This Chapter sets forth the supervisory and regulatory requirements, procedures, and standards for licensing of money transmitters under the Oklahoma Financial Transaction Reporting Act (Title 6 O.S. §§ 1511 - 1515).  That Act generally requires the registration and licensing of money service businesses and gives the State Banking Board authority to clarify and define by rule the application of the Act.  These rules are intended to apply the licensing requirements to money transmitter companies but not their authorized delegates, except as otherwise provided.  Furthermore, these rules create standards for approval of such licenses, such as requiring a security bond for the protection of the public.  Applicants for a license that have filed an application within 90 days of the effective date of the rules under this Chapter will be deemed to be in compliance with this Chapter until such time as the Commissioner grants or denies the license application.

85:15-1-2.  Definitions

The following words and terms, when used in this Chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)  "Act" means the Oklahoma Financial Transaction Reporting Act, Title 6 O.S. § 1511 et seq., and all rules promulgated under that Act.

(2)  "Applicant" means a person that files an application for a license under the Act.

(3) "Authorized delegate" means a person a licensee designates to provide money services on behalf of the licensee.

(4) "Bank" means an institution identified as a "bank" in 31 C.F.R. section 103.11.

(5) "Board" means the Oklahoma State Banking Board.

(6) "Commissioner" means the Oklahoma State Banking Commissioner.

(7) "Control" means:

(A) ownership of, or the power to vote, directly or indirectly, at least 25 percent of a class of voting securities or voting interests of a licensee or person in control of a licensee;

(B) power to elect a majority of executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or person in control of a licensee; or

(C) the power to exercise directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.

(8) "Department" means the Oklahoma State Banking Department.

(9) "Executive officer" means a president, chairperson of the executive committee, chief financial officer, responsible individual, or other individual who performs similar functions.

(10) "Licensee" means a person licensed under the Act.  A licensee under this chapter is a "supplier" or "money transmitter" under section 2 of the Oklahoma Financial Transaction Reporting Act.

(11) "Material litigation" means litigation that according to generally accepted accounting principles is significant to an applicant's or a licensee's financial health and would be required to be disclosed in the applicant's or licensee's annual audited financial statements, report to shareholders, or similar records.

(12) "Money" means a medium of exchange that is authorized or adopted by the United States or a foreign government.  The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.

(13) "Money transmission" means receiving money for transmission of the money or the value of the money, by any means through a financial agency or institution, a Federal Reserve Bank or other facility of one or more Federal Reserve Banks, the Board of Governors of the Federal Reserve System or both, or any other electronic network by which money or its value may be transmitted.  Money transmission does not include the business of selling or issuing checks that is required to be licensed under the Oklahoma Sale of Checks Act, Title 6 O.S. § 2101 et seq.

(14) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency or instrumentality; public corporation; or any other legal or commercial entity.

(15) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(16) "Responsible individual" means an individual who is employed by a licensee and has principal managerial authority over the provision of money transmission services by the licensee in this State.

(17) "State" means a State of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

(18) "Unsafe or unsound practice" means a practice or conduct by a person licensed to engage in money transmission or an authorized delegate of such a person which creates the likelihood of material loss, insolvency, or dissipation of the licensee's assets, or otherwise materially prejudices the interests of its customers.

85:15-1-3.  Exclusions

The Act does not apply to:

(1) the United States or a department, agency, or instrumentality thereof;

(2) money transmission by the United States Postal Service or by a contractor on behalf of the United States Postal Service;

(3) a state, county, city, or any other governmental agency or governmental subdivision of a State;

(4) a Bank;

(5) electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or a State or governmental subdivision, agency, or instrumentality thereof;

(6) a board of trade designated as a contract market under the federal Commodity Exchange Act [7 U.S.C. Section 1-25 (1994)] or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board;

(7) a registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant;

(8) a person that provides clearance or settlement services pursuant to a registration as a clearing agency or an exemption from such registration granted under the federal securities laws to the extent of its operation as such a provider;

(9)_an operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons excluded by this section, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers; or

(10) a person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer.