Nevada Assembly Bill AB21

Nevada 2023 Regular Session

• Refer: 11/16/22
• Introduced: 2/6/23
• Report Pass: 4/13/23
• Engrossed: 4/20/23
• Refer: 4/20/23
• Report Pass: 5/8/23
• Enrolled: 5/22/23
• Chaptered: 5/24/23
• Passed: 5/24/23

Caption

Revises provisions related to persons engaged in the transmission of money and certain related activities. (BDR 55-273)

Impact

One of the significant impacts of AB21 is its provision for the licensing requirements and ongoing compliance for entities involved in money transmission. It mandates that no person may engage in such business without having obtained a license from the Commissioner of Financial Institutions. Moreover, the bill requires authorized delegates to operate under a written contract with licensed entities, revealing a structured approach to ensure consumer protection in financial transactions. The bill also reforms requirements concerning the maintenance of financial securities or assets, replacing certain outdated provisions while ensuring that businesses maintain adequate net worth and permissible investments.

Summary

Assembly Bill No. 21 revises the existing legal framework governing financial services related to money transmission in Nevada. The bill aims to modernize the licensure and regulation of entities engaged in money transmission, such as money transfer services and payment platforms. It introduces defined terms related to money transmission and establishes a new statutory scheme modeled after the Model Money Transmission Modernization Act, fostering greater clarity and consistency in the regulation of these services. The bill emphasizes the necessity for licenses and regulates the conduct of licensed entities, alongside delineating their obligations in safeguarding consumer funds.

Contention

The bill does not seem to have drawn explicit opposition during the discussions, but the inherent complexities and potential ramifications of regulatory changes in financial services could lead to future contention among stakeholders. Some entities may express concerns regarding the financial burdens imposed by compliance with stricter licensing regulations. Moreover, revisions to the confidentiality provisions regarding breach investigations and the discretion afforded to the Commissioner to determine exemptions could raise challenges related to transparency and accountability of the regulatory body.