2023 Indiana Code › Title 28. Financial Institutions › Article 8. Financial Services › Chapter 4.1. Money Transmission Modernization Act › 28-8-4.1-1101. Revocation or Suspension of License; Order to Show Cause; Findings by the Department; Entry of Order; Relinquishment of License; Existing Contractual Obligations; Emergency or Temporary Order

Effective 1-1-2024.
Sec. 1101. (a) The director may issue to a licensee an order to show cause why the licensee's license should not be revoked or suspended for a period determined by the department.
(b) An order issued under subsection (a) must:
(1) include:
(A) a statement of the place, date, and time for a meeting with the department, which date may not be less than ten (10) days from the date of the order;
(B) a description of the action contemplated by the department; and
(C) a statement of the facts or conduct supporting the issuance of the order; and
(2) be accompanied by a notice stating that the licensee is entitled to:
(A) a reasonable opportunity to be heard; and
(B) show the licensee's compliance with all lawful requirements for retention of the license;
at the meeting described in subdivision (1)(A).
(c) After the meeting described in subsection (b)(1)(A), the department may revoke or suspend the license if the department finds that:
(1) the licensee has repeatedly and willfully violated:
(A) this chapter or any applicable rule, order, or guidance document adopted or issued by the department; or
(B) any other state or federal law, regulation, or rule applicable to the business of money transmission;
(2) the licensee does not meet the licensing qualifications set forth in this chapter;
(3) the licensee obtained the license for the benefit of, or on behalf of, a person who does not qualify for the license;
(4) the licensee knowingly or intentionally made material misrepresentations to, or concealed material information from, the department;
(5) the licensee did not cooperate with an examination or investigation by the director;
(6) the licensee engaged in fraud, intentional misrepresentation, or gross negligence;
(7) an authorized delegate has been convicted of a violation of a state or federal money laundering statute, or has violated a rule adopted or an order issued under this chapter, as a result of the licensee's willful misconduct or willful ignorance of the situation;
(8) the competence, experience, character, or general fitness of the licensee, an authorized delegate of the licensee, a person in control of the licensee, a key individual with respect to the licensee, or a responsible person of an authorized delegate of the licensee indicates that it is not in the public interest to permit the person to provide money transmission;
(9) the licensee has engaged in an unsafe or unsound practice;
(10) the licensee is insolvent, has suspended payment of its obligations, or has made a general assignment for the benefit of its creditors;
(11) the licensee has not removed an authorized delegate after the department has issued and served upon the licensee a final order that included a finding that the authorized delegate has violated this chapter; or
(12) facts or conditions exist that, had they existed at the time the licensee applied for the license, would have been grounds for the department to deny the issuance of the license.
(d) In determining whether a licensee is engaging in an unsafe or unsound practice, the director may consider the size and condition of the licensee's money transmission, the magnitude of the loss, the gravity of the violation of this chapter, and the previous conduct of the person involved.
(e) Whenever the department revokes or suspends a license, the department shall enter an order to that effect and notify the licensee of:
(1) the revocation or suspension;
(2) if a suspension has been ordered, the duration of the suspension;
(3) the procedure for appealing the revocation or suspension under IC 4-21.5-3-6; and
(4) any other terms and conditions that apply to the revocation or suspension.
Not later than five (5) days after the entry of the order, the department shall deliver to the licensee a copy of the order and the findings supporting the order.
(f) Any person holding a license to engage in the business of money transmission may relinquish the license by notifying the department in writing of the relinquishment. However, a relinquishment under this subsection does not affect the person's liability for acts previously committed and coming within the scope of this chapter.
(g) If the director determines it to be in the public interest, the director may pursue the revocation of a license of a licensee that has relinquished the license under subsection (f).
(h) If a person's license is revoked, suspended, or relinquished, the revocation, suspension, or relinquishment does not impair or affect any obligation owed by any person under any existing lawful contract.
(i) If the director has just cause to believe an emergency exists from which it is necessary to protect the interests of the public, the director may proceed with the revocation of a license through an emergency or another temporary order.
As added by P.L.198-2023, SEC.4.