03/15/2010
Restructuring of examination fees levels program cost for small and large companies, clarification of regulation of non FDIC-insured stored value cards protects consumers
OLYMPIA – The Washington State Department of Financial Institutions is pleased to announce the passage of SSB 6371 regarding Money Transmitters with Governor Gregoire’s signing of the bill into law this afternoon.
“We requested this bill in part to ensure program costs were more fairly distributed between small and large businesses,” Deborah Bortner, DFI’s Director of Consumer Services said. “Additionally, we wanted to make sure consumers were protected with the clarification regarding regulation of certain stored value devices not insured by the FDIC. This bill helps DFI meet all of those goals.”
Money Transmitters (SSB 6371)
- Eliminates examination fees. Each money transmitter will pay a single fee each year. This evens out the fee structure between large and small money transmitters (and makes it more fair for small businesses).
- Assessments are based on volume of transactions, instead of number of locations.
- Bases bond requirements on transaction volume.
- Simplifies reporting requirements to allow a single report to an appropriate federal agency instead of requiring reports to both the federal agency and DFI.
- The bill clarifies that open-loop stored value devices (non-store pre-loaded cards) not insured by the FDIC are included in the definition of money transmitters. However, money transmission does not include closed-loop stored value devices that may be used for a limited universe of goods (such as a department store gift card with a pre-set value).
This law goes into effect June 10, 2010.