Code of Maryland Regulations › Title 09 - MARYLAND DEPARTMENT OF LABOR › Subtitle 03 - COMMISSIONER OF FINANCIAL REGULATION › Chapter 09.03.14 - Money Transmitters › Section 09.03.14.03 - Persons Not Engaging in Money Transmission

Current through Register Vol. 51, No. 14, July 12, 2024
A. In accordance
				with the Maryland Money Transmission Act, the following persons are not
				engaging in money transmission when engaging in the activities described:
(1) An operator of a payment system when
				providing processing, clearing, or settlement services, between or among
				persons exempted under the Maryland Money Transmission Act or licensees, in
				connection with wire transfers, credit card transactions, debit card
				transactions, stored-value transactions, automated clearing house transfers, or
				similar funds transfers.
(2) A
				person appointed as an agent of a payee when collecting and processing a
				payment from a payor to the payee for goods or services, other than money
				transmission itself, provided to the payor by the payee, if:
(a) There exists a written agreement between
				the payee and the agent directing the agent to collect and process payments
				from payors on the payee's behalf;
(b) The terms of the written agreement
				required by §A(2)(a) of this regulation are consistent with a principal's
				appointment of an agent under Maryland law;
(c) The payee holds the agent out to the
				public as accepting payments for goods or services on the payee's
				behalf;
(d) Payment for the goods
				and services is treated as received by the payee upon receipt by the agent so
				that the payor's obligation is extinguished and there is no risk of loss to the
				payor if the agent fails to remit the funds to the payee;
(e) The agent is not serving in an escrow
				capacity in connection with the transaction;
(f) The agent is not acting as agent to more
				than one party in the transaction; and
(g) Payment by the agent to the payee occurs
				promptly and is not conditioned on the occurrence of any future event or
				performance by any party to the transaction.
(3) A person that acts as an intermediary by
				processing payments between an entity that has directly incurred an outstanding
				money transmission obligation to a sender, and the sender's designated
				recipient, if that the entity:
(a) Is properly
				licensed or exempt from licensing requirements under the Maryland Money
				Transmission Act;
(b) Provides a
				receipt, electronic record, or other written confirmation to the sender
				identifying the entity as the provider of money transmission in the
				transaction; and
(c) Bears sole
				responsibility to satisfy the outstanding money transmission obligation to the
				sender, including the obligation to make the sender whole in connection with
				any failure to transmit the funds to the sender's designated
				recipient.
(4) A person
				expressly appointed as a third-party service provider to or agent of an entity
				exempt under the Maryland Money Transmission Act solely to the extent that:
(a) That service provider or agent is acting
				on behalf of and pursuant to a written agreement with the exempt entity sets
				forth the specific functions that the service provider or agent is to perform;
				and
(b) The exempt entity assumes
				all risk of loss and all legal responsibility for satisfying the outstanding
				money transmission obligations owed to purchasers and holders of the
				outstanding money transmission obligations upon receipt of the purchaser's or
				holder's money or monetary value by the service provider or agent.