The Conference of State Bank Supervisors (CSBS) is seeking public comments as it begins to develop model regulations concerning state money transmission and payments.
Specifically, the Request for Information (RFI) seeks feedback on money transmission activities and exemptions, personal vetting requirements for investors, state supervision, and coordination between states. CSBS will use this feedback to draft model legislation on the subject to introduce in all 50 states.
The CSBS Fintech Industry Advisory Panel recommended the idea of creating model payments legislation to streamline multistate licensing and supervision.
“The states are coming together to modernize nonbank licensing and supervision. Working with stakeholders to develop a model law for money transmission has the potential to create a streamlined experience for companies operating regionally or nationally, with substantial cost savings to be had,” John Ryan, president and CEO of CSBS, said.
CSBS is accepting comments until April 20. The comments will be published on the CSBS web site.
CSBS is a national organization made up of bank regulators from all 50 states, as well as American Samoa, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands. CSBS also operates the Nationwide Multistate Licensing System to license and register non-depository financial service providers in the mortgage, money services businesses, consumer finance and debt industries.