reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-520 - What trust account records am I required to keep?

Current through Register Vol. 24-14, July 15, 2024
You are required to keep the following trust account
							records:
(1) Legible copies of all
						deposits made to the trust account including duplicate deposit slips validated
						by the bank or bearing the signature of the designated escrow officer or branch
						designated escrow officer, and including the date of actual deposit, wires,
						separate receipts, or other evidence of the deposit of funds into the trust
						account;
(2) Legible copies of all
						disbursements made from the trust account, including checks, wires, or other
						evidence of any disbursement from the trust account;
(3) Legible copies of all bank statements for
						the trust account, including all paid checks or copies of paid checks,
						electronic or otherwise, provided that such copies are made in such a manner
						that the endorsement on the paid check is visible and readable;
(4) A client's ledger containing an
						individual ledger sheet for each escrow transaction or collection account,
						unless you use a computer accounting system. If you use a computer accounting
						system, an individual ledger sheet does not need to be maintained in the
						transaction files until the closing of the escrow transaction or collection
						account as long as the computer accounting system records provide the status of
						the escrow transaction or collection account funds on a daily basis;
(5) Legible copies of all written receipts
						and pre-numbered checks, if you use a manual trust accounting system to
						administer the trust account.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-520, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-530 - Records

Current through Register Vol. 24-14, July 15, 2024
What are the additional records
							requirements?
(1) In addition to
						trust account records, you are required to keep additional records, including:
(a) Transaction files containing all
						agreements, contracts, documents, leases, escrow instructions, settlement
						statements and correspondence for each transaction;
(b) Reconciled bank statements and canceled
						checks for all bank accounts of the escrow agent including, but not limited to,
						the trust accounts, individual trust accounts, and general business operating
						accounts of the agent;
(c) All
						checks and receipts produced by any computer accounting system. These checks
						and receipts must be sequentially numbered. You must retain the original of any
						voided or incomplete sequentially numbered check or receipt which was not
						issued.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-532 - Information security program required by the federal Safeguards Rule implementing the Gramm-Leach-Bliley Act

Current through Register Vol. 24-14, July 15, 2024
(1) Generally, applicants and licensees must
						have a written program appropriate to the company's size and complexity, the
						activity conducted, and the sensitivity of information at issue. The program
						must ensure the information's security and confidentiality, protect against
						anticipated threats or hazards to the security or integrity of the information,
						and protect against unauthorized access to or use of the information.
(2) Specifically, at a minimum the program
						described in subsection (1) of this section must:
(a) Designate an employee or employees to
						coordinate the information security program;
(b) Identify and assess the risks to customer
						information;
(c) Design and
						implement information safeguards to control the risks identified in the risk
						assessment and regularly monitor and test the safeguards;
(d) Select service providers that can
						maintain appropriate safeguards and oversee their handling of customer
						information; and
(e) At least
						annually evaluate and adjust the program in light of relevant circumstances,
						including changes in business or operations, or the results of testing and
						monitoring the effectiveness of the implemented safeguards.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-534 - Consumer financial information privacy under the Gramm-Leach-Bliley Act (GLBA) and Regulation P

Current through Register Vol. 24-14, July 15, 2024
(1)
						Licensees must comply with GLBA, as amended, and Regulation P. Unless subject
						to an exception under GLBA, as amended, licensees must, at a minimum:
(a) Provide customers with initial and annual
						notices regarding their privacy policies. These notices describe whether and
						how the licensee shares consumers' nonpublic personal information, including
						personally identifiable financial information, with other entities;
						and
(b) If licensees share certain
						customer information with particular types of third parties, the institutions
						are also required to provide notice to their customers and an opportunity to
						opt out of the sharing. If a licensee limits its types of sharing to those
						which do not trigger opt-out rights, it may provide a "simplified" annual
						privacy notice to its customers that does not include opt-out
						information.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-536 - Notice to consumers of data breach

Current through Register Vol. 24-14, July 15, 2024
If the licensee's data is compromised, the licensee may be
							subject to chapter 19.255 RCW and may have to provide notices to consumers
							whose information was acquired. Under certain circumstances notice of the
							breach may also be required by the attorney general's office.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-538 - Business resumption plan

Current through Register Vol. 24-14, July 15, 2024
Licensees must have a written plan that details the
							company's response and recovery to any event that results in damage to or
							destruction of books and records. The plan must be maintained as part of the
							licensee's books and records.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-540 - What are my obligations regarding escrow transactions?

Current through Register Vol. 24-14, July 15, 2024
The escrow agent is responsible for providing escrow
							services between the principal parties. In addition to complying with the act
							and these rules, an escrow agent must at a minimum:
(1)
Escrow instructions.
(a) Prepare or accept an instrument of escrow
						instructions from and agreed to by the principal parties and the escrow agent.
						The escrow instructions must be signed by the principal parties. Escrow
						instructions must contain any and all agreements between the principal parties
						and the escrow agent or incorporate other written agreements by reference. The
						escrow instructions must not be modified except by written agreement signed by
						all principal parties and accepted by the escrow agent.
(b) Comply with the escrow instructions for
						completing the settlement statement. All funds disbursed on the settlement
						statement should be bona fide and supported with adequate documents.
(c) Provide the services and perform all acts
						pursuant to the escrow instructions.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-550 - Am I obligated to provide escrow services within the time period specified in the escrow instructions?

Current through Register Vol. 24-14, July 15, 2024
Yes. An escrow agent must perform all acts required of the
							escrow agent as expeditiously as possible and within any time period identified
							in the escrow instructions. Intentional or negligent delay in such performance
							is a violation of
							RCW
							   18.44.301, and provides grounds under
							RCW
							   18.44.430(1)(h) and (i)    for
							legal action against the escrow agent by the department.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-550, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-560 - What requirements must I follow when disbursing funds or other things of value?

Current through Register Vol. 24-14, July 15, 2024
(1) The escrow
						agent must disburse funds as set forth in the escrow instructions or collection
						agreement. Not doing so is a violation of
						RCW
						   18.44.430(1)(e). Funds and
						other items or documents must be paid and/or disbursed immediately upon closing
						of the transaction or as specifically agreed to in writing by the principal
						parties, and all funds must be disbursed in compliance with
						RCW
						   18.44.400(3) and these
						rules.
(2)
(a) Upon written notice from any principal
						party that the ownership of the funds is in dispute or is unclear based on the
						written agreements of the parties, the escrow agent must hold such funds until
						it receives written notice from all principal parties that the dispute has been
						resolved. In lieu of holding such funds, the escrow agent may interplead the
						funds into a court of competent jurisdiction pursuant to
						chapter
						4.08 RCW.
(b) For purposes of complying with (a) of
						this subsection, escrow agents should construe "written notice from any
						principal party that the ownership of the funds is in dispute" broadly so that
						many various written forms evidencing one party's or the other's belief in
						ownership of the subject funds is included.
(c) So too should the escrow agent construe
						"written demand" in
						RCW
						   64.04.220(2) broadly to
						include various forms of written correspondence and documents.
(d) Upon notification of a dispute between
						the principal parties, the department may, at its discretion, order the escrow
						agent to interplead the funds into a court of competent jurisdiction. If the
						department orders an escrow agent to interplead funds, the escrow agent may
						deduct only the actual costs of interpleading from the escrow funds.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-570 - When must I notify the department about a civil lawsuit, criminal complaint, or administrative action against me or my escrow officers or employees?

Current through Register Vol. 24-14, July 15, 2024
You must, within twenty-four hours after service or
							discovery of a civil lawsuit, criminal complaint, or administrative action,
							notify the department . The notices must contain the following:
(1) For any civil lawsuit, the subject matter
						of the lawsuit. You must provide the department with a copy of the lawsuit when
						one becomes available, regardless of any pending appeal.
(2) For any criminal complaint, information,
						indictment, or conviction (including a plea of guilty or nolo contendere) for a
						felony or a gross misdemeanor involving dishonesty, the subject matter of the
						action. You must provide the department with a copy of the criminal complaint,
						information, indictment, or conviction when one becomes available, regardless
						of any pending appeal.
(3) For the
						entry of a civil court order, verdict, or judgment, against you in any court of
						competent jurisdiction in which the subject matter involves any escrow or
						business related activity, the subject matter of the action, regardless of any
						pending appeal.
(4) For any
						administrative action or Washington state bar association disciplinary action
						taken against you, an escrow officer or any of your employees for subject
						matter involving escrow or related business activities, the subject matter of
						the action. You must provide the department with a copy of the action when one
						becomes available, regardless of any pending appeal.
(5) If any of the above described actions
						involves your employee notifying the department under this section does not
						change your responsibilities under WAC
						208-680-275.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-570, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › RECORDS AND RESPONSIBILITIES › Section 208-680-580 - What are the responsibilities of a licensed escrow officer?

Current through Register Vol. 24-14, July 15, 2024
Every licensed escrow officer must:
(1) Be knowledgeable of, keep current with,
						and comply with chapter 18.44 RCW and the rules ;
(2) Keep the department informed of his or
						her current home address;
(3)
						Ensure accessibility of the escrow agent's offices and records to
						representatives of the department; and
(4) Promptly inform the department if he or
						she loses his or her affiliation with an escrow agent, and to stop providing
						escrow services until he or she associates with a licensed escrow
						agent.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-580, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › EXAMINATIONS, INVESTIGATIONS, ENFORCEMENT, SANCTIONS, AND COSTS › Section 208-680-610 - What are the department's examination powers under the act?

Current through Register Vol. 24-14, July 15, 2024
(1) For the purposes of determining
						compliance with chapter 18.44 RCW and chapter 208-680 WAC, the department may
						examine, wherever located, the records used in the business of every licensee
						and any person subject to the act.
(2) The department may make necessary inquiry
						of the business or personal affairs of each person identified in subsection (1)
						of this section for the purposes of determining compliance with the act and
						these rules. In conducting examinations, the department may:
(a) Access, during reasonable business hours,
						the offices and places of business, books, accounts, papers, files, records,
						including electronic records, computers, safes, and vaults of all such persons.
						Access must be given to both the trust account records and general business
						operating account records;
(b)
						Interview or take sworn testimony of any person subject to
						RCW
						   18.44.021, or any employee or independent
						contractor of any person subject to
						RCW
						   18.44.021;
(c) Interview or take sworn testimony of any
						principal party or agent to the transaction;
(d) Require the filing of statements in
						writing by any person, under oath or otherwise, as to all facts and
						circumstances concerning the matters under examination;
(e) Copy, or request to be copied, any items
						described in this section;
(f)
						Analyze and review any items described in this section;
(g) Require assistance, as necessary, from
						any employee or person subject to the act;
(h) Conduct meetings and exit reviews with
						owners, management, officers, or employees of any person subject to the
						act;
(i) Prepare and deliver, as
						necessary, a report of examination requiring a response from the recipient;
						and
(j) Retain attorneys,
						appraisers, independent certified public accountants, or other professionals
						and specialists as examiners, auditors, or investigators. The cost of the
						services provided must be paid by the person who is the subject of the
						examination or investigation.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › EXAMINATIONS, INVESTIGATIONS, ENFORCEMENT, SANCTIONS, AND COSTS › Section 208-680-630 - What are the department's enforcement powers under the act?

Current through Register Vol. 24-14, July 15, 2024
The department may conduct enforcement activities that
							include, but are not limited to:
(1)
						Enter orders, including temporary orders to cease and desist, compelling any
						person to cease and desist from an unlawful practice, and to take such
						affirmative action as in the judgment of the department will carry out the
						purposes of this chapter;
(2) Enter
						charges for violations of chapter 18.44 RCW and chapter 208-680 WAC;
(3) Bring an action, with or without prior
						administrative proceedings, in the superior court to enjoin conduct or to
						enforce compliance with chapter 18.44 RCW, or any rule, regulation, or order of
						the department;
(4) Appoint a
						receiver or conservator to take over, operate, or liquidate any licensed escrow
						agent;
(5) Hold hearings;
(6) Make referrals to other regulatory or law
						enforcement agencies; or
(7) Under
						specific circumstances, take possession of the property and escrow business of
						a licensed escrow agent. See WAC
						208-680-645.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-630, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › EXAMINATIONS, INVESTIGATIONS, ENFORCEMENT, SANCTIONS, AND COSTS › Section 208-680-640 - What sanctions may the department impose on a licensed escrow agent or escrow officer?

Current through Register Vol. 24-14, July 15, 2024
(1) The
						department may take any or all of the following actions :
(a) Deny, suspend, or revoke an escrow agent
						or escrow officer license for any violation of
						RCW
						   18.44.430;
(b) Remove or prohibit any principal officer,
						controlling person, director, employee, or licensed escrow officer from
						participation in the conduct of the affairs of any licensed escrow
						agent;
(c) Order a licensed escrow
						agent or escrow officer to pay restitution to an injured party; or
(d) Impose a fine of up to one hundred
						dollars per day against any escrow officer or agent for each day's violation of
						chapter 18.44 RCW or these rules.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › EXAMINATIONS, INVESTIGATIONS, ENFORCEMENT, SANCTIONS, AND COSTS › Section 208-680-645 - Possession of escrow agent property and business

Current through Register Vol. 24-14, July 15, 2024
(1)
When may the department take
						control of my escrow agent property and business?
The department may
						take control of a licensed escrow agent if, as a result of an examination,
						report, investigation, or complaint, it appears to the department that the
						licensed escrow agent:
(a) Is conducting
						business in an unsafe and unsound manner that poses a risk to the
						public;
(b) Has suspended payment
						of its trust obligations;
(c) Has
						refused to comply with a lawfully issued order of the department.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › EXAMINATIONS, INVESTIGATIONS, ENFORCEMENT, SANCTIONS, AND COSTS › Section 208-680-647 - Seizure of escrow agent property business by the department - Notice to licensee

Current through Register Vol. 24-14, July 15, 2024
Under the circumstances set forth in WAC
							208-680-645, the department may
							give the licensee notice and opportunity to correct an unsafe or unsound
							condition. If the licensee fails to immediately comply with the terms of the
							notice or within such time as the department may allow, then the department may
							take possession of the escrow agent property and business.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-647, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › EXAMINATIONS, INVESTIGATIONS, ENFORCEMENT, SANCTIONS, AND COSTS › Section 208-680-648 - What are my rights if the department takes possession of my escrow agent property business without cause?

Current through Register Vol. 24-14, July 15, 2024
You may challenge the department's decision under the
							Administrative Procedure Act,
							chapter
							34.05
							RCW.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-648, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › EXAMINATIONS, INVESTIGATIONS, ENFORCEMENT, SANCTIONS, AND COSTS › Section 208-680-650 - What are the fees I must pay for examinations and investigations?

Current through Register Vol. 24-14, July 15, 2024
(1) You will be
						charged $62.50 per hour for an examination or investigation or both pursuant to
						WAC 208-680-610 or
						208-680-620.
(2) You will also be charged the expenses of
						an examination or investigation or both. The expenses may include, but are not
						limited to, staff time, travel, lodging, per diem, and any other expenses . At
						a reasonable time following each examination or investigation performed, the
						director must provide the person examined with an invoice for the expenses
						incurred during the examination or investigation. Payment of the invoiced
						amount must be made within thirty days of the date of the invoice to avoid the
						addition of interest charges to the amount due.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-650, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › EXAMINATIONS, INVESTIGATIONS, ENFORCEMENT, SANCTIONS, AND COSTS › Section 208-680-660 - Abandoned escrow records

Current through Register Vol. 24-14, July 15, 2024
What happens if I fail to maintain my records after
							closing?
If you do not maintain your records as required, you are
							responsible for the costs of collection, storage, conversion to electronic
							formats, and proper destruction.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-660, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › ESCROW ADVISORY COMMITTEE › Section 208-680-710 - Organization of committee

Current through Register Vol. 24-14, July 15, 2024
(1)
What is the escrow committee, and what are its duties?
The escrow
						committee is composed of the director or his or her designee and five board
						members appointed by the director. The committee provides advice on the escrow
						officer test, acts in an advisory capacity to the department regarding the
						activities of escrow agents and escrow officers, and performs such other duties
						and functions as prescribed by chapter 18.44 RCW.
(2)
Are escrow committee meetings open
						to the public?
Yes. Meetings of the escrow committee are open to the
						public. Records, minutes, and recordings of each meeting are also available on
						the department's web site,www.dfi.wa.gov [File Link Not Available].
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-710, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › ESCROW ADVISORY COMMITTEE › Section 208-680-720 - Escrow committee meeting notice

Current through Register Vol. 24-14, July 15, 2024
I would like to know when the next meeting of the
							escrow committee will be held. How can I get this information?
If you
							would like to know about the date, time, place and agenda of the escrow
							committee meetings, you may make a request of the department, or may join the
							department's escrow e-mail distribution list, the listserv,
							athttp://dfi.wa.gov/about/listservs.htm [File Link Not Available].
Dates and times of the escrow committee's meetings are also
							posted on the department's web site,www.dfi.wa.gov [File Link Not
							Available].
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-720, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part A - DEFINITIONS › Section 208-690-010 - Definitions

Current through Register Vol. 24-14, July 15, 2024
What definitions are applicable to these rules? In addition
							to the definitions herein, the definitions in chapter 19.230 RCW apply
							throughout this chapter unless the context clearly requires otherwise.
"Act" means the Uniform Money Services Act, chapter 19.230
							RCW.
"Advertise, advertising, or advertising material" means any
							form of sales or promotional materials used in connection with the business.
							Advertising material includes, but is not limited to, newspapers, magazines,
							leaflets, flyers, direct mail, indoor or outdoor signs or displays,
							point-of-sale literature or educational materials, other printed materials;
							radio, television, public address system, or other audio broadcasts; internet
							pages, social media pages, instant messages, or electronic bulletin
							boards.
"AML compliance officer" means the individual(s) employed by
							the licensee or licensee's parent or affiliate designated to implement the
							anti-money laundering (AML) program.
"Audited financial statement" means a statement prepared by
							an independent accountant according to generally accepted accounting
							principles.
"Bill payment" service means a type of money transmission
							when an intermediary accepts funds from a consumer for transmission to a
							merchant for payment on a consumer's account. The intermediary may or may not
							charge a fee for this service.
"Department" means the department of financial
							institutions.
"Funds" means money or its equivalent value.
"NMLS" means a multistate licensing system developed and
							maintained by the Conference of State Bank Supervisors for licensing and
							registration.
"Online currency exchanger" means a currency exchanger who
							transacts business over the internet or other electronic medium, regardless of
							whether the currency exchanger also has a physical location in Washington
							state.
"Principal" means any person who controls, directly or
							indirectly through one or more intermediaries, alone or in concert with others,
							a ten percent or greater interest in a partnership, company, corporation, or
							association, or the owner of a sole proprietorship.
"RCW" means the
Revised Code of
							Washington
.
"Virtual currency storage" means storing access to virtual
							currency owned by another person.
Statutory Authority:
								RCW
								   43.320.040,
								19.230.310,   2010 c  37. 10-20-123,
								§
											208-690-010, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   19.230.310 and
								43.320.040. 04-15-005, §
											208-690-010, filed 7/7/04,
								effective 8/7/04.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part A - DEFINITIONS › Section 208-690-014 - How does the department interpret the definitions in RCW 19.230.010?

Current through Register Vol. 24-14, July 15, 2024
(1) "Currency
						exchange." For purposes of
						RCW
						   19.230.010(8)(b),
						"investment" means an investment that is not money of a government.
(2) "Responsible individual." The responsible
						individual must:
(a) Be a citizen of the
						United States or have legal immigration status to work in the United
						States;
(b) Hold W-2 employee
						status with the licensee;
(c) Be
						knowledgeable of the laws and rules implementing the act; and
(d) Be responsible for the company's
						compliance with applicable state and federal laws, rules and
						regulations.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part B - APPLICATION OF CHAPTER-EXEMPTIONS › Section 208-690-015 - What activities are excluded from the act?

Current through Register Vol. 24-14, July 15, 2024
(1) See also
						RCW
						   19.230.020.
(2) The issuance, sale, use, redemption, or
						exchange of closed-loop prepaid access.
(3) The issuance or sale of open-loop prepaid
						access when the value is covered by federal deposit insurance immediately upon
						sale or issue. See the Federal Deposit Insurance Corporation (FDIC) Financial
						Institution Letter 129-2008 dated November 13, 2008, to determine if the
						underlying funds are covered by FDIC insurance immediately upon sale or issue.
(4) Storage of virtual currency by
						a person when the virtual currency is owned by others and the person storing
						the virtual currency does not have the unilateral ability to transmit the value
						being stored.
Statutory Authority:
								RCW
								   43.320.040,
								19.230.310,   2010 c  37. 10-20-123,
								§
											208-690-015, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part B - APPLICATION OF CHAPTER-EXEMPTIONS › Section 208-690-016 - Can the director waive the licensing provisions of the act?

Current through Register Vol. 24-14, July 15, 2024
Yes. The director has the authority to waive the licensing
							provisions of the act upon a determination the waiver facilitates commerce and
							protects consumers.
Statutory Authority:
								RCW
								43.320.040,
								19.230.310,   2010 c  37. 10-20-123,
								§
											208-690-016, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part B - APPLICATION OF CHAPTER-EXEMPTIONS › Section 208-690-018 - How does the department interpret the activities that are excluded in RCW 19.230.020?

Current through Register Vol. 24-14, July 15, 2024
The following are excluded:
(1) Pursuant to
						RCW
						   19.230.020(6) and (7):
(a) Activities regulated by the Commodities
						Futures Trading Commission (CFTC) or exempt from registration with the
						CFTC;
(b) Clearance or settlement
						services provided by a person to a board of trade as designated by the
						CFTC.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-020 - Voluntary license application

Current through Register Vol. 24-14, July 15, 2024
(1) Any person otherwise exempt from
						licensing under the provisions of the act may voluntarily submit an application
						to the director for a money transmitter or currency exchange license. The
						director shall review such application and may grant or deny licenses to such
						applicants upon the same grounds and subject to payment of the same fees as are
						applicable to persons required to be licensed.
(2) Upon receipt of a license under this
						section, the licensee is required to maintain a valid license and is subject to
						all the provisions of the act and these rules until the license is surrendered
						or revoked.
Statutory Authority:
								RCW
								   43.320.040,
								19.230.310,   2010 c  37. 10-20-123,
								§
											208-690-020, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   19.230.310 and
								43.320.040. 04-15-005, §
											208-690-020, filed 7/7/04,
								effective 8/7/04.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-030 - License application What must I do to apply for a license?

Current through Register Vol. 24-14, July 15, 2024
You must file:
(1)
						A completed application in a form and in a medium prescribed by the director
						through the NMLS. See
						RCW
						   19.230.040 for the required contents of the
						application. In addition, the application must contain:
(a) The fingerprints of the proposed
						responsible individual and a personal credit report from a recognized
						independent credit reporting agency on the proposed responsible
						individual;
(b) A list of the
						applicant's proposed authorized delegates including the business name and any
						additional names by which the business may be known, the business address and
						name of the primary contact person for each authorized delegate, and the
						locations in this state where the applicant and its authorized delegates
						propose to engage in the provision of money services;
(c) A full description of the screening
						process used by the applicant in selecting authorized delegates, including a
						sample of any forms used, and the method used to screen for criminal history;
						and
(d) Identification of the bank
						account established for the business including, but not limited to, the bank
						name, address, account number, and account type.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-031 - What will happen if I abandon my license application?

Current through Register Vol. 24-14, July 15, 2024
If you do not respond as directed within forty-five days to
							the department's request for additional required information, your money
							transmission or currency exchange license application is considered abandoned
							and you forfeit all fees paid. Failure to provide the requested information
							will not affect new applications filed after the abandonment. You may reapply
							by submitting a new application package and new application
							fee.
Statutory Authority:
								RCW
								43.320.040,
								19.230.310,   2010 c  37. 10-20-123,
								§
											208-690-031, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-035 - Authorized delegates What are the rules I must comply with when I have authorized delegates?

Current through Register Vol. 24-14, July 15, 2024
(1)
						Only a licensee may designate an authorized delegate.
(2) A person accepting consumers' funds for
						transmission through an exempt or excluded entity under
						RCW
						   19.230.020 is not an authorized delegate but
						is a money transmitter and must be licensed under the act.
(3) Any person you designate to provide money
						services on your behalf is an authorized delegate, regardless of whether that
						person would be exempt or excluded from the application of chapter 19.230 RCW
						if they provided money services on their own behalf.
(4) Your authorized delegates must be
						physically located in the state of Washington unless you have received prior
						approval from the director to designate an authorized delegate physically
						located outside of the state of Washington.
(5) The licensee has supervisory authority
						over the actions of the authorized delegate when providing services on behalf
						of the licensee. The department may take action against a licensee and/or the
						authorized delegate for any actions by the authorized delegate on behalf of the
						licensee in violation of the act or rules.
(6) A written contract between you and an
						authorized delegate must contain, among all the other contract provisions,
						provisions with language substantially similar to the following:
(a) The authorized delegate must operate in
						full compliance with chapter 19.230 RCW and the rules adopted under this
						chapter.
(b) The authorized
						delegate is prohibited from using sub-delegates or conducting business from
						locations not authorized by the department.
(c) A description of the specific money
						services you authorize the delegate to perform on your behalf.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-036 - Authorized delegate advertising

Current through Register Vol. 24-14, July 15, 2024
An authorized delegate must not advertise or provide money
							services under its own name without an equally prominent display of the
							licensee's name, in close proximity, on all advertising, including web sites.
							An authorized delegate must not use its name alone when advertising money
							services provided on behalf of the licensee.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-040 - Surety bond-Money transmitters

Current through Register Vol. 24-14, July 15, 2024
What are the bonding requirements?
(1) You must continuously maintain a surety
						bond as required by
						RCW
						   19.230.050, issued by a company authorized to
						do surety business in this state, as a surety. The surety may not be a wholly
						owned subsidiary or affiliate of the applicant or licensee.
(2) The penal sum of the bond must be
						calculated quarterly during the first year of licensing and thereafter
						annually. The calculation must be based on the previous twelve months' money
						transmission and payment instrument dollar volume. The bond amount must be
						calculated at ten thousand dollars for every one million dollars of money
						transmission and payment instrument dollar volume. The minimum surety bond
						amount is ten thousand dollars. The maximum surety bond amount is five hundred
						fifty thousand dollars.
(3) The
						initial bond amount will be ten thousand dollars and must be reevaluated based
						on the schedule set forth in subsection (2) of this section.
(4) Depending on the financial services you
						provide, you may be required to hold the bond for up to five years after the
						date you cease to provide money services in this state.
(5) The director may provide an alternative
						to a bond under certain circumstances that would not compromise consumer
						protection or allow the company to operate in an unsafe or unsound
						manner.
Statutory Authority:
								RCW
								   43.320.040,
								19.230.310,   2010 c  37. 10-20-123,
								§
											208-690-040, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   19.230.310 and
								43.320.040. 04-15-005, §
											208-690-040, filed 7/7/04,
								effective 8/7/04.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-041 - Surety bond-Online currency exchangers What are the bonding requirements?

Current through Register Vol. 24-14, July 15, 2024
(1) You
						must continuously maintain a surety bond as required by
						RCW
						   19.230.055, issued by a company authorized to
						do surety business in this state, as a surety. The surety may not be a wholly
						owned subsidiary or affiliate of the applicant or licensee.
(2) The penal sum of the bond must be
						calculated quarterly during the first year of licensing and thereafter
						annually. The calculation must be based on the previous twelve months' online
						currency exchange dollar volume. The bond amount must be calculated at ten
						thousand dollars for every one million dollars of currency exchange dollar
						volume. The minimum surety bond amount is ten thousand dollars. The maximum
						surety bond amount is fifty thousand dollars.
(3) The initial bond amount will be ten
						thousand dollars and must be reevaluated based on the schedule set forth in
						subsection (2) of this section.
(4)
						The bond must cover claims for at least one year after the date of an online
						currency exchanger licensee's violation of the chapter or the licensee ceases
						to provide online currency exchange services in this state, whichever is
						longer.
(5) The director may
						provide an alternative to a bond under certain circumstances.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-045 - Alternatives to the surety bond

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority:
								RCW
								   43.320.040,
								19.230.310,   2010 c  37. 10-20-123,
								§
											208-690-045, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   19.230.310 and
								43.320.040. 04-15-005, §
											208-690-045, filed 7/7/04,
								effective 8/7/04.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-690 - Regulation of money services providers › Part C - LICENSING › Section 208-690-050 - Increase of surety bond

Current through Register Vol. 24-14, July 15, 2024
Will the department ever require an increase in the
							amount of the surety bond?
The director may increase the amount of the
							surety bond, to a maximum of one million dollars, if the financial condition of
							a money transmitter or online currency exchanger applicant or licensee so
							requires. The director may consider, without limitation, the following
							criteria:
(1) Significant reduction of
						net worth.
(2) Financial
						losses.
(3) Potential losses
						resulting from violations of chapter 19.230 RCW, or these rules.
(4) Licensee filing for bankruptcy.
(5) The initiation of any proceedings against
						the licensee in any state, by any federal agency, or in any foreign country.
						This includes the filing of material litigation.
(6) The filing of a state or federal criminal
						charge against the licensee, person in control, responsible individual,
						executive officer, board director, AML compliance officer, employee, authorized
						delegate or principal, based on conduct related to providing money services or
						money laundering.
(7) A licensee,
						executive officer, board director, AML compliance officer, other person in
						control, responsible individual, principal or authorized delegate being
						convicted of a crime.
(8) Any
						unsafe or unsound practice.
(9) A
						judicial or administrative finding against a money transmitter licensee under
						chapter 19.86 RCW, or an examination report finding that the money transmitter
						licensee engaged in an unfair or deceptive act or practice in the conduct of
						its business.
(10) The nature and
						volume of the projected or established business activities.
(11) Other events and circumstances that, in
						the judgment of the director, impair the ability of the licensee to meet its
						obligations to its money services customers.
Statutory Authority:
								RCW
								   43.320.040,
								19.230.310,   2010 c  37. 10-20-123,
								§
											208-690-050, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   19.230.310 and
								43.320.040. 04-15-005, §
											208-690-050, filed 7/7/04,
								effective 8/7/04.