2023 Nevada Revised Statutes › Chapter 671 - Money Transmission › NRS 671.205 - Required actions of licensee before engaging in money transmission through or allowing person to act as authorized delegate; authorized delegate to operate in compliance with chapter; required contract between licensee and authorized delegate; procedures upon suspension, revocation, surrender or expiration of license of licensee; money held in trust; use of subdelegate prohibited.

1. A licensee shall not engage in any business of money transmission through an authorized delegate or allow a person to act as an authorized delegate unless the licensee has:
(a) Adopted, and updated as necessary, written policies and procedures reasonably designed to ensure that authorized delegates of the licensee comply with applicable state and federal laws;
(b) Entered into a written contract with the authorized delegate that complies with subsection 3; and
(c) Conducted a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied with and likely will comply with applicable state and federal laws.
2. An authorized delegate shall operate in compliance with the provisions of this chapter.
3. A written contract required pursuant to subsection 1 must be signed by the licensee and the authorized delegate and must:
(a) Appoint the person proposed to be an authorized delegate who is signing the contract as the authorized delegate of the licensee with the authority to conduct money transmission on behalf of the licensee;
(b) Set forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;
(c) Require the authorized delegate to agree to comply fully with all applicable state and federal laws, rules and regulations pertaining to money transmission, including, without limitation, the provisions of this chapter, the regulations adopted pursuant thereto and the relevant provisions of the Bank Secrecy Act and the USA Patriot Act;
(d) Require the authorized delegate to remit and handle money, credits and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate;
(e) Impose a trust on money, credits and monetary value received for money transmission, net of fees, for the benefit of the licensee;
(f) Require the authorized delegate to prepare and maintain records as required by this chapter and the regulations adopted pursuant thereto, or as reasonably requested by the Commissioner;
(g) Acknowledge that the authorized delegate consents to examination or investigation by the Commissioner;
(h) State that the licensee is subject to regulation by the Commissioner and that, as part of that regulation, the Commissioner may suspend or revoke the designation of an authorized delegate or require the licensee to terminate the designation of an authorized delegate; and
(i) Acknowledge receipt of the written policies and procedures required by subsection 1.
4. If the license of a licensee is suspended, revoked, surrendered or expired, the licensee must, within 5 business days after the date on which such action occurred, provide documentation to the Commissioner that the licensee has notified all applicable authorized delegates of the licensee whose names are in a record filed with the Commissioner of the suspension, revocation, surrender or expiration of the license. Upon suspension, revocation, surrender or expiration of a license, applicable authorized delegates shall immediately cease to provide money transmission as an authorized delegate of the licensee.
5. An authorized delegate of a licensee holds in trust for the benefit of the licensee all money, net of fees, received from money transmission. If any authorized delegate commingles any money or credits received from money transmission with any other money or property owned or controlled by the authorized delegate, all commingled money and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money, net of fees, received from money transmission.
6. An authorized delegate may not use a subdelegate to conduct money transmission on behalf of a licensee.
7. As used in this section, "remit" means to make direct payments of money, credits or monetary value to a licensee or its representative authorized to receive money or to deposit money in an account specified by the licensee in a bank or credit union authorized to do business in this State.
(Added to NRS by 2023, 102)