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 department pursuant to the code:

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

(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 by a money transmitter or authorized vendor.

(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, or by any agreement entered into with the department.

(f)  Any fact or condition that exists that, if it had existed or had been known to exist at the time the money transmitter applied for registration, would have been grounds for denial of registration.

(g)  A willful refusal to permit the examination or inspection of books and records in an investigation or examination by the department, pursuant to the provisions of the code, or to comply with a subpoena issued by the department.

(h)  Failure of the money transmitter or authorized vendor 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.

(i)  Engaging in a prohibited act or practice.

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

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

(2)  In addition to the acts specified in subsection (1), the following acts are grounds for denial of registration or for revocation, suspension, or restriction of registration previously granted:

(a)  A material misstatement of fact in an initial or renewal application for registration.

(b)  Having an application for registration, or a registration or its equivalent, to practice any profession or occupation denied, suspended, revoked, or otherwise acted against by a registering authority in any jurisdiction for fraud or dishonest dealing.

(c)  Having a registration or its equivalent, or an application for registration, to practice any profession or occupation 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 of another state or of the United States relating to the business of money transmission which may cause the denial or revocation of a money transmitter license or registration in such jurisdiction.

(d)  Having been convicted of or found guilty of, or having pleaded guilty or nolo contendere to, a crime involving fraud or dishonest dealing.

(e)  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.

(f)  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.

(3)  Each money transmitter is responsible for any act of its authorized vendors, 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.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 3, ch. 97-59.