Virginia 2025 Regular Session

Virginia House Bill HB343

Introduced
1/5/24  

Caption

Financial institutions; regulation of money transmitters, penalty.

Impact

The legislation impacts several sections of the Code of Virginia, particularly those concerning the requirements for licensing, penalties for non-compliance, and operational conduct of financial institutions. It establishes the steps necessary for licensing money transmitters and imposes a surety bond requirement, ensuring that businesses are financially responsible and can cover their obligations to customers. Furthermore, the bill mandates regular reporting and examination of these institutions by the Virginia Commission, enhancing oversight and security for consumers engaging in money transfer services.

Summary

House Bill 343 aims to regulate financial institutions, specifically focusing on money transmitters and sellers of money orders in Virginia. The bill provides a comprehensive framework for licensing these entities, setting out detailed definitions and requirements for operations related to money transmission. One of the primary objectives is to protect consumers by ensuring that financial institutions engage in these activities within a regulated and reliable environment, thereby reducing risks associated with money transmission services.

Contention

Notable points of contention surrounding HB343 likely include the additional regulatory burdens placed on small money transmission businesses and concerns regarding the balance between consumer protection and the potential hindrances to business operations. Critics may argue that stringent requirements could stifle competition, especially among new entrants in the market, by imposing excessive compliance costs. Proponents, on the other hand, argue that the safeguards established by the bill are essential for protecting consumers from fraud and ensuring the integrity of financial transactions.

Companion Bills

VA HB343

Carry Over Financial institutions; regulation of money transmitters, penalty.

Similar Bills

VA HB343

Financial institutions; regulation of money transmitters, penalty.

VA HB1942

Financial institutions; regulation of money transmitters, penalty, effective date.

MA H1106

Relative to the regulation of money transmission by the Division of Banks

KS SB406

Enacting the Kansas money transmission act.

KS HB2560

Enacting the Kansas money transmission act and the Kansas earned wage access services act, providing when applications under the state banking code are considered abandoned or expired, allowing an originating trustee to have such trustee's principal place of business outside of Kansas, authorizing any person to become a depositor or lessor of a safe deposit box, providing methods in which bank deposits may be withdrawn by a depositor and prohibiting banks from requiring a cosigner for an account of a child in the custody of the secretary for children and families, secretary of corrections or a federally recognized Indian tribe.

TN HB0316

AN ACT to amend Tennessee Code Annotated, Title 45, relative to the regulation of money transmitters.

TN SB0268

AN ACT to amend Tennessee Code Annotated, Title 45, relative to the regulation of money transmitters.

MI HB5798

Financial institutions: money transmitters; money transmission modernization act; create. Creates act & repeals 2006 PA 250 (MCL 487.1001 - 487.1047).