Tenn. Code Ann. § 45-7-101
This chapter shall be known and may be cited as the “Tennessee Money Transmitter Act of 1994.”
Tenn. Code Ann. § 45-7-102
(a) No person except those exempt pursuant to § 45-7-104, shall engage in the business of money transmission without a license or other compliance as provided in this chapter.
(b) A licensee may conduct its business in Tennessee at one (1) or more locations, directly or indirectly owned, or through one (1) or more authorized agents, or both, pursuant to the single license granted to the licensee.
Tenn. Code Ann. § 45-7-103
As used in this chapter, unless the context otherwise requires:
(1) “Applicant” means a person filing an application for a license under this chapter;
(2) “Authorized agent” means an entity designated by the licensee under this chapter to sell or issue payment instruments or engage in the business of transmitting money on behalf of a licensee;
(3) “Commissioner” means the commissioner of financial institutions;
(4) “Control” means ownership of, or the power to vote, twenty-five percent (25%) or more of the outstanding voting securities of a licensee or controlling person. For purposes of determining the percentage of a licensee controlled by any person, there shall be aggregated with the person’s interest the interest of any other person controlled by the person or by any spouse, parent, or child of the person;
(5) “Controlling person” means any person in control of a licensee;
(6) “Executive officer” means the licensee’s president, chair of the executive committee, executive vice president, treasurer, chief financial officer or any other person who performs similar functions;
(7) “Key shareholder” means any person (or group of persons acting in concert) who is the owner of ten percent (10%) or more of any class of any applicant’s stock;
(8) “Licensee” means a person licensed under this chapter;
(9) “Material litigation” means any litigation that, according to generally accepted accounting principles, is deemed significant to a person’s financial health and would be required to be referenced in annual audited financial statements, report to shareholders or similar documents;
(10) “Money transmission” means the sale or issuance of payment instruments or engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means, including, but not limited to, payment instrument, wire, facsimile or electronic transfer;
(11) “Outstanding payment instrument” means any payment instrument issued by the licensee that has been sold in the United States directly by the licensee or any payment instrument issued by the licensee that has been sold and reported to the licensee as having been sold by an authorized agent of the licensee in the United States, and that has not yet been paid by or for the licensee;
(12) “Payment instrument” means any check, draft, money order, travelers check or other instrument or written order for the transmission or payment of money, sold or issued to one (1) or more persons, whether or not the instrument is negotiable. “Payment instrument” does not include any credit card voucher, any letter of credit or any instrument that is redeemable by the issuer in goods or services;
(13) “Permissible investments” means:
(A) Cash;
(B) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;
(C) Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers’ acceptances, that are eligible for purchase by member banks of the federal reserve system;
(D) Any investment bearing a rating of one (1) of the three (3) highest grades as defined by a nationally recognized organization that rates the securities;
(E) Investment securities that are obligations of the United States, its agencies or instrumentalities, or obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state, municipality or any political subdivision thereof;
(F) Receivables that are due any licensee from its authorized agents that are not past due or doubtful of collection;
(G) Shares in any mutual fund in which the assets of the mutual fund would constitute permissible investments, interest-bearing bills, notes or bonds, debentures or stock traded on any national over-the-counter market;
(H) Any demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange; or
(I) Any other investments approved by the commissioner;
(14) “Person” means any individual, partnership, association, joint-stock association, trust or corporation; and
(15) “Remit” means either to make direct payment of the funds to the licensee or its representatives authorized to receive those funds, or to deposit the funds in a bank, credit union or savings and loan association or other similar financial institution in an account in the name of the licensee.
Tenn. Code Ann. § 45-7-104
This chapter does not apply to:
(1) The United States or any department or agency of the United States;
(2) The state of Tennessee or any political subdivision of the state;
(3) Banks, trust companies, credit unions, building and loan associations, savings and loan associations, savings banks or mutual banks organized under the laws of any state or the United States; and
(4) Transactions governed by title 56, or the rules and regulations promulgated solely under title 56.
Tenn. Code Ann. § 45-7-105
(a) Each applicant for a license must demonstrate, and each licensee must maintain a net worth of not less than one hundred thousand dollars ($100,000) computed according to generally accepted accounting principles. Persons transmitting or proposing to transmit money shall have an additional net worth of twenty-five thousand dollars ($25,000) per additional location or agent located in Tennessee, as applicable, to a maximum of five hundred thousand dollars ($500,000).
(b) Every corporate applicant, at the time of filing of an application for a license under this chapter and at all times after a license is issued, shall be in good standing in the state of its incorporation. All noncorporate applicants shall, at the time of the filing of an application for a license under this chapter and at all times after a license is issued, be qualified to do business in the state.
(c) Subject to the commissioner’s discretion, no person shall be licensed under this chapter to do business in the state if the person has been adjudged guilty of any felony within the last ten (10) years or if an executive officer, key shareholder or director of the person has been so adjudged.
(d) The applicant must demonstrate experience, character, and general fitness to command the confidence of the public and warrant the belief that the business to be operated will be operated lawfully and fairly.
Tenn. Code Ann. § 45-7-106
Each licensee under this chapter must at all times possess permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate face amount of all outstanding payment instruments issued or sold by the licensee in the United States. This requirement may be waived by the commissioner if the dollar volume of a licensee’s outstanding payment instruments does not exceed the bond or other security devices posted by the licensee pursuant to § 45-7-108.
Tenn. Code Ann. § 45-7-107
(a) Each application for a license under this chapter shall be made in writing, under oath, and in a form prescribed by the commissioner. Each application shall contain:
(1) For all applicants:
(A) The exact name of the applicant, the applicant’s principal address, any fictitious or trade name used by the applicant in the conduct of its business, and the location of the applicant’s business records;
(B) The history of the applicant’s material litigation and criminal convictions for the ten-year period prior to the date of the application;
(C) A description of the activities conducted by the applicant and a history of operations;
(D) A description of the business activities in which the applicant seeks to be engaged in the state;
(E) A list identifying the applicant’s authorized agents in the state, if any, at the time of the filing of the license application;
(F) A sample authorized agent contract, if applicable;
(G) A sample form of payment instrument, if applicable;
(H) The location or locations at which the applicant and its authorized agents, if any, propose to conduct the licensed activities in the state;
(I) The name and address of the clearing bank or banks on which the applicant’s payment instruments will be drawn or through which the payment instruments will be payable; and
(J) Other information that the commissioner may deem appropriate;
(2) If the applicant is a corporation, the applicant must also provide:
(A) The date of the applicant’s incorporation and state of incorporation;
(B) A certificate of good standing from the state in which the applicant was incorporated;
(C) A description of the corporate structure of the applicant, including the identity of any parent or subsidiary of the applicant, and the disclosure of whether any parent or subsidiary is publicly traded on any stock exchange;
(D) The name, business and residential address and employment history for the past ten (10) years of the applicant’s executive officers and the officer or officers or managers who will be in charge of the applicant’s activities to be licensed hereunder;
(E) If the applicant is not a publicly traded corporation or a direct or indirect subsidiary of such a corporation, the name, business and residential addresses, and employment history of each of the applicant’s directors for the ten-year period preceding the date of the application;
(F) The name, business and residential address, and employment history of any current key shareholder of the applicant for the period ten (10) years prior to the date of the application;
(G) The history of material litigation and criminal convictions of every current director, executive officer, or key shareholder of the applicant for the ten-year period prior to the date of the application;
(H) Copies of the applicant’s unconsolidated audited financial statements, including balance sheet, statement of income or loss, statement of changes in shareholder equity and statement of changes in financial position, for the current year and, if available, for the immediately preceding three-year period. However, if the applicant is a wholly owned subsidiary of a corporation publicly traded in the United States, the applicant shall also provide the most recent audited financial statement of the parent of the applicant or the parent’s most recent 10K report filed with the United States securities and exchange commission. The requirements of this subsection (a) may be satisfied by the applicant providing a copy of the consolidated audited financial statement of the applicant’s parent corporation that includes the balance sheet, statement of income or loss, statement of changes in shareholder equity and statement of changes in financial position of the applicant for the current year and, if available, for the immediately preceding three-year period. If the applicant is a wholly owned subsidiary of a corporation publicly traded outside the United States, similar documentation filed with the parent corporation’s non-United States regulator may be submitted to satisfy this provision; and
(I) Copies of all filings, if any, made by the applicant with the United States securities and exchange commission, or with a similar regulator in a country other than the United States, within the year preceding the date of filing of the application; and
(3) If the applicant is not a corporation, the applicant must also provide:
(A) The name, business and residential address, personal financial statement and employment history, for the past ten (10) years, of each principal and any other person or persons who will be in charge of the applicant’s activities to be licensed hereunder;
(B) The place and date of the applicant’s qualification to do business in this state;
(C) The history of material litigation and criminal convictions for the ten-year period prior to the date of the application for each individual having any ownership interest in the applicant and each individual who exercises supervisory responsibility with respect to the applicant’s activities; and
(D) A copy of the applicant’s audited financial statement, including balance sheet, statement of income or loss, and statement of changes in financial position, for the current year and, if available, for the immediately preceding two-year period.
(b) Every person engaged in activities within this state encompassed by this chapter on May 1, 1995, at the time of the chapter’s adoption shall file an application in accordance with this chapter within three (3) months after May 1, 1995. No person shall be deemed to be in violation of this chapter for operating without a license if the person files an application within the three-month period, unless and until the application is denied. Persons licensed to issue money orders on May 1, 1995, who apply for a license under this chapter, are not required to pay the application fee required by § 45-7-109.
(c) If an applicant for licensure under this part was engaged in the business of selling or issuing money orders on April 30, 1995, at not more than four (4) locations, and if the applicant possessed a duly issued license to engage in the business as was required at that time by [former] § 45-7-102, and if the applicant currently engages in the business of money transmission at not more than four (4) locations, then the applicant shall not be required to submit audited financial statements pursuant to this section.
(d)
(1) The commissioner may require an applicant for licensure to consent to a criminal history records check and to provide a fingerprint sample in a form acceptable to the commissioner. The commissioner may require consent to a criminal history records check and a fingerprint sample from any individual who is an executive officer, key shareholder, or director of the applicant, as well as from any other individual associated with the applicant, as is reasonably necessary to meet the purposes of this part. An application for licensure is incomplete until the commissioner receives consent to a criminal history records check and a fingerprint sample required under this subsection (d). The commissioner may deny licensure to an applicant if:
(A) The applicant refuses to consent to a criminal history records check or to provide a fingerprint sample; or
(B) An executive officer, key shareholder, or director of the applicant, or any other individual associated with the applicant, refuses to consent to a criminal history check or to provide a fingerprint sample.
(2) Any criminal history records check conducted pursuant to this subsection (d) must be conducted by the Tennessee bureau of investigation, the federal bureau of investigation, or both, and the results of the criminal history records check must be forwarded to the commissioner. An applicant shall pay all costs incurred in conducting a criminal history records check in addition to any other fees required by this part.
Tenn. Code Ann. § 45-7-108
(a) Each application must be accompanied by a surety bond, irrevocable letter of credit or other similar security device, referred to as “security device” in this section, acceptable to the commissioner in the amount of fifty thousand dollars ($50,000). If the applicant proposes to engage in business under this chapter at more than one (1) location, through authorized agents or otherwise, then the amount of the security device will be increased by ten thousand dollars ($10,000) per additional location, up to a maximum of eight hundred thousand dollars ($800,000). The security device shall be in a form satisfactory to the commissioner and shall run to the state of Tennessee for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with the sale and issuance of payment instruments and/or transmission of money. In the case of a bond, the aggregate liability of the surety in no event shall exceed the principal sum of the bond. Surety bonds shall be obtained for a term of not less than one (1) year and evidence of the renewal of the surety bond shall be provided to the commissioner not less than thirty (30) days before the bond expiration date. Claimants against the licensee or its authorized agents may themselves bring suit directly on the security device, or the commissioner may bring suit on behalf of the claimants, either in one (1) action or in successive actions. In the case of an irrevocable letter of credit, licensees shall obtain letters of credit for terms of not less than three (3) years and renew the letters of credit annually.
(b) The security device shall remain in effect until cancellation, which may occur only after thirty (30) days’ written notice to the commissioner. Cancellation shall not affect any liability incurred or accrued during that period.
(c) The security device shall remain in place for three (3) years after the licensee ceases money transmission operations in the state. However, notwithstanding this provision, the commissioner may permit the security device to be reduced or eliminated prior to that time to the extent that the amount of the licensee’s payment instruments outstanding in this state are reduced. The commissioner may also permit a licensee to substitute a letter of credit or other form of security device acceptable to the commissioner for the security device in place at the time the licensee ceases money transmission operations in the state.
Tenn. Code Ann. § 45-7-109
Each application must be accompanied by a nonrefundable application fee in the amount of two hundred fifty dollars ($250) for those applicants proposing four (4) or fewer agents and five hundred dollars ($500) for those applicants proposing five (5) or more agents.
Tenn. Code Ann. § 45-7-110
(a) Upon the filing of a complete application, the commissioner shall investigate the financial condition and responsibility, financial and business experience, character and general fitness of the applicant. The commissioner may conduct an on-site investigation of the applicant, the reasonable cost of which shall be borne by the applicant. If the commissioner finds that the applicant’s business will be conducted honestly, fairly and in a manner commanding the confidence and trust of the community, and that the applicant has fulfilled the requirements imposed by this chapter and has paid the required license fee, the commissioner shall issue a license to the applicant authorizing the applicant to engage in the licensed activities in this state until the next license renewal period established by § 45-7-111. If these requirements have not been met, the commissioner shall deny the application in a writing setting forth the reasons for the denial.
(b) The commissioner shall approve or deny every application for an original license within one hundred eighty (180) days from the date a complete application is submitted, which period may be extended by the written consent of the applicant. The commissioner shall notify the applicant of the date when the application is deemed complete. In the absence of approval or denial of the application, or consent to the extension of the one hundred eighty-day period, the application is deemed approved and the commissioner shall issue the license effective as of the first day after the one hundred eighty-day or extended period has elapsed.
(c) Any applicant aggrieved by a denial issued by the commissioner under this section may, at any time within thirty (30) days from the date of receipt of written notice of the denial, contest the denial by requesting a public hearing.
Tenn. Code Ann. § 45-7-111
(a) The commissioner shall, by rule, establish an annual fee for renewal of a license under this chapter.
(b) Licenses issued or renewed pursuant to this chapter shall expire on December 31. Each license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the requirements of § 45-7-105, including the security device adjusted in accordance with § 45-7-108, and the payment of the license renewal fee to the commissioner.
(c) Licenses issued or renewed under the former provisions of this chapter shall instead expire on December 31, 2013.
(d) The licensee must include in its renewal application:
(1) A copy of its most recent audited unconsolidated annual financial statement (including balance sheet, statement of income or loss, statement of changes in shareholder’s equity and statement of changes in financial position), except that a licensee may provide the most recent audited consolidated annual financial statement of the parent corporation if the statement separately includes the balance sheet, statement of income or loss, statement of changes in shareholder’s equity and statement of changes of financial position of the licensee. A licensee who does not transmit money in this state through more than an aggregate of four (4) locations may provide a financial statement certified by the owner or manager of the licensee;
(2) [Deleted by 2020 amendment.]
(3) Any material changes to any of the information submitted by the licensee on its original application that have not previously been reported to the commissioner on any other report required to be filed under this chapter;
(4) [Deleted by 2020 amendment.]
(5) [Deleted by 2020 amendment.]
(6) Notification of material litigation or litigation relating to money transmission; and
(7) Other information the commissioner may deem appropriate for the proper enforcement of this chapter.
(e) Failure to pay the renewal fee or to submit a completed renewal application between November 1 and December 31 shall cause the license to expire at the close of business on December 31.
(f) If an applicant for license renewal under this chapter was engaged in the business of selling or issuing money orders on April 30, 1995, at not more than four (4) locations, and if the applicant possessed a duly issued license to engage in the business as was required at the time by [former] § 45-7-102, and if the applicant currently engages in the business of money transmission at not more than four (4) locations, then the applicant shall not be required to submit an audited financial statement pursuant to this section.
Tenn. Code Ann. § 45-7-112
(a) Within fifteen (15) days of the occurrence of any one (1) of the events listed in subdivisions (a)(1)–(5), a licensee shall file a written report with the commissioner describing the event and its expected impact on the licensee’s activities in the state:
(1) The filing for bankruptcy or reorganization by the licensee;
(2) The institution of revocation or suspension proceedings against the licensee by any state or governmental authority with regard to the licensee’s money transmission activities;
(3) Any felony indictment of the licensee or any of its officers, directors or principals related to money transmission activities;
(4) Any felony conviction of the licensee or any of its officers, directors or principals related to money transmission activities; and
(5) Other events that the commissioner may determine.
(b) An authorized agent shall report to the licensee the theft or loss of payment instruments valued at five thousand dollars ($5,000) or more within twenty-four (24) hours from the time the agent knew or should have known of the theft or loss. Upon the receipt of the report, the licensee shall immediately provide the information to the commissioner.
Tenn. Code Ann. § 45-7-113
(a) A change in control of a licensee shall require prior notice to the commissioner. In the case of a publicly traded corporation, notification shall be made in writing within fifteen (15) days of a change or acquisition of control of a licensee. Upon notification, the commissioner may require information deemed necessary to determine whether an application for a license is required. The commissioner may waive the filing of an application if, in the commissioner’s discretion, the change in control does not pose any risk to the interests of the public.
(b) Whenever control of a licensee is acquired or exercised in violation of this section, the license of the licensee shall be deemed revoked as of the date of the unlawful acquisition of control. The licensee, or its controlling person, shall surrender the license to the commissioner on demand.
Tenn. Code Ann. § 45-7-114
(a) The commissioner may conduct periodic on-site examinations of a licensee. The commissioner may also examine a licensee’s authorized or apparent agents. At the commissioner’s discretion, written notice of the examination may be provided to the licensee or agents. In conducting the examination, the commissioner or the commissioner’s staff has full and free access to all the books, papers and records of the licensee and its agents and may summon and qualify as witnesses, under oath, and examine the directors, officers, members, agents and employees of any licensee or agent, and any other person concerning the condition and affairs of the licensee. The licensee shall pay all reasonably incurred costs of the examination. The on-site examination may be conducted in conjunction with examinations to be performed by representatives of agencies of another state or states. The commissioner, in lieu of an on-site examination, may accept the examination report of an agency of another state, or a report prepared by an independent accounting firm, and reports so accepted are considered for all purposes as an official report of the commissioner.
(b) Upon reasonable cause, the commissioner may conduct an on-site examination of any unlicensed person to determine whether violations of this chapter have occurred or are occurring. In conducting the examination, the commissioner has the applicable powers provided pursuant to [former] § 45-1-207.
Tenn. Code Ann. § 45-7-115
(a) Each licensee shall make, keep and preserve the following books, accounts and other records for a period of three (3) years:
(1) A daily record or records of payment instruments sold;
(2) A general ledger containing all assets, liabilities, capital, income and expense accounts, which general ledger shall be posted at least monthly;
(3) Settlement sheets received from authorized agents;
(4) Bank statements and bank reconciliation records;
(5) Records of outstanding payment instruments;
(6) Records of each payment instrument paid within the three-year period; and
(7) A list of the names and addresses of all of the licensee’s authorized agents, as well as copies of each authorized agent contract.
(b) Maintenance of the documents as is required by this section in a photographic or other similar form shall constitute compliance with this section.
(c) Records may be maintained at a location other than within this state as long as they are made accessible to the commissioner.
(d) Nothing in this section shall prohibit a licensee from adhering to state or federal record retention requirements for a period greater than three (3) years.
Tenn. Code Ann. § 45-7-116
(a) Notwithstanding any other provision of law, all information or reports obtained by the department of financial institutions from an applicant, licensee or authorized agent, whether obtained through reports, applications, examination, audits, investigation, or otherwise, including, but not limited to:
(1) All information contained in or related to examination, investigation, operating, or condition reports prepared by, on behalf of, or for the use of the department; or
(2) Financial statements, balance sheets, or authorized agent information;
are confidential and may not be disclosed or distributed outside the department by the commissioner or any officer or employee of the department, except that the commissioner is authorized to disclose confidential information to any local, state or federal agency in a manner the commissioner deems proper and to the Conference of State Bank Supervisors and the Money Transmitter Regulators Association; provided, that these associations have entered into confidentiality agreements with the commissioner. A licensed money transmitter is entitled to access to a copy of the report of examination on the money transmitter prepared by the commissioner or the commissioner’s designee. The report of examination in the possession of a licensee shall remain confidential and shall not be subject to subpoena.
(b) Nothing in this section shall prohibit the commissioner from releasing to the public a list of persons licensed under this chapter or from releasing aggregated financial data on the licensees.
Tenn. Code Ann. § 45-7-117
After notice and an opportunity for a hearing, the commissioner may suspend or revoke a licensee’s license if the commissioner finds that:
(1) Any fact or condition exists that, if it had existed at the time when the licensee applied for its license, would have been grounds for denying the application;
(2) The licensee’s net worth becomes inadequate and the licensee, after ten (10) days’ written notice from the commissioner, fails to take steps the commissioner deems necessary to remedy the deficiency;
(3) The licensee knowingly violates any provision of this chapter or any rule or order validly promulgated or issued by the commissioner under authority of this title;
(4) An agent or agents of a licensee knowingly violates any provision of this chapter or any rule or order validly promulgated or issued by the commissioner under authority of this title, without the licensee making reasonable efforts to correct the violations known to the licensee to exist;
(5) The licensee is conducting business in an unsafe or unsound manner;
(6) The licensee is insolvent;
(7) The licensee has demonstrated a pattern of failure or refusal to promptly pay obligations on payment instruments or transmissions of money or has made an assignment for the benefit of its creditors;
(8) The licensee has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy;
(9) The licensee refuses to permit the commissioner to make any examination authorized by this chapter;
(10) The licensee willfully fails to make any report or pay any fee required by this chapter;
(11) The licensee has been found guilty of any fraudulent act or practice; or
(12) The licensee has made any material false representation to the commissioner in any application or report filed with the commissioner.
Tenn. Code Ann. § 45-7-118
Licensees desiring to conduct licensed activities through authorized agents shall authorize each agent to operate pursuant to an express written contract, which shall, at a minimum, provide the following:
(1) That the licensee appoints the person as its agent with authority to sell payment instruments or transmit money on behalf of the licensee in compliance with state and federal law;
(2) That neither a licensee nor an authorized agent may authorize sub-agents without the written consent of the commissioner;
(3) That licensees are subject to supervision and regulation by the commissioner;
(4) An acknowledgment that the authorized agent consents to the commissioner’s inspection, with or without prior notice to the licensee or authorized agent or agents, of the books and records of authorized agent or agents of the licensee; and
(5) That an authorized agent is under a duty to act only as authorized under the contract with the licensee and that an authorized agent who exceeds its authority is subject to cancellation of its contract by the licensee and disciplinary action by the commissioner.
Tenn. Code Ann. § 45-7-119
(a) An authorized agent shall not make any fraudulent or false statement or misrepresentation to a licensee or to the commissioner.
(b) All money transmission or sale or issuance of payment instrument activities conducted by authorized agents shall be strictly in accordance with the licensee’s written procedures provided to the authorized agent.
(c) An authorized agent shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the authorized agent. The failure of an authorized agent to remit all money owing to a licensee within the contractual time period shall result in liability of the authorized agent to the licensee for three (3) times the licensee’s actual damages. The commissioner shall have the discretion to set, by regulation, the maximum remittance time.
(d) All funds, less fees, received by an authorized agent of a licensee from the sale or delivery of a payment instrument issued by a licensee or received by an authorized agent for transmission shall, from the time the funds are received by the authorized agent until the time when the funds or an equivalent amount are remitted by the authorized agent to the licensee, constitute trust funds owned by and belonging to the licensee. If an authorized agent commingles the funds with any other funds or property owned or controlled by the authorized agent, all commingled proceeds and other property shall be impressed with a trust in favor of the licensee in an amount equal to the amount of the proceeds due the licensee.
Tenn. Code Ann. § 45-7-120
(a)
(1) The commissioner may issue an order suspending or barring the authorized agent from continuing to be or becoming an authorized agent of any licensee during the period for which the order is in effect, if, after notice and an opportunity for a hearing, the commissioner finds that any authorized agent of a licensee or any director, officer, employee, or controlling person of the authorized agent has:
(A) Violated any provision of this chapter or any rule or regulation or order issued under this chapter;
(B) Engaged or participated in any unsafe or unsound act with respect to the business of selling or issuing payment instruments of the licensee or the business of money transmission; or
(C) Made or caused to be made in any application or report filed with the commissioner or any proceeding before the commissioner, any statement that was at the time and in the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in the application or report any material fact that is required to be stated in the application or report.
(2) Upon issuance of the order, the licensee shall terminate its relationship with the authorized agent according to the terms of the order.
(b) Any authorized agent to whom an order is issued under this section may apply to the commissioner to modify or rescind the order. The commissioner shall not grant the application unless the commissioner finds that it is in the public interest to do so and that it is reasonable to believe that the person will, if and when the person is permitted to resume being an authorized agent of a licensee, comply with all applicable provisions of this chapter and any regulation or order issued under this title.
Tenn. Code Ann. § 45-7-121
A licensee’s responsibility to any person who purchases a payment instrument or money transmission transaction from a licensee or a licensee’s authorized agent shall be limited to the face amount of the payment instrument or money transmission transaction purchased.
Tenn. Code Ann. § 45-7-122
The Uniform Administrative Procedures Act, compiled in title 4, chapter 5, applies to any hearing afforded pursuant to this chapter.
Tenn. Code Ann. § 45-7-123
If, after notice and an opportunity for a hearing, the commissioner finds that a person has violated this chapter or a rule adopted under this chapter, the commissioner may order the person to pay to the commissioner a civil penalty in an amount specified by the commissioner, not to exceed one thousand dollars ($1,000) for each violation or, in the case of a continuing violation, one thousand dollars ($1,000) for each day that the violation continues.
Tenn. Code Ann. § 45-7-124
(a) The commissioner may enter into consent orders at any time with any person to resolve any matter arising under this chapter. A consent order must be signed by the person to whom it is issued or a duly authorized representative, and must indicate agreement to the terms contained therein. A consent order need not constitute an admission by any person that any provision of this chapter, or any rule, regulation or order promulgated or issued thereunder has been violated, nor need it constitute a finding by the commissioner that the person has violated any provision of this chapter or any rule, regulation or order promulgated or issued thereunder.
(b) Notwithstanding the issuance of a consent order, the commissioner may seek civil or criminal penalties or compromise civil penalties concerning matters encompassed by the consent order.
(c) In cases involving extraordinary circumstances requiring immediate action, the commissioner may take any enforcement action authorized by this chapter without providing the opportunity for a prior hearing, but shall promptly afford a subsequent hearing upon an application to rescind the action taken, which is filed with the commissioner within twenty (20) days of the receipt of the notice of the commissioner’s emergency action
Tenn. Code Ann. § 45-7-125
(a) Any person who knowingly and willfully violates any provision of this chapter or any order or rule pursuant thereto for which a penalty is not specifically provided commits a Class C misdemeanor; provided, that each day the violation occurs constitutes a separate offense.
(b) Any person who knowingly and willfully makes a material, false statement in any document filed or required to be filed under this chapter with the intent to deceive the recipient of the document commits a Class E felony.
(c) Any person who knowingly and willfully fails to file a document required to be filed under this chapter commits a Class E felony.
(d) Any person who carries on an unauthorized money transmitter business commits a Class E felony.
(e) Any person who obstructs or endeavors to obstruct a lawful examination of a licensee or agent commits a Class E felony.
(f) It is the duty of the commissioner to submit to the district attorneys general for the respective counties of the state any criminal violation of this chapter known by the commissioner to have occurred in the county. The commissioner shall also report the violation to the appropriate division of the Tennessee bureau of investigation. The commissioner may provide the information to the attorney general and reporter or the appropriate federal authorities, or both, as the commissioner deems proper. Confidential information that is communicated by the commissioner pursuant to this section remains confidential in the hands of the agency to which the information is reported, and does not become a matter of public record by virtue of this communication.
Tenn. Code Ann. § 45-7-126
All rules and regulations promulgated by the commissioner pursuant to authority conferred by this chapter or this title will be in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In addition, at the time the commissioner files a notice of proposed adoption, amendment or repeal of a rule for public comment, a copy of the notice shall be sent by regular United States mail, postage prepaid, to all then current licensees under this chapter.
Tenn. Code Ann. § 45-7-127
(a) In addition to any other powers imposed upon the commissioner by law, the commissioner is authorized to require persons subject to this chapter to be licensed through a multi-state automated licensing system. Pursuant to this authority, the commissioner may:
(1) Promulgate whatever rules and regulations are reasonably necessary for participation in, transition to or operation of a multi-state automated licensing system;
(2) Establish relationships or enter into agreements that are reasonably necessary for participation in, transition to, or operation of a multi-state automated licensing system. The agreements may include, but are not limited to, operating agreements, information sharing agreements, interstate cooperative agreements, and technology licensing agreements;
(3) Require that applications for licensing under this chapter and renewals of such licenses be filed with a multi-state automated licensing system;
(4) Require that any fees required to be paid under this chapter be paid through a multi-state automated licensing system;
(5) Establish deadlines for transitioning licensees to a multi-state automated licensing system. The commissioner has the authority to deny any applications or renewal applications not filed with a multi-state automated licensing system after such deadlines have passed, notwithstanding any dates established elsewhere in this chapter. The commissioner shall, however, provide reasonable notice of any transition deadlines to licensees; and
(6) Take such further actions as are reasonably necessary to give effect to this section.
(b) Nothing in this section shall authorize the commissioner to require a person who is not subject to this chapter to submit information to, or to participate in, a multi-state automated licensing system that is operated or participated in pursuant to this chapter.
(c) Notwithstanding any other provision of this section, the commissioner retains full authority and discretion to license persons under this chapter and to enforce this chapter to its fullest extent. Nothing in this section shall be deemed to be a reduction or derogation of that authority and discretion.
(d) Applicants for, and holders of, licenses issued under this chapter shall pay all costs associated with submitting an application to or transitioning a license to a multi-state automated licensing system, as well as all costs required by a multi-state automated licensing system for maintaining and renewing any license issued by the commissioner on a multi-state automated licensing system.
Tenn. Code Ann. § 45-7-128
The commissioner is authorized to use a multi-state automated licensing system as an agent for channeling information, whether criminal or noncriminal in nature, whether derived from or distributed to the United States department of justice or any other state or federal governmental agency, or any other source, that the commissioner is authorized to request or distribute under this chapter.
Tenn. Code Ann. § 45-7-129
In order to promote more effective regulation and reduce regulatory burden through supervisory information sharing:
(1) The requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to a multi-state automated licensing system, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to such information or material, shall continue to apply to the information or material after the information or material has been disclosed to a multi-state automated licensing system. The information or material may be shared with all state and federal regulatory officials with money transmission oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal or state law, including the protection available under §§ 45-1-120 and 45-7-116;
(2) For purposes of subdivision (1), the commissioner is authorized to enter into agreements or sharing agreements with other governmental agencies, the Conference of State Bank Supervisors or other associations representing governmental agencies as established by rule, regulation or order of the commissioner;
(3) Information or material that is subject to a privilege or confidential under subdivision (1) shall not be subject to:
(A) Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or any agency of the federal government or the respective state; or
(B) Subpoena or discovery or admission into evidence in any private civil action or administrative process, unless with respect to any privilege held by a multi-state automated licensing system applicable to such information or material, the person to whom such information or material pertains waives that privilege, in whole or in part, in the discretion of such person;
(4) This section shall supersede any inconsistent provisions of title 10, chapter 7, part 5, pertaining to the records open to public inspection;
(5) This section shall not apply with respect to information or material relating to publicly adjudicated disciplinary and enforcement actions against persons subject to this chapter that is included in a multi-state automated licensing system for access by the public.
Tenn. Code Ann. § 45-7-130
Each licensee shall, pursuant to an order or direction of the commissioner, submit to a multi-state automated licensing system reports of condition in the form and containing the information the commissioner requires.