2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 3 - Licenses › Section 2039.

2039. (a) The commissioner may, by order or regulation, grant exemptions from this section in cases in which the commissioner finds that the requirements of this section are not necessary or may be duplicative.
(b) In addition to any other reports as may be required pursuant to Sections 453, 454, and 455, each licensee shall, within 90 days after the end of each fiscal year, or within any extended time as the commissioner may prescribe, file with the commissioner an audit report for the fiscal year that shall comply with all of the following provisions:
(1) The audit report shall contain audited financial statements of the licensee for or as of the end of the fiscal year prepared in accordance with United States generally accepted accounting principles and any other information as the commissioner may require.
(2) The audit report shall be based upon an audit of the licensee conducted in accordance with United States generally accepted auditing standards and any other requirements as the commissioner prescribes.
(3) The audit report shall be prepared by an independent certified public accountant or independent public accountant who is not unsatisfactory to the commissioner.
(4) The audit report shall include or be accompanied by a certificate of opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the commissioner. If the certificate or opinion is qualified, the commissioner may order the licensee to take any action as the commissioner finds necessary to enable the independent or certified public accountant or independent public accountant to remove the qualification.
(c) Each licensee shall, not more than 45 days after the end of each calendar year quarter, or within a longer period as the commissioner, by regulation or order, specifies, file with the commissioner a report containing all of the following:
(1) Financial statements, including balance sheet, income statement, statement of changes in shareholders’ equity, and statement of cashflows, for, or as of the end of, that calendar year quarter, verified by two of the licensee’s principal officers. The verification shall state that each of the officers making the verification has a personal knowledge of the matters in the report and that each of them believes that each statement on the report is true.
(2) For issuers and sellers of payment instruments and stored value, a schedule of eligible securities owned by the licensee pursuant to Section 2081.
(3) Other information as the commissioner, by regulation or order, requires.
(d) Each licensee, not more than 45 days after the end of each calendar year quarter, shall file through the NMLS a report containing all of the following:
(1) The current address of each branch office of the licensee in this state. If a branch office was opened or closed during the calendar year quarter, the date it was opened or closed. If a branch office was relocated during the calendar year quarter, the addresses of the old and new locations and the date of relocation.
(2) All of the following information related to each agent who acted, in this state, as an agent of the licensee during the calendar year quarter:
(A) The agent’s name, telephone number, and email address.
(B) The agent’s taxpayer employer identification number.
(C) The agent’s principal provider identifier.
(D) The agent’s physical address.
(E) The agent’s mailing address.
(F) Any business conducted in other states by the agent on behalf of the licensee.
(G) Any fictitious or trade name used by the agent.
(H) The date of appointment or termination of the agent in the calendar year, if applicable.
(I) The addresses for the old and new locations and the date of relocation of any agent that relocated during the calendar year quarter, if applicable.
(3) The total volume of activities, number of transactions conducted, and outstanding money transmission obligations in California under this division and in the United States in the calendar year quarter categorized by type of money transmission, and, if feasible whether the transmission was conducted via a mobile application or an internet website. For money received for transmission, a report of the average daily outstanding transmission liabilities in California, and, if applicable, a schedule of each foreign country to which money was sent, along with the total amount of money sent to that foreign country in that calendar year quarter. For payment instruments and stored value, a report of the average daily outstanding payment instruments and stored value liabilities in California in that calendar year quarter.
(4) Other information as the commissioner, by regulation or order, requires.
(e) Each licensee shall file with the commissioner other reports as and when the commissioner, by regulation or order, requires.
(Amended by Stats. 2023, Ch. 463, Sec. 4. (AB 1116) Effective January 1, 2024.)