The Florida Senate

560.114  Disciplinary actions.--

(1)  The following actions by a money transmitter or money transmitter-affiliated party are violations of the code and constitute grounds for the issuance of a cease and desist order, the issuance of a removal order, the denial of a registration application or the suspension or revocation of any registration previously issued pursuant to the code, or the taking of any other action within the authority of the office pursuant to the code:

(a)  Failure to comply with any provision of the code, any rule or order adopted pursuant thereto, or any written agreement entered into with the office.

(b)  Fraud, misrepresentation, deceit, or gross negligence in any transaction involving money transmission, regardless of reliance thereon by, or damage to, a money transmitter customer.

(c)  Fraudulent misrepresentation, circumvention, or concealment of any matter required to be stated or furnished to a money transmitter customer pursuant to the code, regardless of reliance thereon by, or damage to, such customer.

(d)  False, deceptive, or misleading advertising.

(e)  Failure to maintain, preserve, and keep available for examination all books, accounts, or other documents required by the code, by any rule or order adopted pursuant to the code, by 31 C.F.R. ss. 103.20, 103.22, 103.27, 103.28, 103.29, 103.33, 103.37, 103.41, and 103.125 as they existed on March 31, 2004, or by any agreement entered into with the office.

(f)  Refusal to permit the examination or inspection of books and records in an investigation or examination by the office, pursuant to the provisions of the code, or to comply with a subpoena issued by the office.

(g)  Failure to pay a judgment recovered in any court in this state by a claimant in an action arising out of a money transmission transaction within 30 days after the judgment becomes final.

(h)  Engaging in an act or practice proscribed by s. 560.111

(i)  Insolvency or operating in an unsafe and unsound manner.

(j)  Failure by a money transmitter to remove a money transmitter-affiliated party after the office has issued and served upon the money transmitter a final order setting forth a finding that the money transmitter-affiliated party has violated any provision of the code.

(k)  Making any material misstatement or misrepresentation or committing any fraud in an initial or renewal application for registration.

(l)  Committing any act resulting in an application for registration, or a registration or its equivalent, to practice any profession or occupation being denied, suspended, revoked, or otherwise acted against by a registering authority in any jurisdiction or a finding by an appropriate regulatory body of engaging in unlicensed activity as a money transmitter within any jurisdiction.

(m)  Committing any act resulting in a registration or its equivalent, or an application for registration, to practice any profession or occupation being denied, suspended, or otherwise acted against by a registering authority in any jurisdiction for a violation of 18 U.S.C. s. 1956, 31 U.S.C. s. 5324, or any other law, rule, or regulation of another state or of the United States relating to the business of money transmission or usury which may cause the denial or revocation of a money transmitter license or registration in such jurisdiction.

(n)  Having been convicted of or found guilty of, or having pleaded guilty or nolo contendere to, any felony or crime punishable by imprisonment of 1 year or more under the law of any state or of the United States which involves fraud, moral turpitude, or dishonest dealing, without regard to whether a judgment of conviction has been entered by the court.

(o)  Having been convicted of or found guilty of, or having pleaded guilty or nolo contendere to, a crime under 18 U.S.C. s. 1956 or 31 U.S.C. s. 5324, without regard to whether a judgment of conviction has been entered by the court.

(p)  Having been convicted of or found guilty of, or having pleaded guilty or nolo contendere to, misappropriation, conversion, or unlawful withholding of moneys that belong to others and were received in the conduct of the business of the money transmitter.

(q)  Failure to inform the office in writing within 15 days after pleading guilty or nolo contendere to, or being convicted or found guilty of, any felony or crime punishable by imprisonment of 1 year or more under the law of any state or of the United States, or of any crime involving fraud, moral turpitude, or dishonest dealing, without regard to whether a judgment of conviction has been entered by the court.

(r)  Aiding, assisting, procuring, advising, or abetting any person in violating a provision of this code or any order or rule of the office or commission.

(s)  Failure to timely pay any fee, charge, or fine under the code.

(t)  Failure to pay any judgment entered by any court within 30 days after the judgment becomes final.

(u)  Engaging or holding oneself out to be engaged in the business of a money transmitter without the proper registration.

(v)  Any action that would be grounds for denial of a registration or for revocation, suspension, or restriction of a registration previously granted under part III of this chapter.

(w)  Failure to pay any fee, charge, or fine under the code.

(x)  Engaging or advertising engagement in the business of a money transmitter without a registration, unless the person is exempted from the registration requirements of the code.

(y)  Payment to the office for a license or permit with a check or electronic transmission of funds that is dishonored by the applicant's or licensee's financial institution.

(2)  The office may issue a cease and desist order or removal order, suspend or revoke any previously issued registration, or take any other action within the authority of the office against a money transmitter based on any fact or condition that exists and that, if it had existed or been known to exist at the time the money transmitter applied for registration, would have been grounds for denial of registration.

(3)  Each money transmitter is responsible for any act of its authorized vendors if the money transmitter should have known of the act or if the money transmitter has actual knowledge that such act is a violation of the code and the money transmitter willfully allowed such act to continue. Such responsibility is limited to conduct engaged in by the authorized vendor pursuant to the authority granted to it by the money transmitter.

(4)  If a registration granted under this code expires or is surrendered by the registrant during the pendency of an administrative action under this code, the proceeding may continue as if the registration were still in effect.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 3, ch. 97-59; s. 5, ch. 2000-360; s. 3, ch. 2001-119; s. 697, ch. 2003-261; s. 3, ch. 2004-85; s. 54, ch. 2006-213.