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MoFo Reenforcement The Enforcement Blog

Are You a Money Transmitter in Michigan? In California?

Posted in Regulatory Developments

The payments and money transmission regulatory landscape continues to evolve.  A key new development is that Michigan has affirmed by legislation that “agent of a payee” transactions meeting certain criteria are not subject to regulation under the state’s money transmission licensing law. However, the California Department of Business Oversight (the “DBO”), which regulates money transmission in California, continues to scrutinize the scope of what constitutes payee-agency activity exempt from money transmission licensing.  In light of these developments, businesses that rely on payee-agency exemptions should closely evaluate the structure of their arrangements to assess whether they come within specific state exemptions and whether any affirmative steps need to be taken to confirm compliance with specific regulators.

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