AN ACT TO AMEND SECTION 75-16-11, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT ALL FUNDS COMING INTO THE POSSESSION OF THE COMMISSIONER OF THE DEPARTMENT OF BANKING AND CONSUMER FINANCE AS A RESULT OF THE MONEY TRANSMISSION MODERNIZATION ACT SHALL BE DEPOSITED INTO THE SPECIAL FUND IN THE STATE TREASURY KNOWN AS THE "CONSUMER FINANCE FUND," AND SHALL BE EXPENDED BY THE COMMISSIONER SOLELY AND EXCLUSIVELY FOR THE ADMINISTRATION AND ENFORCEMENT OF THE ACT; TO AMEND SECTION 75-16-25, MISSISSIPPI CODE OF 1972, TO REQUIRE APPLICATIONS FOR A LICENSE TO CONTAIN A LIST OF THE APPLICANT'S VIRTUAL CURRENCY KIOSKS IN THIS STATE AT WHICH IT PROPOSES TO PROVIDE VIRTUAL CURRENCY KIOSK TRANSACTIONS; TO AMEND SECTION 75-16-31, MISSISSIPPI CODE OF 1972, TO REQUIRE RENEWAL REPORTS TO CONTAIN A LIST OF THE LOCATIONS IN THIS STATE WHERE THE LICENSEE OR AN AUTHORIZED DELEGATE OF THE LICENSEE ENGAGES IN VIRTUAL CURRENCY KIOSK TRANSACTIONS; TO AMEND SECTION 75-16-43, MISSISSIPPI CODE OF 1972, TO REQUIRE LICENSEES TO SUBMIT QUARTERLY REPORTS CONTAINING CERTAIN INFORMATION ABOUT LOCATIONS AT WHICH MONEY SERVICES ARE PROVIDED AND OF VIRTUAL CURRENCY KIOSKS; TO AMEND SECTION 75-16-51, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A LICENSEE'S WRITTEN CONTRACT SEEKING TO CONDUCT BUSINESS THROUGH AN AUTHORIZED DELEGATE MUST BE MADE AVAILABLE TO THE COMMISSIONER UPON REQUEST BEFORE THE LICENSEE IS AUTHORIZED TO CONDUCT SUCH BUSINESS; TO AMEND SECTION 75-16-65, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A LICENSEE SHALL ANNUALLY PROVIDE TRAINING MATERIALS TO EACH AUTHORIZED DELEGATE THROUGH WHICH IT ENGAGES IN THE BUSINESS OF MONEY TRANSMISSION ON RECOGNIZING FINANCIAL ABUSE AND EXPLOITATION OF AN ELDER ADULT; TO CREATE NEW SECTION 75-16-89, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT A LICENSEE PROVIDE ITS NAME AND MAILING ADDRESS OR TELEPHONE NUMBER TO THE PURCHASER IN CONNECTION WITH EACH MONEY TRANSMISSION OR KIOSK TRANSACTION CONDUCTED BY THE LICENSEE DIRECTLY OR THROUGH AN AUTHORIZED DELEGATE; TO CREATE NEW SECTIONS TO BE CODIFIED AS A NEW CHAPTER WITHIN TITLE 75, MISSISSIPPI CODE OF 1972, THAT MAY BE CITED AS THE "DATA SECURITY FOR MONEY TRANSMITTERS ACT"; TO DEFINE TERMS; TO CREATE STANDARDS FOR SAFEGUARDING CUSTOMER INFORMATION; TO SET FORTH REQUIRED ELEMENTS FOR INFORMATION SECURITY PROGRAMS; TO REQUIRE THAT A LICENSEE PROVIDE NOTIFICATION OF CERTAIN EVENTS TO THE COMMISSIONER; TO PROVIDE CERTAIN EXCEPTIONS; TO SET FORTH THE COMMISSIONER'S AUTHORITY RELATED TO THE ACT; AND FOR RELATED PURPOSES.
Summary
Senate Bill 2715 aims to amend several provisions of the Money Transmission Modernization Act, primarily focusing on enhancing consumer protection, increasing regulatory oversight, and addressing issues related to virtual currency transactions. The bill stipulates that all funds received under this legislation will be deposited into a special fund known as the Consumer Finance Fund, which exclusively supports the administration and enforcement of the act. Moreover, it introduces comprehensive reporting and compliance requirements for licensees engaged in money transmission operations, particularly those utilizing virtual currency kiosks.
The proposed amendments include stringent provisions for licensees related to their engagement with authorized delegates, ensuring that they maintain appropriate training and reporting structures. Licensees will be required to submit quarterly reports that detail their operational activities, specifically around virtual currency kiosks. These provisions aim to create a fluid regulatory environment that balances innovation in financial technology with the essential need for consumer safety and transparency in financial transactions.
Furthermore, the bill emphasizes the importance of training regarding financial abuse and exploitation of elder adults, which reflects a broader commitment to protecting vulnerable populations during financial transactions. Licensees are mandated to provide relevant training materials to their authorized delegates, thereby promoting heightened awareness and preventive measures against potential fraud and exploitation.
Points of contention surrounding SB2715 may arise from stakeholders concerned about the increased regulatory burden placed on businesses operating in the financial sector, particularly small operators who may struggle with compliance costs. However, proponents argue that such measures are necessary to safeguard consumer interests and ensure integrity within the money transmission landscape. The bill is set to take effect on July 1, 2026, allowing stakeholders to prepare for these significant changes.