2023 Louisiana Laws › Revised Statutes › Title 6 - Banks and Banking › §6:1385. Requirements

RS 6:1385 - Requirements
A. An applicant for a license pursuant to the provisions of this Chapter shall submit the application through the Nationwide Multi-State Licensing System (NMLS) and satisfy all of the following:
(1) Provide all of the following information relevant to the applicant's proposed virtual currency business activity:
(a) The legal name of the applicant, each current or proposed business United States Postal Service address of the applicant, and any fictitious or trade name the applicant uses or plans to use in conducting its virtual currency business activity with or on behalf of a resident.
(b) The legal name, any former or fictitious name, and the residential and business United States Postal Service address of each responsible individual of the applicant and each person that has control of the applicant.
(c) A description of the current and former business of the applicant for the five years before the application is submitted or, if the business has operated for less than five years, for the time the business has operated, including its products and services, associated internet website addresses and social media pages, principal place of business, projected user base, and specific marketing targets.
(d) The name, United States Postal Service address, and telephone number of a person that manages each server the applicant expects to use in conducting its virtual currency business activity with, or on behalf of, a resident and a copy of any agreement with that person. A copy of the applicant's business plan, which shall include a three-year financial pro forma, the anticipated volume of virtual currency business activities in this state for the same period, the anticipated number of virtual currency locations in this state, including kiosk machines, and evidence of the surety bond as well as the current and continued maintenance of the tangible net worth required by R.S. 6:1386.
(e) The name, United States Postal Service address, and telephone number of each affiliate of the applicant and a description of the control relationship.
(f) A list of both of the following:
(i) Each money service or money transmitter license the applicant holds in another state and the date the license expires.
(ii) Any license revocation, license suspension, or other disciplinary action taken against the licensee in another state and any license applications rejected by another state.
(g) A list of any criminal conviction, deferred prosecution agreement, or pending criminal proceeding in any jurisdiction against all of the following:
(i) The applicant.
(ii) Each responsible individual of the applicant.
(iii) Each person that has control over the applicant.
(iv) Each person over which the applicant has control.
(h) A list of any litigation, arbitration, or administrative proceeding in any jurisdiction in which the applicant or a responsible individual of the applicant has been a party for the five years before the application is submitted, determined to be material in accordance with generally accepted accounting principles and to the extent the applicant would be required to disclose the litigation, arbitration, or administrative proceeding in the applicant's audited financial statements, reports to equity owners, and similar statements or reports.
(i) A list of any bankruptcy or receivership proceeding in any jurisdiction for the ten years before the application is submitted in which any of the following was a debtor:
(i) The applicant.
(ii) Each responsible individual of the applicant.
(iii) Each person who has control over the applicant.
(iv) Each person over which the applicant has control.
(j) The name and United States Postal Service address of each bank in which the applicant plans to deposit funds obtained by its virtual currency business activity.
(k) The source of funds and credit to be used by the applicant to conduct virtual currency business activity with, or on behalf of, a resident and documentation demonstrating that the applicant has the tangible net worth required pursuant to R.S. 6:1386.
(l) The United States Postal Service address and electronic mail address to which communications from the office may be sent.
(m) The name, United States Postal Service address, and electronic mail address of the registered agent of the applicant in this state.
(n) A copy of the certificate of coverage for each liability, casualty, business interruption, and cybersecurity insurance policy maintained by the applicant for itself or as to any responsible individual, affiliate, agent, or control person of the applicant, with respect to the virtual currency business activities of the applicant.
(o) If applicable, the date on which and the state where the applicant is formed and a copy of a current certificate of good standing issued by that state.
(p) A copy of the applicant's audited financial statement for the prior year.
(q) If a person has control of the applicant and the person's equity interests are publicly traded in the United States, a copy of the audited financial statement of the person for the most recent fiscal year or most recent report of the person filed pursuant to 15 U.S.C. 78.
(r) If a person has control of the applicant and the person's equity interests are publicly traded outside of the United States, a copy of the audited financial statement of the person for the most recent fiscal year of the person or a copy of the most recent documentation similar to that required in Subparagraph (q) of this Paragraph filed with the foreign regulator in the domicile of the person.
(s) If the applicant is a partnership or a member-managed limited liability company, the names and United States Postal Service addresses of all general partners or members.
(t) If the applicant is required to register with the Financial Crimes Enforcement Network of the United States Department of the Treasury as a money service business, evidence of the registration.
(u) A set of fingerprints for each responsible individual and person who has control of the applicant. If the person resided outside of the United States anytime within the past ten years, the person shall also provide an investigative background report prepared by an independent search firm that meets the following requirements:
(i) At a minimum, the search firm shall satisfy both of the following:
(aa) Demonstrate that it has sufficient knowledge and resources and employs accepted and reasonable methodologies to conduct the research of the background report.
(bb) Demonstrate that it does not have an interest in, nor affiliation with, the person who is the subject of the background report.
(ii) At a minimum, the investigative background report shall be written in the English language and shall contain all of the following:
(aa) If available in the person's current jurisdiction of residency, a comprehensive credit report or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked.
(bb) Criminal records information for the past ten years, including but not limited to felonies, misdemeanors, or similar convictions.
(cc) Employment history.
(dd) Media history, including an electronic search of national and local publications, wire services, and business applications.
(ee) Financial services-related regulatory history, including but not limited to money transmission, securities, banking, insurance, and mortgage-related industries.
(v) For each responsible individual and person who has control of the applicant, for the five years before the application is submitted, employment history and history of any investigation of the person who has control or the responsible individual or legal proceeding to which the person who has control or responsible individual was a party.
(w) Other information the office reasonably requires by rule.
(2) Provide through and in the manner prescribed by NMLS a nonrefundable fee in an amount provided for by rule for the reasonable regulatory cost of the application and investigation process. Pursuant to this Section, the applicant shall pay the reasonable costs of the investigation incurred by the office that are in excess of the amount of the nonrefundable fee amount in the manner prescribed by the commissioner.
B. An application for a license pursuant to this Section shall not be complete until the office receives all information required by the provisions of this Chapter and completes its investigation pursuant to Subsection C of this Section.
C.(1) On receipt of a completed application, the office shall investigate all of the following:
(a) The financial condition and responsibility of the applicant.
(b) The relevant financial and business experience, character, and general fitness of the applicant.
(c) The competence, experience, character, and general fitness of each responsible individual and any person who has control of the applicant, in order for the commissioner to reasonably determine that the applicant will conduct its virtual currency business activity honestly, carefully, and efficiently and in accordance with the requirements of this Chapter and any other applicable state or federal laws or regulations.
(2) At the option of the office, it may investigate the business premises of an applicant.
D.(1) Not later than sixty days after an application is complete, the office shall send the applicant notice of its decision to approve, conditionally approve, or deny the application.
(2) If the office does not receive notice from the applicant that the applicant accepts conditions specified by the office within thirty-one days after the date of the notice of the conditional approval, the application shall be deemed denied.
E. No license shall be issued pursuant to this Chapter unless all of the following occur:
(1) The applicant provides a surety bond and the commissioner accepts the surety bond required pursuant to R.S. 6:1386.
(2) The applicant provides evidence acceptable to the commissioner of the tangible net worth required pursuant to R.S. 6:1386.
(3) The applicant has paid all costs and fees required pursuant to this Chapter in connection with a license application.
(4) The commissioner has issued notice of the decision to approve or conditionally approve the application in accordance with Subsection D of this Section.
Acts 2020, No. 341, §1; Acts 2023, No. 331, §1, eff. June 13, 2023.
NOTE: The provisions of Acts 2023, No. 331, will terminate on July 1, 2025.