Arkansas Administrative Code › Agency 214 - Arkansas Securities Department › Rule 214.00.11-002 - Money Services Rules

Current through Register Vol. 49, No. 6, June, 2024
CHAPTER 1
GENERAL PROVISIONS
RULE 102.
DEFINITIONS
When the terms listed below are used in the Arkansas Uniform
			 Money Services Act, any Rules or forms promulgated under the Arkansas Uniform
			 Money Services Act, or any order of the Commissioner under the Arkansas Uniform
			 Money Services Act, the following definitions shall apply, unless a contrary
			 definition is expressly provided or clearly required by the context, to the
			 extent that they do not conflict with the definitions set forth in the Arkansas
			 Uniform Money Services Act.
(1)
Act.
The term "Act" means the Arkansas Uniform Money Services Act,
		  Ark. Code Ann. §
									23-55-101
		  et seq., as the same may be codified and amended from time to time.
(2)
Applicant.
The term
		  "applicant" means a person who submits an application for a money transmission
		  or currency exchange license in Arkansas.
(3)
Application.
The term
		  "application" means the form prescribed by the Commissioner for filing in
		  connection with obtaining either a money transmission license or currency
		  exchange license in Arkansas, including all amendments, papers, documents and
		  exhibits incidental thereto.
(4)
Audited financial statement.
The term "audited financial
		  statement" means a financial statement prepared in accordance with generally
		  accepted accounting principles and audited by an independent accountant
		  according to generally accepted auditing standards in the United
		  States.
(5)
Commissioner.
The term "Commissioner" means the Arkansas
		  Securities Commissioner and includes the Commissioner's designees.
(6)
Currency exchange.
The term
		  "currency exchange" means exchanging the money of one government for money of
		  another government, or holding oneself out as able to exchange the money of one
		  government for money of another government. The following persons are not
		  considered currency exchangers:
(A)
		  Affiliated businesses that engage in currency exchange for a business purpose
		  other than currency exchange;
(B) A
		  person who provides currency exchange services for a person acting primarily
		  for a business, commercial, agricultural, or investment purpose when the
		  currency exchange is incidental to the transaction;
(C) A person who deals in coins or a person
		  who deals in money whose value is primarily determined because it is rare, old,
		  or collectible; and
(D) A person
		  who in the regular course of business chooses to accept from a customer the
		  currency of a country other than the United States in order to complete the
		  sale of a good or service other than currency exchange, that may include cash
		  back to the customer, and does not otherwise trade in currencies or transmit
		  money for compensation or gain.
(7)
Department.
The term
		  "Department" means the Arkansas Securities Department.
(8)
Engaged in the business of money
		  services.
The term "engaged in the business of money services," unless
		  otherwise provided, includes any person who holds himself out as being a
		  currency dealer or exchanger; an issuer of traveler's checks, money
		  orders
,
prepaid access, or stored value; a seller or
		  redeemer of traveler's checks, money orders
,
prepaid
		  access, or stored value; or who receives money or monetary value for the
		  purpose of transmitting said money or monetary value using a system outside
		  that of a conventional financial institution.
(9)
Medium of exchange.
The term
		  "medium of exchange" connotes that the value is accepted by a larger group than
		  the two parties to the change. Therefore, no monetary value, as that term is
		  defined in the Act, would exist if the product (i.e. gift certificate) or
		  payment mechanism (i.e. universal payment card) is only accepted by one
		  merchant.
(10)
Money
		  transmission.
The term "money transmission" means selling or issuing
		  payments instruments, stored value, prepaid access
,
or
		  receiving money or monetary value for transmission. The term excludes entities
		  that provide delivery services (e.g. courier or package delivery services) and
		  entities that act as mere conduits for the transmission of data (e.g. Internet
		  service providers). The term does, however, include the following:
(A) A bill payer service, except that the
		  term does not include a service that transfers money or monetary value directly
		  from a purchaser to a creditor of the purchaser or to an agent of the creditor;
		  and
(B) Any informal money transfer
		  system engaged in as a business for, or network of persons who engage as a
		  business in, facilitating the transfer between persons who engage as a business
		  in, facilitating the transfer of money outside the conventional financial
		  institutions system to a location within or outside the United
		  States.
(11)
Prepaid Access.
The term "prepaid access" means access to funds or
		  the value of funds that have been paid in advance and can be retrieved or
		  transferred at some point in the future through an electronic device or
		  vehicle, such as a card, code, electronic serial number, mobile identification
		  number, or personal identification number.
(12)
Principal.
The term
		  "principal" means any person who controls, directly or indirectly through one
		  or more intermediaries, alone or in concert with others, a twenty-five percent
		  (25%) or greater interest in a partnership, company, corporation, or
		  association, or the owner of a sole proprietorship.
(13)
Staff.
The term "Staff"
		  means the Staff of the Arkansas Securities Department.