2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 152 - Regulation of Money Services Businesses › Subchapter I. Enforcement › Section 152.403. Suspension and Revocation of Money Services License

Sec. 152.403.  SUSPENSION AND REVOCATION OF MONEY SERVICES LICENSE.  (a)  The commissioner shall revoke a money services license if the commissioner finds that:
(1)  the money services licensee does not provide the security required under this chapter; or
(2)  for a money transmission licensee, the net worth of the licensee is less than the amount required under this chapter.
(b)  The commissioner may suspend or revoke a money services license or order a money transmission licensee to revoke the designation of an authorized delegate if the commissioner has reason to believe that:
(1)  the money services licensee has violated this chapter, a rule adopted or order issued under this chapter, a written agreement entered into with the department or commissioner, or any other state or federal law applicable to the licensee's money services business;
(2)  the money services licensee has refused to permit or has not cooperated with an examination or investigation authorized by this chapter;
(3)  the money services licensee has engaged in fraud, knowing misrepresentation, deceit, or gross negligence in connection with the operation of the licensee's money services business or any transaction subject to this chapter;
(4)  an authorized delegate of the money transmission licensee has knowingly violated this chapter, a rule adopted or order issued under this chapter, or a state or federal anti-money-laundering or terrorist funding law, and the licensee knows or should have known of the violation and has failed to make a reasonable effort to prevent or correct the violation;
(5)  the competence, experience, character, or general fitness of the money services licensee or the authorized delegate of a money transmission licensee, or a principal of, person in control of, or responsible person of a money services licensee or authorized delegate of a money transmission licensee, indicates that it is not in the public interest to permit the licensee or authorized delegate to provide money services;
(6)  the money services licensee has engaged in an unsafe or unsound act or practice or has conducted business in an unsafe or unsound manner;
(7)  the money services licensee has suspended payment of the licensee's obligations, made a general assignment for the benefit of the licensee's creditors, or admitted in writing the licensee's inability to pay debts of the licensee as they become due;
(8)  the money transmission licensee has failed to terminate the authority of an authorized delegate after the commissioner has issued and served on the licensee a final order finding that the authorized delegate has violated this chapter;
(9)  a fact or condition exists that, if it had been known at the time the money services licensee applied for the license, would have been grounds for denying the application;
(10)  the money services licensee has engaged in false, misleading, or deceptive advertising;
(11)  the money services licensee has failed to pay a judgment entered in favor of a claimant or creditor in an action arising out of the licensee's activities under this chapter not later than the 30th day after the date the judgment becomes final or not later than the 30th day after the date the stay of execution expires or is terminated, as applicable;
(12)  the money services licensee has knowingly made a material misstatement or has suppressed or withheld material information on an application, request for approval, report, or other document required to be filed with the department under this chapter; or
(13)  the money services licensee has committed a breach of trust or of a fiduciary duty.
(c)  In determining whether a money services licensee has engaged in an unsafe or unsound act or practice or has conducted business in an unsafe or unsound manner, the commissioner may consider factors that include:
(1)  the size and condition of the licensee's provision of money services;
(2)  the magnitude of the loss or potential loss;
(3)  the gravity of the violation of this chapter or rule adopted or order issued under this chapter;
(4)  any action taken against the licensee by this state, another state, or the federal government; and
(5)  the previous conduct of the licensee.
(d)  The commissioner's order suspending or revoking a money services license or directing a money transmission licensee to revoke the designation of an authorized delegate is subject to Section 152.409, unless the order is issued as an emergency order.  The commissioner may issue an emergency order suspending a money services license or directing a money transmission licensee to revoke the designation of an authorized delegate in accordance with Section 152.410 if the commissioner finds that the factors identified in Section 152.410(b) exist.
Added by Acts 2023, 88th Leg., R.S., Ch. 277 (S.B. 895), Sec. 1.01, eff. September 1, 2023.