Model Money Transmission Modernization Act

The bill repeals the current "Money Transmitters Act" and replaces it with the "Money Transmission Modernization Act" (act). The new act enacts, in part, a model law developed in conjunction with the money transmitter industry.

The act reduces regulatory burden by modernizing outdated and inconsistent regulatory requirements, including:

• Clarifying the definition of "control" of a licensee and introducing a rebuttable presumption of control;
• Enabling Colorado's participation in multistate licensing initiatives;
• Codifying the agent-to-payee exemption to licensure;
• Revising prudential standards required for licensing and ongoing monitoring, such as tangible net worth and permissible investment calculations;
• Establishing an irrevocable, standby letter of credit as a permissible investment; and
• Expanding the enforcement actions available in case of nonperformance by a money transmitter.
  (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)