meanings assigned by Texas Finance Code §394.202.
(b) A debt management service provider who, in the course of conducting its debt management services, receives money from consumers for distribution to the consumer's creditors need not obtain a money transmission license if that provider:
(1) is registered and in good standing with the Office of Consumer Credit Commissioner as a debt management service provider under Finance Code Chapter 394;
(2) is in compliance with all requirements of Finance Code Chapter 394 and 7 TAC Chapter 88 (relating to Consumer Debt Management Services); and
(3) conducts no money transmission as defined by Finance Code §152.003, except as necessary to provide debt management services to contractual customers.
(c) Any debt management service provider who receives money from consumers and who is exempted from registration by the Office of Consumer Credit Commissioner for any reason, including under Finance Code §394.203(c)(5), must contact the Department of Banking to seek a determination as to whether a money transmission license is required.
(d) Any debt management service provider exempted from money transmission licensing under subsection (b) of this section must immediately contact the Department of Banking in the event that any of the conditions listed in subsection (b) of this section change.
Source: The provisions of this §33.53 adopted to be effective January 5, 2012, 36 TexReg 9285; amended to be effective November 16, 2023, 48 TexReg 6584.