{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1944.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1944.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1944.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1944.html"}],"law_id":63079,"edition_id":1,"section_id":63079,"structure_id":13396,"section_number":"6.2-1944","catch_line":"(Effective July 1, 2026) Relationship between licensee and authorized delegate; prohibited activities","history":"2025, c. 214.","full_text":"A\n\nAs used in this section, “remit” means (i) to make direct payments of money to a licensee or its representative authorized to receive money or (ii) to deposit money in a bank account specified by the licensee.B\n\nBefore a licensee conducts business through an authorized delegate or allows a person to act as the licensee’s authorized delegate, the licensee shall:1\n\nAdopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee’s authorized delegates comply with applicable state and federal law;2\n\nEnter into a written contract that complies with subsection D; and3\n\nConduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.C\n\nThe licensee’s authorized delegates shall operate in full compliance with applicable state and federal law, and the licensee shall be responsible for implementing and maintaining a reasonable risk-based supervision program to monitor its authorized delegates.D\n\nThe written contract required by subsection B shall be signed by the licensee and the authorized delegate and, at a minimum, shall:1\n\nDesignate the person signing the contract as the licensee’s authorized delegate with the authority to conduct money transmission on behalf of the licensee;2\n\nSet forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;3\n\nRequire the authorized delegate to fully comply with all applicable state and federal laws and regulations;4\n\nRequire the authorized delegate to remit and handle money in accordance with the terms of the contract between the licensee and the authorized delegate;5\n\nImpose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee;6\n\nRequire the authorized delegate to prepare and maintain records as required by this chapter or regulations implementing this chapter, or as reasonably required by the Commission;7\n\nAcknowledge that the authorized delegate consents to examination or investigation by the Commission;8\n\nState that the licensee is subject to regulation by the Commission and that, as part of that regulation, the Commission may require the licensee to revoke an authorized delegate designation; and9\n\nAcknowledge receipt of the written policies and procedures required under subdivision B 1.E\n\nIf the licensee’s license is suspended, revoked, surrendered, or expired, the licensee shall, within five business days, provide documentation to the Commission that the licensee has notified all authorized delegates of the licensee whose names are in a record filed with the Commission of the suspension, revocation, surrender, or expiration of its license. Upon suspension, revocation, surrender, or expiration of the license, all authorized delegates shall immediately cease to provide money transmission on behalf of the licensee.F\n\nAn authorized delegate of a licensee shall hold in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.G\n\nAn authorized delegate shall not use a subdelegate or otherwise designate or appoint another person to conduct money transmission on behalf of a licensee.H\n\nNo person shall engage in the business of money transmission on behalf of a person not licensed under this chapter or exempt pursuant to § 6.2-1923. A person that engages in such activity provides money transmission to the same extent as a person required to be licensed under this chapter and shall be jointly and severally liable with the unlicensed and nonexempt person.","order_by":null,"text":{"0":{"id":230035,"text":"As used in this section, “remit” means (i) to make direct payments of money to a licensee or its representative authorized to receive money or (ii) to deposit money in a bank account specified by the licensee.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":230036,"text":"Before a licensee conducts business through an authorized delegate or allows a person to act as the licensee’s authorized delegate, the licensee shall:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":230037,"text":"Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee’s authorized delegates comply with applicable state and federal law;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":230038,"text":"Enter into a written contract that complies with subsection D; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":230039,"text":"Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":230040,"text":"The licensee’s authorized delegates shall operate in full compliance with applicable state and federal law, and the licensee shall be responsible for implementing and maintaining a reasonable risk-based supervision program to monitor its authorized delegates.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"6":{"id":230041,"text":"The written contract required by subsection B shall be signed by the licensee and the authorized delegate and, at a minimum, shall:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"7":{"id":230042,"text":"Designate the person signing the contract as the licensee’s authorized delegate with the authority to conduct money transmission on behalf of the licensee;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"8":{"id":230043,"text":"Set forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"9":{"id":230044,"text":"Require the authorized delegate to fully comply with all applicable state and federal laws and regulations;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"10":{"id":230045,"text":"Require the authorized delegate to remit and handle money in accordance with the terms of the contract between the licensee and the authorized delegate;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"11":{"id":230046,"text":"Impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"12":{"id":230047,"text":"Require the authorized delegate to prepare and maintain records as required by this chapter or regulations implementing this chapter, or as reasonably required by the Commission;","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"13":{"id":230048,"text":"Acknowledge that the authorized delegate consents to examination or investigation by the Commission;","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"D8"},"14":{"id":230049,"text":"State that the licensee is subject to regulation by the Commission and that, as part of that regulation, the Commission may require the licensee to revoke an authorized delegate designation; and","type":"section","prefixes":["D","8"],"prefix":"8","entire_prefix":"D8","prefix_anchor":"D8","level":2,"prior_prefix":"D7","next_prefix":"D9"},"15":{"id":230050,"text":"Acknowledge receipt of the written policies and procedures required under subdivision B 1.","type":"section","prefixes":["D","9"],"prefix":"9","entire_prefix":"D9","prefix_anchor":"D9","level":2,"prior_prefix":"D8","next_prefix":"E"},"16":{"id":230051,"text":"If the licensee’s license is suspended, revoked, surrendered, or expired, the licensee shall, within five business days, provide documentation to the Commission that the licensee has notified all authorized delegates of the licensee whose names are in a record filed with the Commission of the suspension, revocation, surrender, or expiration of its license. Upon suspension, revocation, surrender, or expiration of the license, all authorized delegates shall immediately cease to provide money transmission on behalf of the licensee.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D9","next_prefix":"F"},"17":{"id":230052,"text":"An authorized delegate of a licensee shall hold in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"18":{"id":230053,"text":"An authorized delegate shall not use a subdelegate or otherwise designate or appoint another person to conduct money transmission on behalf of a licensee.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"19":{"id":230054,"text":"No person shall engage in the business of money transmission on behalf of a person not licensed under this chapter or exempt pursuant to § 6.2-1923. A person that engages in such activity provides money transmission to the same extent as a person required to be licensed under this chapter and shall be jointly and severally liable with the unlicensed and nonexempt person.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G"}},"ancestry":[{"id":13396,"edition_id":1,"name":"Money Transmitters","identifier":"19.1","label":"chapter","depth":3,"order_by":1,"parent_id":13060,"metadata":{},"date_created":"2026-06-26 03:44:48","date_modified":"2026-06-26 03:44:48","permalink":{"id":266479,"object_type":"structure","relational_id":13396,"identifier":"19.1","token":"6.2\/III\/19.1","url":"\/6.2\/III\/19.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13060,"edition_id":1,"name":"Other Regulated Providers of Financial Services","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:12","date_modified":"2026-06-26 03:44:12","permalink":{"id":265721,"object_type":"structure","relational_id":13060,"identifier":"III","token":"6.2\/III","url":"\/6.2\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78099,"structure_id":13396,"section_number":"6.2-1922","catch_line":"(Effective July 1, 2026) Definitions","url":"\/6.2-1922\/","token":"6.2\/III\/19.1\/6.2-1922","metadata":false},{"id":82828,"structure_id":13396,"section_number":"6.2-1923","catch_line":"(Effective July 1, 2026) Exemptions","url":"\/6.2-1923\/","token":"6.2\/III\/19.1\/6.2-1923","metadata":false},{"id":71413,"structure_id":13396,"section_number":"6.2-1924","catch_line":"(Effective July 1, 2026) Implementation","url":"\/6.2-1924\/","token":"6.2\/III\/19.1\/6.2-1924","metadata":false},{"id":79717,"structure_id":13396,"section_number":"6.2-1925","catch_line":"(Effective July 1, 2026) Regulations","url":"\/6.2-1925\/","token":"6.2\/III\/19.1\/6.2-1925","metadata":false},{"id":65871,"structure_id":13396,"section_number":"6.2-1926","catch_line":"(Effective July 1, 2026) Supervision","url":"\/6.2-1926\/","token":"6.2\/III\/19.1\/6.2-1926","metadata":false},{"id":62025,"structure_id":13396,"section_number":"6.2-1927","catch_line":"(Effective July 1, 2026) Networked supervision","url":"\/6.2-1927\/","token":"6.2\/III\/19.1\/6.2-1927","metadata":false},{"id":70844,"structure_id":13396,"section_number":"6.2-1928","catch_line":"(Effective July 1, 2026) Relationship to federal law","url":"\/6.2-1928\/","token":"6.2\/III\/19.1\/6.2-1928","metadata":false},{"id":55220,"structure_id":13396,"section_number":"6.2-1929","catch_line":"(Effective July 1, 2026) License required","url":"\/6.2-1929\/","token":"6.2\/III\/19.1\/6.2-1929","metadata":false},{"id":65393,"structure_id":13396,"section_number":"6.2-1930","catch_line":"(Effective July 1, 2026) Consistent state licensing","url":"\/6.2-1930\/","token":"6.2\/III\/19.1\/6.2-1930","metadata":false},{"id":81034,"structure_id":13396,"section_number":"6.2-1931","catch_line":"(Effective July 1, 2026) Application for license","url":"\/6.2-1931\/","token":"6.2\/III\/19.1\/6.2-1931","metadata":false},{"id":68858,"structure_id":13396,"section_number":"6.2-1932","catch_line":"(Effective July 1, 2026) Information required for certain individuals","url":"\/6.2-1932\/","token":"6.2\/III\/19.1\/6.2-1932","metadata":false},{"id":64243,"structure_id":13396,"section_number":"6.2-1933","catch_line":"(Effective July 1, 2026) Issuance of license","url":"\/6.2-1933\/","token":"6.2\/III\/19.1\/6.2-1933","metadata":false},{"id":73816,"structure_id":13396,"section_number":"6.2-1934","catch_line":"(Effective July 1, 2026) License renewal","url":"\/6.2-1934\/","token":"6.2\/III\/19.1\/6.2-1934","metadata":false},{"id":63168,"structure_id":13396,"section_number":"6.2-1935","catch_line":"(Effective July 1, 2026) Maintenance of license","url":"\/6.2-1935\/","token":"6.2\/III\/19.1\/6.2-1935","metadata":false},{"id":64284,"structure_id":13396,"section_number":"6.2-1936","catch_line":"(Effective July 1, 2026) Acquisition of control","url":"\/6.2-1936\/","token":"6.2\/III\/19.1\/6.2-1936","metadata":false},{"id":70569,"structure_id":13396,"section_number":"6.2-1937","catch_line":"(Effective July 1, 2026) Change of key individual; notice and required information","url":"\/6.2-1937\/","token":"6.2\/III\/19.1\/6.2-1937","metadata":false},{"id":64010,"structure_id":13396,"section_number":"6.2-1938","catch_line":"(Effective July 1, 2026) Report of condition","url":"\/6.2-1938\/","token":"6.2\/III\/19.1\/6.2-1938","metadata":false},{"id":83608,"structure_id":13396,"section_number":"6.2-1939","catch_line":"(Effective July 1, 2026) Audited financials","url":"\/6.2-1939\/","token":"6.2\/III\/19.1\/6.2-1939","metadata":false},{"id":74501,"structure_id":13396,"section_number":"6.2-1940","catch_line":"(Effective July 1, 2026) Authorized delegate reporting","url":"\/6.2-1940\/","token":"6.2\/III\/19.1\/6.2-1940","metadata":false},{"id":76742,"structure_id":13396,"section_number":"6.2-1941","catch_line":"(Effective July 1, 2026) Reports of certain events","url":"\/6.2-1941\/","token":"6.2\/III\/19.1\/6.2-1941","metadata":false},{"id":56737,"structure_id":13396,"section_number":"6.2-1942","catch_line":"(Effective July 1, 2026) Reports required by federal law","url":"\/6.2-1942\/","token":"6.2\/III\/19.1\/6.2-1942","metadata":false},{"id":60649,"structure_id":13396,"section_number":"6.2-1943","catch_line":"(Effective July 1, 2026) Records","url":"\/6.2-1943\/","token":"6.2\/III\/19.1\/6.2-1943","metadata":false},{"id":63079,"structure_id":13396,"section_number":"6.2-1944","catch_line":"(Effective July 1, 2026) Relationship between licensee and authorized delegate; prohibited activities","url":"\/6.2-1944\/","token":"6.2\/III\/19.1\/6.2-1944","metadata":false},{"id":62969,"structure_id":13396,"section_number":"6.2-1945","catch_line":"(Effective July 1, 2026) Timely transmission","url":"\/6.2-1945\/","token":"6.2\/III\/19.1\/6.2-1945","metadata":false},{"id":64138,"structure_id":13396,"section_number":"6.2-1946","catch_line":"(Effective July 1, 2026) Refunds","url":"\/6.2-1946\/","token":"6.2\/III\/19.1\/6.2-1946","metadata":false},{"id":57065,"structure_id":13396,"section_number":"6.2-1947","catch_line":"(Effective July 1, 2026) Receipts","url":"\/6.2-1947\/","token":"6.2\/III\/19.1\/6.2-1947","metadata":false},{"id":61020,"structure_id":13396,"section_number":"6.2-1948","catch_line":"(Effective July 1, 2026) Notice","url":"\/6.2-1948\/","token":"6.2\/III\/19.1\/6.2-1948","metadata":false},{"id":59235,"structure_id":13396,"section_number":"6.2-1949","catch_line":"(Effective July 1, 2026) Payroll processing services","url":"\/6.2-1949\/","token":"6.2\/III\/19.1\/6.2-1949","metadata":false},{"id":81196,"structure_id":13396,"section_number":"6.2-1950","catch_line":"(Effective July 1, 2026) Net worth","url":"\/6.2-1950\/","token":"6.2\/III\/19.1\/6.2-1950","metadata":false},{"id":61605,"structure_id":13396,"section_number":"6.2-1951","catch_line":"(Effective July 1, 2026) Surety bond","url":"\/6.2-1951\/","token":"6.2\/III\/19.1\/6.2-1951","metadata":false},{"id":86619,"structure_id":13396,"section_number":"6.2-1952","catch_line":"(Effective July 1, 2026) Maintenance of permissible investments","url":"\/6.2-1952\/","token":"6.2\/III\/19.1\/6.2-1952","metadata":false},{"id":56681,"structure_id":13396,"section_number":"6.2-1953","catch_line":"(Effective July 1, 2026) Permissible investments","url":"\/6.2-1953\/","token":"6.2\/III\/19.1\/6.2-1953","metadata":false},{"id":61652,"structure_id":13396,"section_number":"6.2-1954","catch_line":"(Effective July 1, 2026) Suspension or revocation of license","url":"\/6.2-1954\/","token":"6.2\/III\/19.1\/6.2-1954","metadata":false},{"id":84954,"structure_id":13396,"section_number":"6.2-1955","catch_line":"(Effective July 1, 2026) Civil penalties","url":"\/6.2-1955\/","token":"6.2\/III\/19.1\/6.2-1955","metadata":false},{"id":54366,"structure_id":13396,"section_number":"6.2-1956","catch_line":"(Effective July 1, 2026) Cease and desist orders","url":"\/6.2-1956\/","token":"6.2\/III\/19.1\/6.2-1956","metadata":false},{"id":68409,"structure_id":13396,"section_number":"6.2-1957","catch_line":"(Effective July 1, 2026) Criminal penalty","url":"\/6.2-1957\/","token":"6.2\/III\/19.1\/6.2-1957","metadata":false}],"previous_section":{"id":60649,"structure_id":13396,"section_number":"6.2-1943","catch_line":"(Effective July 1, 2026) Records","url":"\/6.2-1943\/","token":"6.2\/III\/19.1\/6.2-1943","metadata":false},"next_section":{"id":62969,"structure_id":13396,"section_number":"6.2-1945","catch_line":"(Effective July 1, 2026) Timely transmission","url":"\/6.2-1945\/","token":"6.2\/III\/19.1\/6.2-1945","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1944\/","history_text":"

This law was first created in 2025. The record of its establishment is cataloged in chapter 214<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":82828,"section_number":"6.2-1923","catch_line":"(Effective July 1, 2026) Exemptions","order_by":null,"url":"\/6.2-1923\/"}],"permalink":{"id":266569,"object_type":"law","relational_id":63079,"identifier":"6.2-1944","token":"6.2\/III\/19.1\/6.2-1944","url":"\/6.2-1944\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1944\/","token":"6.2\/III\/19.1\/6.2-1944","dublin_core":{"Title":"(Effective July 1, 2026) Relationship between licensee and authorized delegate; prohibited activities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1944","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, “remit<\/span>” means (i) to make direct payments of money<\/span> to a licensee<\/span> or its representative authorized to receive money<\/span> or (ii) to deposit money<\/span> in a bank account specified by the licensee<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Before a licensee<\/span> conducts business through an authorized delegate<\/span> or allows a person<\/span> to act as the licensee<\/span>’s authorized delegate<\/span>, the licensee<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee<\/span>’s authorized delegates<\/span> comply with applicable state and federal law<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Enter into a written contract<\/span> that complies with subsection D; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Conduct a reasonable risk-based background investigation sufficient for the licensee<\/span> to determine whether the authorized delegate<\/span> has complied and will likely comply with applicable state and federal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The licensee<\/span>’s authorized delegates<\/span> shall operate in full compliance with applicable state and federal law<\/span>, and the licensee<\/span> shall be responsible for implementing and maintaining a reasonable risk-based supervision program to monitor its authorized delegates<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The written contract<\/span> required by subsection B shall be signed by the licensee<\/span> and the authorized delegate<\/span> and, at a minimum, shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Designate the person<\/span> signing the contract<\/span> as the licensee<\/span>’s authorized delegate<\/span> with the authority to conduct money transmission<\/span> on behalf of the licensee<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Set forth the nature and scope of the relationship between the licensee<\/span> and the authorized delegate<\/span> and the respective rights and responsibilities of the parties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Require the authorized delegate<\/span> to fully comply with all applicable state and federal laws<\/span> and regulations; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Require the authorized delegate<\/span> to remit<\/span> and handle money in accordance with the terms of the contract<\/span> between the licensee<\/span> and the authorized delegate<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Impose a trust on money and monetary value<\/span> net of fees received for money transmission<\/span> for the benefit of the licensee<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Require the authorized delegate<\/span> to prepare and maintain records as required by this chapter or regulations implementing this chapter, or as reasonably required by the Commission<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Acknowledge that the authorized delegate<\/span> consents to examination or investigation by the Commission<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> State that the licensee<\/span> is subject to regulation by the Commission<\/span> and that, as part of that regulation, the Commission<\/span> may require the licensee<\/span> to revoke an authorized delegate<\/span> designation; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Acknowledge receipt of the written policies and procedures required under subdivision B 1. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If the licensee<\/span>’s license is suspended, revoked, surrendered, or expired, the licensee<\/span> shall, within five business days, provide documentation to the Commission<\/span> that the licensee<\/span> has notified all authorized delegates<\/span> of the licensee<\/span> whose names are in a record filed with the Commission<\/span> of the suspension, revocation<\/span>, surrender, or expiration of its license. Upon suspension, revocation<\/span>, surrender, or expiration of the license, all authorized delegates<\/span> shall immediately cease to provide money transmission<\/span> on behalf of the licensee<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> An authorized delegate<\/span> of a licensee<\/span> shall hold in trust for the benefit of the licensee<\/span> all money net of fees received from money transmission<\/span>. If any authorized delegate<\/span> commingles any funds received from money transmission<\/span> with any other funds or property owned or controlled by the authorized delegate<\/span>, all commingled funds and other property shall be considered held in trust in favor of the licensee<\/span> in an amount equal to the amount of money net of fees received from money transmission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> An authorized delegate<\/span> shall not use a subdelegate or otherwise designate or appoint another person<\/span> to conduct money transmission<\/span> on behalf of a licensee<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> No person<\/span> shall engage in the business of money transmission<\/span> on behalf of a person<\/span> not licensed under this chapter or exempt pursuant to § 6.2-1923<\/a>. A person<\/span> that engages in such activity provides money transmission<\/span> to the same extent as a person<\/span> required to be licensed under this chapter and shall be jointly and severally liable with the unlicensed and nonexempt person<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n(EFFECTIVE JULY 1, 2026) RELATIONSHIP BETWEEN LICENSEE AND AUTHORIZED DELEGATE;\nPROHIBITED ACTIVITIES (\u00a7 6.2-1944)\n\nA. As used in this section, “remit” means (i) to make direct\npayments of money to a licensee or its representative authorized to receive\nmoney or (ii) to deposit money in a bank account specified by the licensee.\n\nB. Before a licensee conducts business through an authorized delegate or allows\na person to act as the licensee’s authorized delegate, the licensee shall:\n\n 1. Adopt, and update as necessary, written policies and procedures reasonably\n designed to ensure that the licensee’s authorized delegates comply with\n applicable state and federal law;\n\n 2. Enter into a written contract that complies with subsection D; and\n\n 3. Conduct a reasonable risk-based background investigation sufficient for the\n licensee to determine whether the authorized delegate has complied and will\n likely comply with applicable state and federal law.\n\nC. The licensee’s authorized delegates shall operate in full compliance\nwith applicable state and federal law, and the licensee shall be responsible for\nimplementing and maintaining a reasonable risk-based supervision program to\nmonitor its authorized delegates.\n\nD. The written contract required by subsection B shall be signed by the licensee\nand the authorized delegate and, at a minimum, shall:\n\n 1. Designate the person signing the contract as the licensee’s\n authorized delegate with the authority to conduct money transmission on behalf\n of the licensee;\n\n 2. Set forth the nature and scope of the relationship between the licensee and\n the authorized delegate and the respective rights and responsibilities of the\n parties;\n\n 3. Require the authorized delegate to fully comply with all applicable state\n and federal laws and regulations;\n\n 4. Require the authorized delegate to remit and handle money in accordance\n with the terms of the contract between the licensee and the authorized\n delegate;\n\n 5. Impose a trust on money and monetary value net of fees received for money\n transmission for the benefit of the licensee;\n\n 6. Require the authorized delegate to prepare and maintain records as required\n by this chapter or regulations implementing this chapter, or as reasonably\n required by the Commission;\n\n 7. Acknowledge that the authorized delegate consents to examination or\n investigation by the Commission;\n\n 8. State that the licensee is subject to regulation by the Commission and\n that, as part of that regulation, the Commission may require the licensee to\n revoke an authorized delegate designation; and\n\n 9. Acknowledge receipt of the written policies and procedures required under\n subdivision B 1.\n\nE. If the licensee’s license is suspended, revoked, surrendered, or\nexpired, the licensee shall, within five business days, provide documentation to\nthe Commission that the licensee has notified all authorized delegates of the\nlicensee whose names are in a record filed with the Commission of the\nsuspension, revocation, surrender, or expiration of its license. Upon\nsuspension, revocation, surrender, or expiration of the license, all authorized\ndelegates shall immediately cease to provide money transmission on behalf of the\nlicensee.\n\nF. An authorized delegate of a licensee shall hold in trust for the benefit of\nthe licensee all money net of fees received from money transmission. If any\nauthorized delegate commingles any funds received from money transmission with\nany other funds or property owned or controlled by the authorized delegate, all\ncommingled funds and other property shall be considered held in trust in favor\nof the licensee in an amount equal to the amount of money net of fees received\nfrom money transmission.\n\nG. An authorized delegate shall not use a subdelegate or otherwise designate or\nappoint another person to conduct money transmission on behalf of a licensee.\n\nH. No person shall engage in the business of money transmission on behalf of a\nperson not licensed under this chapter or exempt pursuant to § 6.2-1923. A\nperson that engages in such activity provides money transmission to the same\nextent as a person required to be licensed under this chapter and shall be\njointly and severally liable with the unlicensed and nonexempt person.\n\nHISTORY: 2025, c. 214.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}