STATE STATUTES - MONEY TRANSMISSION

New Mexico

Table of Contents

58-32-101. Short title. (Effective January 1, 2017.)
This act [58-32-101 through 58-32-1004 NMSA 1978] may be cited as the “Uniform Money 

Services Act”.
History: Laws 2016, ch. 88, § 101. 

58-32-102. Definitions. (Effective January 1, 2017.) As used in the Uniform Money Services Act: 

  1. “applicant” means a person that files an application for a license pursuant to the Uniform Money Services Act; 
  2. “authorized delegate” means a person that a licensee designates to provide money services on behalf of the licensee; 
  3. “bank” means an institution organized under federal or state law that: 

(1) accepts demand deposits or deposits that the depositor may use for payment to third parties and engages in the business of making commercial loans; or 

(2) engages in credit card operations and maintains only one office that accepts deposits, does not accept demand deposits or deposits that the depositor may use for payments to third parties, does not accept a savings or time deposit less than one hundred thousand dollars ($100,000) and does not engage in the business of making commercial loans; 

  1. “check cashing” means receiving compensation for taking payment instruments or stored value, other than traveler’s checks, in exchange for money, payment instruments or stored value delivered to the person delivering the payment instrument or stored value at the time and place of delivery without an agreement specifying when the person taking the payment instrument will present it for collection; 
  2. “control” means: 

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

(2) the power to elect, appoint, choose or otherwise designate, directly or indirectly, 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 

(3) 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; 

  1. “currency exchange” means receipt of revenues from the exchange of money of one government for money of another government; 
  2. “director” means the director of the financial institutions division of the regulation and licensing department; 
  3. “electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities; 
  4. “executive officer” means a president, chair of the executive committee, chief financial officer, responsible individual or other individual who performs similar functions; 
  5. “internet-based money services business” means a business that provides money transmission, check cashing or currency exchange services to residents of New Mexico through the internet; 
  1. “licensee” means a person licensed pursuant to the Uniform Money Services Act; 
  2. “limited station” means private premises where a check casher is authorized to engage in 

check cashing solely for the employees of the particular employer or group of employers specified in the check casher’s license application; 

“mobile location” means a vehicle or a movable facility where check cashing occurs; “monetary value” means a medium of exchange, whether or not redeemable in money; “money” means a medium of exchange that is authorized or adopted by the United States or 

O.
a foreign government. “Money” includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments; 

  1. “money services” means money transmission, check cashing or currency exchange; 
  2. “money transmission” means selling or issuing payment instruments, stored value or receiving money or monetary value for transmission. “Money transmission” does not include the provision solely of delivery, online or telecommunications services or network access; 
  3. “nationwide mortgage licensing system and registry” means a licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators pursuant to the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 to manage mortgage licenses and other financial services licenses, or a successor registry; 
  4. “outstanding”, with respect to a payment instrument, means issued or sold by or for the licensee and reported as sold but not yet paid by or for the licensee; 
  5. “payment instrument” means a check, draft, money order, traveler’s check or other instrument for the transmission or payment of money or monetary value, whether or not negotiable. “Payment instrument” does not include a credit card voucher, letter of credit or instrument that is redeemable by the issuer in goods or services; 
  6. “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; 
  7. “record”, when used as a noun, 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; 
  8. “responsible individual” means an individual who is employed by a licensee and has principal managerial authority over the provision of money services by the licensee in New Mexico; 
  1. “sign” means, with present intent to authenticate or adopt a record: 
    1. (1)  to execute or adopt a tangible symbol; or 
    2. (2)  to attach to or logically associate with the record an electronic sound, symbol or 

process; 

  1. “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; 

  1. “stored value” means monetary value that is evidenced by an electronic record; 
  2. “unique identifier” means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry; and 
  3. “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 that creates the likelihood of material loss, insolvency or dissipation of the licensee’s assets, or otherwise materially prejudices the interests of its customers. 

History: Laws 2016, ch. 88, § 102. 

58-32-103. Exclusions. (Effective January 1, 2017.) The Uniform Money Services 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; 

  1. a state, county, city or any other governmental agency or governmental subdivision of a state; 
  2. a bank, bank holding company, office of an international banking corporation, branch of a foreign bank, corporation organized pursuant to the federal Bank Service Company Act or corporation organized pursuant to the federal Edge Act; 
  3. 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; 
  4. a board of trade designated as a contract market pursuant to the federal Commodity Exchange Act 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; 
  5. a registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant; 
  6. 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; 
  7. 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 clearinghouse transfers or similar funds transfers; 
  8. 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; 
  9. an attorney or title company that, in connection with a real property transaction, receives and disburses domestic currency or issues an escrow or trust fund check only on behalf of a party to the transaction; 
  10. a credit union regulated and insured by the national credit union association; or 
  11. any other person, transaction or class of persons or transactions exempted by the director’s rule or any other person or transaction exempted by the director’s order pursuant to a finding that the licensing of the person or transaction is not necessary to achieve the purposes of the Uniform Money Services Act. 

History: Laws 2016, ch. 88, § 103. 

ARTICLE 2: MONEY TRANSMISSION LICENSES 

58-32-201. License required. (Effective January 1, 2017.)
A. A person shall not engage in the business of money transmission or advertise, solicit or hold 

itself out as providing money transmission unless the person: 

(1) is licensed pursuant to Article 2 [58-32-201 through 58-32-206 NMSA 1978] of the Uniform Money Services Act; or 

(2) is an authorized delegate of a person licensed pursuant to Article 2 of the Uniform Money Services Act. 

  1. A license pursuant to Article 2 of the Uniform Money Services Act is not transferable or assignable. 

History: Laws 2016, ch. 88, § 201. 

58-32-202. Application for license. (Effective January 1, 2017.) 

  1. A person applying for a license pursuant to Article 2 [58-32-201 through 58-32-206 NMSA 1978] of the Uniform Money Services Act shall apply in a record signed under penalty of perjury that shall be in a form and in a medium required by the director. Each form shall contain content as set forth by rule, instruction or procedure of the director. The form shall include the following information: 

(1) the legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business; 

(2) a list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the ten-year period next preceding the submission of the application; 

(3) a description of any money services previously provided by the applicant and the money services that the applicant seeks to provide in New Mexico; 

(4) a list of the applicant’s proposed authorized delegates and the locations in New Mexico where the applicant and its authorized delegates propose to engage in money transmission or provide other money services; 

(5) a list of other states in which the applicant is licensed to engage in money transmission or provide other money services and any license revocations, suspensions or other disciplinary action taken against the applicant in another state; 

(6) information concerning any bankruptcy or receivership proceedings affecting the applicant; 

(7) a sample form of contract for authorized delegates, if applicable, and a sample form of payment instrument or instrument upon which stored value is recorded, if applicable; 

(8) the name and address of any bank through which the applicant’s payment instruments and stored value will be paid; 

(9) a description of the source of money and credit to be used by the applicant to provide money services; and 

(10) any other information the director reasonably requires with respect to the applicant. 

  1. In order to fulfill the purposes of the Uniform Money Services Act, the director may establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities designated by the nationwide mortgage licensing system and registry to collect and maintain records and process transaction fees or other fees related to applicants or other individuals subject to that act. 
  2. In connection with an application for licensing pursuant to Article 2 of the Uniform Money Services Act, the applicant shall, at a minimum, furnish to the nationwide mortgage licensing system and registry the following information in a form and medium prescribed by the nationwide mortgage licensing system and registry: 
  1. (1)  the applicant’s history and experience; and 
  2. (2)  an authorization for the nationwide mortgage licensing system and registry and the 

director to obtain: 

(a) an independent credit report; and
(b) information related to any administrative, civil or criminal findings by any governmental jurisdiction. 

  1. If an applicant is a corporation, limited liability company, partnership or other entity, the applicant shall also provide: 

(1) the date of the applicant’s incorporation or formation and the state or country of incorporation or formation; 

(2) if applicable, a certificate of good standing from the state or country in which the applicant is incorporated or formed; 

(3) a brief description of the structure or organization of the applicant, including any parent or subsidiary of the applicant, and whether any parent or subsidiary is publicly traded; 

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(4) the legal name, any fictitious or trade name, all business and residential addresses and the employment in the ten-year period next preceding the submission of the application of each executive officer, manager, director or person that has control of the applicant; 

(5) a list of any criminal convictions and material litigation in which any executive officer, manager, director or person in control of the applicant has been involved in the ten-year period next preceding the submission of the application; 

(6) a copy of the applicant’s audited financial statements for the most recent fiscal year and, if available, for the two-year period next preceding the submission of the application; 

(7) a copy of the applicant’s unconsolidated financial statements for the current fiscal year, whether audited or not, and, if available, for the two-year period next preceding the submission of the application; 

(8) if the applicant is publicly traded, a copy of the most recent report filed with the United States securities and exchange commission pursuant to Section 13 of the federal Securities Exchange Act of 1934; 

(9) 

if the applicant is a wholly owned subsidiary of: 

(a) a corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation’s most recent report filed pursuant to Section 13 of the federal Securities Exchange Act of 1934; or 

(b) a corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation’s domicile outside the United States; 

(10)
applicant’s registered agent in New Mexico; and 

if the applicant has a registered agent in New Mexico, the name and address of the 

(11) any other information the director reasonably requires with respect to the applicant. 

  1. A nonrefundable application fee of two thousand dollars ($2,000) and a nonrefundable license fee of two thousand dollars ($2,000) shall accompany an application for a license pursuant to Article 2 of the Uniform Money Services Act. The application shall also be accompanied by the surety bond or other security required by Section 203 [58-32-203 NMSA 1978] of the Uniform Money Services Act. 
  2. The director may waive one or more requirements of Subsection C or D of this section or permit an applicant to submit other information in lieu of the required information. 
  3. As used in this section, “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. 

History: Laws 2016, ch. 88, § 202. 

58-32-203. Security. (Effective January 1, 2017.) 

  1. Except as otherwise provided in Subsection B of this section, a surety bond, letter of credit, or other similar security acceptable to the director shall accompany an application for a license pursuant to Article 2 [58-32-201 through 58-32-206 NMSA 1978] of the Uniform Money Services Act. Except as otherwise provided in Subsections D and F of this section, the required security shall be in the amount of three hundred thousand dollars ($300,000) or an amount equal to one percent of the licensee’s total yearly dollar volume of money transmission business in this state or the applicant’s projected total volume of business in this state for the first year of licensure, whichever is greater, up to a maximum of two million dollars ($2,000,000). 
  2. The security shall be in form and substance and from an issuer satisfactory to the director and payable to New Mexico for the benefit of any claimant against the licensee to secure the faithful performance of the obligations of the licensee with respect to money transmission. 
  3. The aggregate liability on a surety bond shall not exceed the principal sum of the bond. A claimant against a licensee may maintain an action on the bond or the director may maintain an action on behalf of the claimant. 
  4. A surety bond shall cover claims for so long as the director specifies, but for at least five years after the licensee ceases to provide money services in New Mexico. However, the director may permit the amount of security to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee’s payment instruments or stored-value obligations outstanding in New Mexico is reduced. The director may permit a licensee to substitute another form of security acceptable to the director for the security effective at the time the licensee ceases to provide money services in New Mexico. 
  5. In lieu of the security prescribed in this section, an applicant for a license or a licensee may provide security in form and substance and from an issuer prescribed by the director. 
  6. The director may increase the amount of security required to a maximum of five million dollars ($5,000,000) if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses or other relevant criteria. 

History: Laws 2016, ch. 88, § 203. 

58-32-204. Issuance of license. (Effective January 1, 2017.) 

  1. When an application is filed pursuant to Article 2 [58-32-201 through 58-32-206 NMSA 1978] of the Uniform Money Services Act, the director shall investigate the applicant’s financial condition and responsibility, financial and business experience, character and general
    fitness. The director may conduct an onsite investigation of the applicant, in New Mexico or in any other state or country, the reasonable cost of which the applicant shall pay. The director shall issue a license to an applicant pursuant to Article 2 of the Uniform Money Services Act if the director finds that all of the following conditions have been fulfilled: 

(1) the applicant has complied with Sections 202, 203 and 206 [58-32-202, 58-32- 203, 58-32-206 NMSA 1978] of the Uniform Money Services Act; and 

(2) the financial condition and responsibility, financial and business experience, competence, character and general fitness of the applicant and the competence, experience, character and general fitness of the executive officers, managers, directors and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission. 

  1. When an application for an original license pursuant to Article 2 of the Uniform Money Services Act is complete, the director shall promptly notify the applicant in a record of the date on which the application was determined to be complete and: 

(1) the director shall approve or deny the application within one hundred twenty days after that date; or 

(2) if the application is not approved or denied within one hundred twenty days after that date: 

  1. (a)  the application is deemed approved; and 
  2. (b)  the license takes effect as of the first business day after expiration of the one- 

hundred-twenty-day period. 

  1. The director may for good cause extend the application period. 
  2. An applicant whose application is denied by the director pursuant to Article 2 of the Uniform Money Services Act may appeal the denial, within thirty days after receipt of the notice of the denial, and request a hearing. 

History: Laws 2016, ch. 88, § 204. 

58-32-205. Renewal of license. (Effective January 1, 2017.) 

  1. A license issued pursuant to Article 2 [58-32-201 through 58-32-206 NMSA 1978] of the Uniform Money Services Act shall expire on December 31 each year. A licensee pursuant to Article 2 of the Uniform Money Services Act shall pay an annual renewal fee of one thousand dollars ($1,000) and twenty-five dollars ($25.00) for each authorized delegate before November 1 of each year or, if November 1 is not a business day, on the next business day. 
  2. A licensee pursuant to Article 2 of the Uniform Money Services Act shall submit a renewal report with the renewal fee, in a record signed under penalty of perjury that shall be in a form and in a medium prescribed by the director. The renewal report shall state or contain: 

(1) a copy of the licensee’s most recent audited annual financial statement or, if the licensee is a wholly owned subsidiary of another corporation, the most recent audited consolidated annual financial statement of the parent corporation or the licensee’s most recent audited consolidated annual financial statement; 

(2) the number and monetary amount of payment instruments and stored value sold by the licensee in New Mexico that have not been included in a renewal report and the monetary amount of payment instruments and stored value currently outstanding; 

(3) a description of each material change in information submitted by the licensee in its original license application that has not been reported to the director on any required report; 

(4) a list of the licensee’s permissible investments and a certification that the licensee continues to maintain permissible investments according to the requirements set forth in Sections 701 and 702 [58-32-701, 58-32-702 NMSA 1978] of the Uniform Money Services Act; 

(5) proof that the licensee continues to maintain adequate security as required by Section 203 [58-32-203 NMSA 1978] of the Uniform Money Services Act; and 

(6) a list of the locations in New Mexico where the licensee or an authorized delegate of the licensee engages in money transmission or provides other money services. 

  1. If a licensee does not file a renewal report or pay its renewal fee by the renewal date or any extension of time granted by the director, the director shall send the licensee a notice of suspension. Unless the licensee files the report and pays the renewal fee before expiration of ten days after the notice is sent, the licensee’s license is suspended ten days after the director sends the notice of suspension. The suspension shall be lifted if, within twenty days after its license is suspended, the licensee: 

(2) pays one hundred dollars ($100) for each day after suspension that the director did not receive the renewal report and the renewal fee. 

  1. The director for good cause may grant an extension of the renewal date. History: Laws 2016, ch. 88, § 205. 

58-32-206. Net worth. (Effective January 1, 2017.) 

A licensee pursuant to Article 2 [58-32-201 through 58-32-206 NMSA 1978] of the Uniform Money Services Act shall maintain a net worth of at least the following amounts determined in accordance with generally accepted accounting principles: 

  1. for one to four locations of the licensee and authorized delegates in New Mexico, one hundred thousand dollars ($100,000); and 
  2. for five or more locations of the licensee and authorized delegates in New Mexico or for an internet-based money services business, five hundred thousand dollars ($500,000). 

History: Laws 2016, ch. 88, § 206.