Chapter 120. Money Transmitters
10VAC5-120-10. Definitions.
The following words and terms when used in Chapter 19.1 or in this chapter shall have the following meanings unless the context clearly indicates otherwise:
"Authorized delegate," "control," "group of persons acting in concert," "key individual," "licensee," "monetary value," "money," "money transmission," "NMLS," "outstanding money transmission obligations," "person," "receiving money for transmission," and "tangible net worth" shall have the meanings ascribed to them in § 6.2-1922 of the Code of Virginia.
"Bureau," "commission," and "commissioner" shall have the meanings ascribed to them in § 6.2-100 of the Code of Virginia.
"Chapter 19" means Chapter 19 (§ 6.2-1900 et seq.) of Title 6.2 of the Code of Virginia.
"Chapter 19.1" means Chapter 19.1 (§ 6.2-1922 et seq.) of Title 6.2 of the Code of Virginia.
"Generally accepted accounting principles" means standard accounting guidelines as established and administered by the American Institute of Certified Public Accountants (AICPA) and the United States Financial Accounting Standards Board (FASB).
"Parents," for purposes of § 6.2-1931 A 12 of the Code of Virginia, means any persons that control an applicant.
"Subsidiaries," for purposes of § 6.2-1931 A 12 of the Code of Virginia, means any persons that are controlled by an applicant. For purposes of this definition, "controlled" shall be construed in accordance with the definition of "control" in § 6.2-1922 of the Code of Virginia.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 12, Issue 8, eff. January 1, 1996; amended, Virginia Register Volume 28, Issue 20, eff. June 1, 2012; Volume 31, Issue 12, eff. February 15, 2015; Volume 35, Issue 24, eff. July 15, 2019; Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-15. Licensing and applications.
A. Applications for a license under Chapter 19.1 shall be made through the NMLS in accordance with instructions provided by the commissioner. The commissioner may provide these instructions through the NMLS, on the commission's website, or by any other means the commissioner deems appropriate.
B. Pursuant to § 6.2-1931 A 15 of the Code of Virginia, an application for a license shall include a copy of the applicant's audited financial statements for the most recent fiscal year and for the two-year period preceding the submission of the application. An applicant that has not yet completed a full fiscal year shall submit with its license application an audited financial statement that is less than a year old as of the date that the application is filed with the bureau.
C. The unaudited financial statements required by § 6.2-1931 A 16 of the Code of Virginia shall be certified by a key individual.
D. The exemptions in § 6.2-1923 of the Code of Virginia that are available to certain persons to the extent specified in § 6.2-1923 of the Code of Virginia shall not be construed to extend to persons in the course of providing additional services or engaging in other activities that are subject to Chapter 19.1 unless the services or activities are covered by a different exemption.
Statutory Authority
§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-20. Tangible net worth.
A. Tangible net worth shall be demonstrated at initial application through the applicant's most recent audited and certified unaudited financial statements filed in accordance with § 6.2-1931 A 15 and A 16 of the Code of Virginia and 10VAC5-120-15 B and C.
B. A licensee shall demonstrate tangible net worth through its audited financial statements filed pursuant to § 6.2-1939 of the Code of Virginia and reports of condition (i.e., call reports) filed pursuant to § 6.2-1938 of the Code of Virginia and 10VAC5-120-40 A.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 12, Issue 8, eff. January 1, 1996; amended, Virginia Register Volume 12, Issue 22, eff. July 1, 1996; Volume 35, Issue 24, eff. July 15, 2019; Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-30. Surety bonds and alternative security devices.
A. The form of the surety bond under § 6.2-1951 of the Code of Virginia shall be prescribed and provided by the commissioner. The bond shall be submitted prior to the issuance of a license and shall be maintained continuously thereafter as long as the licensee or former licensee has outstanding money transmission obligations.
B. The written notice of cancellation required by § 6.2-1951 F of the Code of Virginia shall be submitted to the commissioner through the NMLS.
C. As an alternative to a surety bond under § 6.2-1951 of the Code of Virginia, in whole or in part, a licensee or applicant for a license may be permitted to substitute the deposit of certain property with a bank, trust company, or savings institution authorized to conduct business in the Commonwealth of Virginia. Such deposited property, other than cash, shall be valued at the lower of face or market value for the purposes of this chapter.
D. The deposited property may consist only of cash, securities issued or guaranteed by the United States or any agency or instrumentality of the United States, or securities issued by the Commonwealth of Virginia or any political subdivision of the Commonwealth of Virginia.
E. The property deposit shall be made upon the commissioner's authorization and pursuant to a written agreement using a form prescribed by the commissioner. The agreement shall provide, among other things, that the commissioner shall have the authority to permit or require the substitution or liquidation of property held under the agreement, and that interest and dividends attributable to the property will be paid to the licensee making the deposit.
F. If a licensee ceases money transmission activity and is no longer licensed under Chapter 19.1, the commissioner shall have authority to permit reduction or elimination of the surety bond or property deposit to the extent that the former licensee's obligations arising from its licensed business are reduced or eliminated, and shall have authority to permit the substitution of other means of security for the security device as permitted by § 6.2-1951 of the Code of Virginia and this section.
Statutory Authority
§ 6.2-1913 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 12, Issue 22, eff. July 1, 1996; amended, Virginia Register Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-35. Nationwide Multistate Licensing System and Registry.
A. Every licensee shall maintain current information in its records with the NMLS. Except as otherwise required by Chapter 19.1 or this chapter, a licensee shall update its information as soon as is practicable, but in no event later than 10 business days from when a change takes effect.
B. A license under Chapter 19.1 shall expire on December 31 of each calendar year unless it is renewed by a licensee on or after November 1 of the same year. However, licenses that are granted between November 1 and December 31 shall not expire until the end of the following calendar year. A license shall be renewed upon the commissioner finding that the licensee has satisfied the requirements set forth in § 6.2-1934 B of the Code of Virginia.
C. Pursuant to § 6.2-1934 C of the Code of Virginia, the commission may grant an extension of the expiration date of all licenses under Chapter 19.1 in the event of a natural disaster or such other unanticipated events or circumstances beyond the control of licensees that would prevent the licensees from renewing their licenses by December 31.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 35, Issue 24, eff. July 15, 2019; amended, Virginia Register Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-40. Reporting and filing requirements.
A. Pursuant to §§ 6.2-1938 and 6.2-1940 of the Code of Virginia, every licensee shall file quarterly reports of condition (i.e., call reports) and authorized delegate reports through the NMLS as well as such other information pertaining to the licensee's financial condition as may be required by the NMLS.
B. Within one business day after a licensee has reason to know of the occurrence of any of the following events, the licensee shall file a written report with the commissioner describing the event:
1. The filing of a petition by or against the licensee under the United States Bankruptcy Code (11 USC § 101 et seq.) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for the licensee's dissolution or reorganization, or an action by a creditor against the licensee who is not a beneficiary of a statutory trust established in accordance with § 6.2-1952 C of the Code of Virginia.
2. Any local, state, or federal governmental authority institutes revocation, suspension, or other formal administrative, regulatory, or enforcement proceedings against the licensee.
3. Any local, state, or federal governmental authority (i) revokes or suspends the licensee's money order seller license, money transmitter license, or other license for a similar business; (ii) takes formal administrative, regulatory, or enforcement action against the licensee relating to its money order sales, money transmission, or similar business; or (iii) takes any other action against the licensee relating to its money order sales, money transmission, or similar business where the total amount of restitution or other payment from the licensee exceeds $20,000. A licensee shall not be required to provide the commissioner with information about such event to the extent that such disclosure is prohibited by the laws of another state.
4. Based on allegations by any local, state, or federal governmental authority that the licensee violated any law or regulation applicable to the conduct of its licensed money order sales, money transmission, or similar business, the licensee enters into or otherwise agrees to the entry of a settlement or consent order, decree, or agreement with or by such governmental authority.
5. The licensee surrenders its money order seller license, money transmitter license, or other license for a similar business in another state in lieu of threatened or pending license revocation; license suspension; or other administrative, regulatory, or enforcement action.
6. The licensee is denied a money order seller license, money transmitter license, or other license for a similar business in another state.
C. The reports required by this section shall contain such information as the commissioner may require. The commissioner may require such additional reports as the commissioner deems necessary.
D. Pursuant to § 6.2-1939 of the Code of Virginia, the commissioner may, for good cause shown, grant a licensee's request for an extension of up to 60 days to file its audited financial statements. Such request shall be made in writing, specify the reason for the request, and be submitted directly to the bureau.
E. Pursuant to § 6.2-1940 of the Code of Virginia, every licensee shall submit through the NMLS agent reporting functionality such information pertaining to its authorized delegates as the NMLS may require.
F. Any reports, notifications, or filings required by Chapter 19.1 or this chapter may be submitted to the commissioner through the NMLS, provided that the NMLS is capable of receiving such reports, notifications, or filings.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 12, Issue 22, eff. July 1, 1996; amended Virginia Register Volume 31, Issue 12, eff. February 15, 2015; Volume 35, Issue 24, eff. July 15, 2019; Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-50. Annual fees and expenses for the examination and supervision of money transmitters.
Pursuant to § 6.2-1924 B of the Code of Virginia, each licensee shall pay an annual fee to defray the costs of the examination and supervision of licensees by the bureau.
The annual fee shall be $0.000047 per dollar of (i) money orders sold and money transmitted by a licensee pursuant to Chapter 19 and (ii) a licensee's money transmission activity pursuant to Chapter 19.1. The assessment shall be based on the dollar volume of business conducted by a licensee, either directly or through its authorized delegates, during the calendar year preceding the year of the assessment as reported by each licensee in the quarterly reports of condition (i.e., call reports) filed through the NMLS. If a licensee fails to fully report its volume information for the prior calendar year by the assessment date, a provisional fee subject to adjustment when the information is reported shall be assessed.
The amount calculated pursuant to this section shall be rounded down to the nearest whole dollar.
Fees shall be assessed on or before August 1 for the current calendar year. The assessment shall be paid by licensees on or before September 1.
Fees prescribed and assessed pursuant to this section are apart from and do not include the following: (a) the annual license renewal fee of $750 authorized by § 6.2-1934 A of the Code of Virginia and (b) the reimbursement for costs authorized by §§ 6.2-1926 C and 6.2-1933 C of the Code of Virginia. When it becomes necessary to examine or investigate the affairs, business, premises, or records of a licensee or any of its authorized delegates at a location outside the Commonwealth of Virginia, the licensee shall be liable for and shall pay to the commission within 30 days of the presentation of an itemized statement the actual travel and reasonable living expenses incurred on account of its examination or investigation, or shall pay a reasonable per diem rate approved by the commission.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 26, Issue 25, eff. July 27, 2010; amended, Volume 28, Issue 20, eff. June 1, 2012; Volume 31, Issue 12, eff. February 15, 2015; Volume 35, Issue 24, eff. July 15, 2019; Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-60. Responding to requests from the Bureau of Financial Institutions; providing false, misleading, or deceptive information.
A. When the bureau requests a written response, records, documentation, or other information from a licensee or its authorized delegate in connection with the bureau's investigation, enforcement, or examination of compliance with applicable laws and regulations, the licensee or authorized delegate shall deliver a written response as well as any requested records, documentation, or information within the time period specified in the bureau's request. If no time period is specified, a written response as well as any requested records, documentation, or information shall be delivered by the licensee or its authorized delegate to the bureau not later than 30 days from the date of such request. In determining the specified time period for responding to the bureau and when considering a request for an extension of time to respond, the bureau shall take into consideration the volume and complexity of the requested written response, records, documentation, or information and such other factors as the bureau determines to be relevant under the circumstances. Requests made by the bureau pursuant to this subsection are deemed to be in furtherance of the commission's investigation and examination authority provided for in § 6.2-1926 of the Code of Virginia.
B. A licensee shall not provide any false, misleading, or deceptive information to the bureau.
C. If the bureau requests information from an applicant to complete a deficient application filed under § 6.2-1931 or 6.2-1936 of the Code of Virginia, and the information is not received within 60 days of the request, the application shall be deemed abandoned unless a request for an extension of time is received and approved by the bureau prior to the expiration of the 60-day period.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 31, Issue 12, eff. February 15, 2015; amended, Virginia Register Volume 35, Issue 24, eff. July 15, 2019; Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-70. Additional business requirements and restrictions; operating rules.
A. A licensee shall not permit an authorized delegate to use a subdelegate or otherwise designate or appoint another person to engage in money transmission business on behalf of the licensee.
B. A licensee shall comply with Chapter 19.1, this chapter, and all other state and federal laws and regulations applicable to the conduct of its business. For purposes of Chapter 19.1 and this chapter, the acts and omissions of a licensee's authorized delegates shall be deemed acts and omissions of such licensee.
C. In addition to the records specified in § 6.2-1943 A of the Code of Virginia, a licensee shall maintain in its principal place of business such other records as the commissioner may reasonably require in order to determine whether such licensee is complying with the provisions of Chapter 19.1, this chapter, and other laws and regulations applicable to the conduct of its business.
D. If a licensee, authorized delegate, or former licensee disposes of records containing a consumer's personal financial information or copies of a consumer's identification documents, such records and copies shall be shredded, incinerated, or otherwise disposed of in a secure manner. A licensee, authorized delegate, or former licensee may arrange for service from a business record destruction vendor.
E. A licensee or former licensee shall provide the following information to the bureau within 10 days after such person's license has expired or been surrendered or revoked or the licensed business is otherwise closed: (i) the names, addresses, telephone numbers, and email addresses of a designated contact person and the person who consumers may contact regarding outstanding money transmission obligations; (ii) the location of the licensee's or former licensee's money transmission records; and (iii) any additional information that the bureau may reasonably require. A licensee or former licensee shall maintain current information with the bureau until the licensee or former licensee has no outstanding money transmission obligations.
F. A person shall remain subject to the provisions of Chapter 19.1 and this chapter applicable to licensees in connection with all money orders sold and money or monetary value received for transmission pursuant to Chapter 19 or Chapter 19.1 notwithstanding the occurrence of any of the following events:
1. The person's license has expired or been surrendered or revoked; or
2. The person ceases money transmission activity.
G. A licensee shall not provide any information to a person located in the Commonwealth of Virginia that is false, misleading, or deceptive.
H. A licensee shall not engage in any activity that directly or indirectly results in an evasion of the provisions of Chapter 19.1 or this chapter.
I. A licensee shall continuously maintain the requirements and standards for licensure prescribed in § 6.2-1933 of the Code of Virginia.
J. Pursuant to § 6.2-1945 A of the Code of Virginia, a licensee shall enter into an agreement with each sender. The agreement shall be in writing and specify the estimated timeframe within which the funds will be available to the recipient, and a copy of the agreement shall be furnished or made available to the sender on or before the execution of the transaction. A licensee's terms of use, user agreement, or other equivalent document may be used to satisfy the requirements of this subsection.
K. The expiration, surrender, or revocation of a license under Chapter 19.1 shall not affect any pre-existing legal right or obligation of the licensee.
L. Pursuant to § 6.2-1947 B of the Code of Virginia, a licensee or a licensee's authorized delegate shall provide each sender with a receipt upon receiving money for transmission. This requirement shall be applicable solely to the extent that § 6.2-1947 of the Code of Virginia requires that a receipt be provided.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 31, Issue 12, eff. February 15, 2015; amended, Virginia Register Volume 35, Issue 24, eff. July 15, 2019; Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-80. Permissible investments.
A. Permissible investments maintained by a licensee pursuant to § 6.2-1952 of the Code of Virginia shall be unencumbered and held solely in the name of the licensee.
B. In addition to the investments specified in § 6.2-1953 of the Code of Virginia, the following investments shall be considered permissible under § 6.2-1952 of the Code of Virginia: debit card-funded or credit card-funded transmission receivables owed by any bank, savings institution, or credit union.
C. The receivables specified in § 6.2-1953 B 1 of the Code of Virginia shall be limited to funds that have been collected by a licensee's authorized delegates directly from residents of the United States for money transmission transactions.
D. For purposes of § 6.2-1953 A 4 a (1) of the Code of Virginia, the following shall be deemed United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies:
1. Office of the Comptroller of the Currency.
2. Federal Reserve Board.
3. Federal Deposit Insurance Corporation.
4. National Credit Union Administration.
5. State regulatory agencies that supervise banks, credit unions, or trust companies.
E. For purposes of § 6.2-1953 B 4 of the Code of Virginia, a licensee is required to have received a satisfactory or better rating in its most recent examination conducted (i) directly by the bureau or (ii) by an agency of another state if the examination report is accepted by the bureau pursuant to a multistate agreement.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 31, Issue 12, eff. February 15, 2015; amended, Virginia Register Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-85. Acquisitions of control.
A. A person or group of persons acting in concert that have obtained commission approval to acquire control of a licensee pursuant to § 6.2-1936 H of the Code of Virginia shall notify the commissioner within 15 days after the acquisition of control.
B. For purposes of § 6.2-1936 K 6 of the Code of Virginia, a public offering of securities of a licensee or a person in control of a licensee refers to a person or group of persons acting in concert who acquire such securities in a public offering.
C. A person shall be deemed to satisfy § 6.2-1936 M 1 of the Code of Virginia if the person has (i) never had a professional license revoked or suspended or (ii) not controlled a licensee that has had a professional license revoked or suspended while the person was in control of the licensee in the previous five years.
D. The notice required by § 6.2-1936 M 5 of the Code of Virginia shall be provided by a licensee or person in control of a licensee, and the notice shall be furnished at least 30 days in advance of the acquisition of control. The commissioner shall have the power and authority to make all findings and disapprove the notice if the commissioner has reason to believe that the criteria in § 6.2-1936 M of the Code of Virginia have not been met.
Statutory Authority
§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-90. Enforcement.
A. Failure to comply with any provision of Chapter 19.1 or this chapter may result in civil penalties, license suspension or revocation, the entry of a cease and desist order, or other appropriate enforcement action.
B. Pursuant to § 6.2-1955 of the Code of Virginia, a person required to be licensed under Chapter 19.1 shall be subject to a civil penalty of up to $2,500 for every violation of Chapter 19.1, this chapter, or other law or regulation applicable to the conduct of the person's business. Furthermore, if a person violates any provision of Chapter 19.1, this chapter, or other law or regulation applicable to the conduct of the person's business in connection with multiple money transmission transactions, the person shall be subject to a separate civil penalty for each money transmission transaction. For example, if a person conducts five money transmission transactions and the person violates two provisions of this chapter in connection with each of the five money transmission transactions, there would be a total of 10 violations and the person would be subject to a maximum civil penalty of $25,000.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 31, Issue 12, eff. February 15, 2015; amended, Virginia Register Volume 43, Issue 4, eff. October 1, 2026.
10VAC5-120-100. Commission authority.
A. Except as otherwise provided in § 6.2-1927 B of the Code of Virginia, the commission may, at its discretion, waive or grant exceptions to any provision of this chapter for good cause shown.
B. In addition to the powers and duties delegated elsewhere in this chapter and in 10VAC5-10-10, the commission delegates to the commissioner the authority to exercise its powers and to act for it under the following provisions of Chapter 19.1:
1. Section 6.2-1924 A of the Code of Virginia.
2. Section 6.2-1927 A 2 of the Code of Virginia.
3. Section 6.2-1936 M 2, N, and O of the Code of Virginia.
4. Section 6.2-1937 B and E of the Code of Virginia.
5. Section 6.2-1938 A of the Code of Virginia.
6. Section 6.2-1939 C of the Code of Virginia.
7. Section 6.2-1951 E of the Code of Virginia.
In exercising the powers and performing the duties hereby delegated to the commissioner, the commissioner shall have the power and authority to make all findings and determinations permitted or required by law.
Statutory Authority
§§ 6.2-1913 and 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 31, Issue 12, eff. February 15, 2015; amended, Virginia Register Volume 43, Issue 4, eff. October 1, 2026.