Money Transfer Laws and Regulations Update: Minnesota, Nevada, Georgia and Texas |  Shipkevich PLC


On May 24, 2023, the Governor of Minnesota signed SF 2744 bringing changes to various state statutes related to financial institutions. The changes concern the regulation and licensing of money transmitters. New definitions and exceptions are provided, giving the State Commissioner the power to make arrangements with other government officials or regulators to standardize methods and share resources. The commissioner has the power to receive reports from other state or federal agencies, to participate in cross-state oversight procedures, and to conduct joint audits or investigations with other states. The amendments also spell out licensing requirements, including prohibiting unlicensed money transfers, establishing net worth and sponsorship requirements, and allowing the commissioner to establish relationships with the National Multi-State Licensing System and Registry.

In addition to the changes in money transmitter regulations, the changes also include consumer credit, including small dollar loans, short-term consumer credit, short-term loans, and money transmitter-specific requirements. Notable changes include expanding the definition of “annual percentage rate” (APR) to include all interest, financing costs and fees, and redefining “short-term consumer credit” to include loans with a principal or advance to a $1,300 credit limit instead of the previous $1,000. The changes also specify prohibited actions, limit the APR on loans to a maximum of 50%, and prohibit lenders from adding additional fees or payments. These changes affect loans originated on or after January 1, 2024. In addition, the amendments introduce changes to the rules for short-term loans with an APR of more than 36%, which now require an ability to repay analysis to be performed. These provisions come into effect on January 1, 2024.


The Governor of Nevada signed AB 21 on May 24, 2023, revising the state’s regulations governing the licensing and regulation of money transmitters. For example, NRS 671.020 has been amended to include e.g. B. State-insured custodian banks and privately insured custodian banks are narrowly exempt from tax; For example, while previously the law largely exempted “banks”, their parent or trust companies, thrifts, savings banks, credit unions and industrial banks from taxation, regardless of whether those institutions were insured. The changes are consistent with the Model Money Transmission Modernization Act approved by the Conference of State Bank Supervisors (CSBS). Similar to Minnesota, the commissioner has the power to participate in multi-state oversight processes and share information with regulators at both the state and federal levels. The law will come into force on July 1, 2023.


In early May 2023, the Governor of Georgia signed HB 55, which amended regulations governing the licensing of money transmitters and merged regulations governing the licensing of payment instrument sellers. The law introduces requirements for licensees, establishes exceptions, and states that pending applications for a license to sell payment instruments will be considered applications for a money transmitter license beginning July 1. Specifically, the amendment provides that the Department may accept audit reports prepared and prepared by other state or federal agencies to meet this requirement, unless the Department determines that the investigations are unavailable or do not provide information that necessary to fulfill the responsibilities of the Ministry under this requirement Article. In addition, the law requires licensees to notify all applicable authorized representatives within five business days if their license is suspended, revoked, returned, or expired. This law will also come into force on July 1, 2023.


On May 29, 2023, the Governor of Texas signed SB 895, enacting the Money Services Modernization Act. The aim of this law is to establish uniform and coordinated standards for the regulation of money service companies. The implementation of these standards aims to streamline the regulatory process and reduce administrative burden. To that end, a key aspect of the law is the incorporation of networked prudential criteria, allowing the commissioner to participate in multi-state prudential processes coordinated by organizations such as the Conference of State Bank Supervisors and the Money Transmitter Regulators Association. By working with other state and federal regulators, the commissioner can coordinate information sharing, enter into contracts or agreements, and conduct joint audits or investigations. In addition, the commissioner has the power to accept investigation or investigative reports from other states, further increasing the efficiency of regulation.

In addition, the Texas Money Services Modernization Act grants the Commissioner enforcement, auditing and supervisory powers over licensees and authorized money services delegates. The Commissioner also has the power to issue implementing rules and collect costs and fees related to various actions such as applications, audits and investigations. The law includes additional consumer protection provisions, such as including stablecoins within the definition of “money” or “monetary value” under certain conditions. In addition, the law provides exceptions for certain activities, such as when a payee’s agent collects and processes payments for goods or services, with the exception of money transfer services. Finally, the law establishes comprehensive procedures for applying for and renewing a license, covering aspects such as net worth, sponsorship and allowable investment requirements. These procedures ensure that money services businesses comply with the required financial standards. The law will come into force on September 1, 2023.