Rule 80-3-1-.03 - Authorized Agents(1) Licensees may designate authorized agents to engage in money transmission, and the place of business of such authorized agents will not be construed as a branch office of the licensee. The licensee must conduct a reasonable risk-based background investigation sufficient to determine whether the authorized agent has complied and likely will comply with applicable state and federal law. The licensee must establish and periodically review policies and procedures that are reasonably designed to ensure that the licensee's authorized agents comply with applicable state and federal law. The authorized agent must be bonded and the licensee made solely liable for the payment of the issued payment instruments or transmitted money upon proper presentation and demand. The licensee's blanket bond coverage shall extend to cover transactions by the authorized agent and the conveyance of the funds to the licensee or the licensee's depository financial institution. The responsibility of both the licensee and its authorized agent shall be defined in a written agreement setting forth the duties of both parties and providing for remuneration of the authorized agent. The written agreement between the licensee and its authorized agent must include the following: (a) An acknowledgement by the authorized agent of its receipt of the licensee's written policies and procedures set forth above;(b) A notification that the licensee is subject to regulation by the Department and that, as part of that regulation, the Department may issue administrative action against the licensee and its authorized agent, including but not limited to rescinding the authorization to act as an authorized agent of the licensee; and,(c) An acknowledgment by the authorized agent that it is subject to and will cooperate with any investigation or examination conducted by the Department pursuant to O.C.G.A. § 7-1-689.(2) Licensees are required to submit authorized agent information, including notices of additional locations or changes in locations operated by an authorized agent, to the Department via the Nationwide Multistate Licensing System and Registry. The initial authorized agent list should include all authorized agents of the licensee as of the date the licensee begins business. Future reports related to authorized agents will be submitted on a quarterly basis. The initial authorized agent list as well as the subsequent quarterly reports shall be deemed to be the licensee's notice of new locations operated by authorized agents as well as the licensee's application for approval of the designated authorized agents. The notice required by this section shall also include the name and business locations of any authorized agent whose agency has been revoked, suspended, cancelled, terminated, or voluntarily closed by the licensee since the previous report. The reason for such revocation or suspension, and the amount of any outstanding claim by the licensee against the authorized agent relating to money transmission shall be provided to the Department upon request. Failure to report changes to authorized agents and/or locations in the reporting period in which the authorized agent began or ceased offering the licensee's services can result in fines, revocation, suspension, or other administrative action by the Department.(3) Proceeds received from money transmission net of fees charged and retained by the authorized agent shall be remitted to the licensee in accordance with the terms of the contract between the licensee and the authorized agent.Ga. Comp. R. & Regs. R. 80-3-1-.03
O.G.G.A. §§ 7-1-61, 7-1-683.1, 7-1-690.
Original Rule entitled "Report of Criminal Violations" adopted. F. and eff. June 30, 1965.Repealed: New Rule entitled "Quarterly Notice of Agents and Locations" adopted. F. Nov. 19, 1975; eff. Dec. 9, 1975.Repealed: New Rule entitled "Wire Transfer Services" adopted. F. Sept. 4, 1990; eff. Sept. 24, 1990.Amended: F. Aug. 26, 1997; eff. Sept. 15, 1997.Amended: Rule retitled "Money Service Businesses: Compliance With Federal Requirements". F. July 28, 2003; eff. August 17, 2003.Amended: F. Aug. 22, 2006; eff. Sept. 11, 2006.Amended: F. Aug. 15, 2007; eff. Sept. 4, 2007.Amended: F. Aug. 17, 2009; eff. Sept. 6, 2009.Amended: F. Jun. 10, 2014; eff. Jun. 30, 2014.Amended: F. June 27, 2018; eff. July 17, 2018.Amended: New title, "Authorized Agents." F. Dec. 16, 2021; eff. Jan. 5, 2022.Amended: F. July 7, 2023; eff. July 27, 2023.