2023 Indiana Code › Title 28. Financial Institutions › Article 8. Financial Services › Chapter 4.1. Money Transmission Modernization Act › 28-8-4.1-1102. Prohibition Against Designating Current Authorized Delegate; Order to Show Cause; Findings by the Department; Entry of Order; Relinquishment of Designation as Authorized Agent; Existing Contractual Obligations; Emergency or Temporary Order

Effective 1-1-2024.
Sec. 1102. (a) The director may issue to a licensee an order to show cause why the licensee should not be prohibited from designating a current authorized delegate of the licensee as an authorized delegate, or from having the licensee's ability to designate a current authorized delegate as an authorized delegate 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 concerning the designation of an authorized delegate;
at the meeting described in subdivision (1)(A).
(c) After the meeting described in subsection (b)(1)(A), the department may prohibit the licensee from designating, or suspend the licensee's ability to designate, a current authorized delegate as an authorized delegate if the department finds that:
(1) the authorized delegate 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 authorized delegate does not meet the authorized delegate qualifications set forth in this chapter;
(3) the authorized delegate obtained the designation for the benefit of, or on behalf of, a person who does not qualify for the authorized delegate designation;
(4) the authorized delegate knowingly or intentionally made material misrepresentations to, or concealed material information from, the department;
(5) the authorized delegate did not cooperate with an examination or investigation by the director;
(6) the authorized delegate engaged in fraud, intentional misrepresentation, or gross negligence;
(7) the authorized delegate has been convicted of a violation of a state or federal money laundering statute;
(8) the competence, experience, character, or general fitness of the licensee, the authorized delegate, a person in control of the licensee, a key individual, or a responsible person of the authorized delegate indicates that it is not in the public interest to permit the person to provide money transmission; or
(9) the authorized delegate has engaged in an unsafe or unsound practice.
(d) Whenever the department prohibits a licensee from designating, or suspends a licensee's ability to designate, an authorized delegate, the department shall enter an order to that effect and notify the licensee of:
(1) the prohibition or suspension;
(2) if a suspension has been ordered, the duration of the suspension;
(3) the procedure for appealing the prohibition or suspension under IC 4-21.5-3-6; and
(4) any other terms and conditions that apply to the prohibition 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.
(e) Any authorized delegate may relinquish its designation as an authorized delegate by notifying the department in writing of the relinquishment. However, a relinquishment under this subsection does not affect the authorized delegate's liability for acts previously committed and coming within the scope of this chapter.
(f) If the director determines it to be in the public interest, the director may pursue an order either prohibiting the licensee from designating a current authorized delegate as an authorized delegate, or suspending the licensee from designating a current authorized delegate as an authorized delegate for a period of time, after the authorized delegate has relinquished its designation under subsection (e).
(g) If an authorized delegate's designation as an authorized delegate is revoked, suspended, or relinquished, the revocation, suspension, or relinquishment does not impair or affect any obligation owed by that person under any existing lawful contracts.
(h) 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 an authorized delegate's designation as an authorized delegate through an emergency or another temporary order.
As added by P.L.198-2023, SEC.4.