Virginia Law

A. As used in this section, "remit" means (i) to make direct payments of money to a licensee or its representative authorized to receive money or (ii) to deposit money in a bank account specified by the licensee.

B. Before a licensee conducts business through an authorized delegate or allows a person to act as the licensee's authorized delegate, the licensee shall:

1. Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee's authorized delegates comply with applicable state and federal law;

2. Enter into a written contract that complies with subsection D; and

3. Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.

C. The licensee's authorized delegates shall operate in full compliance with applicable state and federal law, and the licensee shall be responsible for implementing and maintaining a reasonable risk-based supervision program to monitor its authorized delegates.

D. The written contract required by subsection B shall be signed by the licensee and the authorized delegate and, at a minimum, shall:

1. Designate the person signing the contract as the licensee's authorized delegate with the authority to conduct money transmission on behalf of the licensee;

2. Set forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;

3. Require the authorized delegate to fully comply with all applicable state and federal laws and regulations;

4. Require the authorized delegate to remit and handle money in accordance with the terms of the contract between the licensee and the authorized delegate;

5. Impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee;

6. Require the authorized delegate to prepare and maintain records as required by this chapter or regulations implementing this chapter, or as reasonably required by the Commission;

7. Acknowledge that the authorized delegate consents to examination or investigation by the Commission;

8. State that the licensee is subject to regulation by the Commission and that, as part of that regulation, the Commission may require the licensee to revoke an authorized delegate designation; and

9. Acknowledge receipt of the written policies and procedures required under subdivision B 1.

E. If the licensee's license is suspended, revoked, surrendered, or expired, the licensee shall, within five business days, provide documentation to the Commission that the licensee has notified all authorized delegates of the licensee whose names are in a record filed with the Commission of the suspension, revocation, surrender, or expiration of its license. Upon suspension, revocation, surrender, or expiration of the license, all authorized delegates shall immediately cease to provide money transmission on behalf of the licensee.

F. An authorized delegate of a licensee shall hold in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.

G. An authorized delegate shall not use a subdelegate or otherwise designate or appoint another person to conduct money transmission on behalf of a licensee.

H. No person shall engage in the business of money transmission on behalf of a person not licensed under this chapter or exempt pursuant to § 6.2-1923. A person that engages in such activity provides money transmission to the same extent as a person required to be licensed under this chapter and shall be jointly and severally liable with the unlicensed and nonexempt person.

2025, c. 214.