3 AAC 13.040 - Money services license denial

(a) Subject to (b) and (c) of this section, the department will deny a money services license application if the department determines that

(1) the applicant has not submitted all the information required by AS 06.55 or this chapter;

(2) the application is for a money transmission license and the applicant has not met the security requirements of AS 06.55.104 or the net worth requirement of AS 06.55.107;

(3) under AS 06.55.105(a)(2) or 06.55.203(a)(2), as applicable, permitting the applicant to engage in money transmission or currency exchange is not in the public interest, as demonstrated by findings that may include one or more of the following:

(A) the applicant, an executive officer, a board director, a person in control, or an authorized delegate has been convicted of any felony involving fraud or dishonesty within the past 10 years;

(B) the applicant, an executive officer, a board director, a person in control, or an authorized delegate has been convicted of a crime involving a financial transaction within the past 10 years;

(C) the applicant, an executive officer, a board director, or a person in control has knowingly falsified any information supplied in connection with the application;

(D) the applicant, or any proposed authorized delegate of the applicant, has had an adverse action taken against any license related to providing financial services by a jurisdiction within the United States within the past five years;

(E) the applicant has allowed a business under its control to deteriorate to a condition of insolvency determined by the fact that its liabilities exceed its assets or it cannot meet its liabilities as they mature;

(4) the applicant, or any authorized delegate of the applicant, fails to respond to a request for information from the department;

(5) the applicant's proposed screening process for selecting authorized delegates will be ineffective in determining the fitness of proposed delegates;

(6) the applicant has failed to register with the United States Department of Treasury when required to do so by 31 U.S.C. 5330; or

(7) the applicant, an executive officer, a board director, or a person in control is listed on the specially designated nationals and blocked persons list prepared by the United States Department of Treasury.

(b) Instead of denying an application under (a) of this section, the department may return the application or extend the application period if the department determines that the condition or circumstances that would likely lead to denial may be temporary and resolved satisfactorily within a reasonable period of time. The department may resume processing the application if the department determines that a favorable resolution of the disqualifying condition has occurred.

(c) The department may extend the application period for processing a money services license application if due to staff shortages or encountered problems the department is unable to process the application and complete the investigation mandated by AS 06.55.105(a) or 06.55.203(a) within 120 days after the department receives the complete application.

Notes

3 AAC 13.040

Eff. 7/12/2008, Register 187; am 11/22/2017,Register 224, January 2018

Authority:AS 06.55.103

AS 06.55.104

AS 06.55.105

AS 06.55.107

AS 06.55.203

AS 44.33.020