2023 CODE OF GEORGIA › Title 7 - BANKING AND FINANCE (§§ 7-1-1 — 7-9-13) › Chapter 1 - FINANCIAL INSTITUTIONS (§§ 7-1-1 — 7-1-1138) › Article 4 - SALE OF PAYMENT INSTRUMENTS OR THE TRANSMISSION OF MONEY (§§ 7-1-680 — 7-1-698) › Section 7-1-691 - Prohibited activities while engaged in money transmission

It shall be prohibited for any person engaged in money transmission in this state, including any person required to be licensed under this article, to:
(1)
Engage in money transmission as an agent of a principal who is not exempt from the licensure requirements under Code Section
7-1-682
and has not obtained a license hereunder, and any person who does so shall be deemed to be the principal seller or issuer of the payment instrument and not merely an agent and shall be liable to the payment instrument holder or remitter as the principal seller;
(2)
Receive, transmit, or handle monetary value on behalf of another or issue a payment instrument and not be exempt from licensure under Code Section
7-1-682
, and any person who does so shall be liable to the payment instrument holder for the payment thereof to the same extent as a drawer of a negotiable instrument, whether or not the payment instrument is a negotiable instrument under Article 3 of Title 11;
(3)
Fail to transmit money received within ten days of receiving such money, unless the agreement between the licensee and the customer instructs the licensee to forward the money at a time that is beyond ten days of the date on which the money was received for transmission;
(4)
Engage in any activity that would subject a licensee to suspension or revocation of its license under this article or any activity that the department may prohibit pursuant to rule or regulation, whether or not the person has a license;
(5)
Fail to honor a valid payment instrument issued by a money transmitter that has been properly presented by the payee to a third party; or
(6)
Fail to issue a refund to the customer within ten days of receipt of the customer's written request for a refund of money received for transmission, unless any of the following occurs:
(A)
The money has already been transmitted;
(B)
Instructions have already been given committing an equivalent amount of money to the person designated by the customer within ten days of the date on which the money was received for transmission;
(C)
The agreement between the licensee and the customer instructs the licensee to forward the money at a time that is beyond ten days of the date on which the money was received for transmission. If funds have not yet been forwarded in accordance with the terms of the agreement between the licensee and the customer, the licensee shall issue a refund;
(D)
The refund is requested for a transaction that the licensee has not completed based on a reasonable belief that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur;
(E)
The refund request does not enable the licensee to identify the customer, the customer's contact information, and the particular transaction to be refunded if the customer has multiple transactions pending;
(F)
The money was received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee; or
(G)
The money was received for transmission subject to the Federal Remittance Rule, 12 C.F.R. Part 1005 , Subpart B.
Amended by 2023 Ga. Laws 348,§ 30, eff. 7/1/2023.
Added by 2014 Ga. Laws 532,§ 1, eff. 7/1/2014.