Rule 80-12-9-.02 - Subsidiaries(1) An MALPB can create a separate subsidiary to only carry out such activities that fall within the authorized scope of merchant acquiring activities as set forth in Rule 80-12-4-.01. Prior to utilizing the subsidiary, the MALPB must submit an application for approval describing the activity that the subsidiary will perform, how the proposed activity relates to the MALPB, and what protections will be in place to deal with any associated risks. The Department shall request additional information, approve, conditionally or otherwise, or deny a request for authorization to utilize a subsidiary within sixty (60) days after receipt of the application. In the event the Department does not take any of the above actions within sixty (60) days of receipt of the application, then the application will be deemed approved.(2) Subsidiaries of an MALPB are subject to the same limitations and requirements that apply to an MALPB including, but not limited to, Rule 80-12-9-.01.(3) An MALPB contracting with a subsidiary must have sufficient controls in place to monitor and ensure that the services provided by the subsidiary on behalf of the MALPB comply with the Act and the Rules. The MALPB must also employ good faith efforts to monitor the financial condition of the subsidiary and must notify the Department immediately when it discovers or suspects that the subsidiary has experienced or will experience a net operating loss, is insolvent, or is engaged in illegal activity.Ga. Comp. R. & Regs. R. 80-12-9-.02
O.C.G.A. §§ 7-9-3, 7-9-13.
Original Rule entitled "Subsidiaries" adopted. F. Dec. 3, 2013; eff. Dec. 23, 2013.Amended: F. July 12, 2024; eff. Aug. 1, 2024.Amended: F. Dec 20, 2024; eff. Jan. 9, 2025.