                                 CODE OF VIRGINIA

(EFFECTIVE JULY 1, 2026) EXEMPTIONS (§ 6.2-1923)

The provisions of this chapter shall not apply to:

1. An operator of a payment system, to the extent that it provides processing,
clearing, or settlement services between or among persons exempted by this
section, or licensees, in connection with wire transfers, credit card
transactions, debit card transactions, stored-value transactions, automated
clearing house transfers, or similar funds transfers.

2. A person appointed as an agent of a payee to collect and process a payment
from a payor to the payee for goods or services, other than money transmission
itself, provided to the payor by the payee, provided that (i) there exists a
written agreement between the payee and the agent directing the agent to collect
and process payments from payors on the payee&#8217;s behalf; (ii) the payee
holds the agent out to the public as accepting payments for goods or services on
the payee&#8217;s behalf; and (iii) payment for the goods and services is
treated as received by the payee upon receipt by the agent so that the
payor&#8217;s obligation is extinguished and there is no risk of loss to the
payor if the agent fails to remit the funds to the payee.

3. A person that acts as an intermediary by processing payments between an
entity that has directly incurred an outstanding money transmission obligation
to a sender and the sender&#8217;s designated recipient, provided that the
entity (i) is properly licensed or exempt from licensing requirements under this
chapter; (ii) provides a receipt, electronic record, or other written
confirmation to the sender identifying the entity as the provider of money
transmission in the transaction; and (iii) bears sole responsibility to satisfy
the outstanding money transmission obligation to the sender, including the
obligation to make the sender whole in connection with any failure to transmit
the funds to the sender&#8217;s designated recipient.

4. The United States or any department, agency, or instrumentality thereof, or
its agent.

5. Money transmission by the United States Postal Service or by an agent of the
United States Postal Service.

6. A state, county, city, or any other governmental agency or governmental
subdivision or instrumentality of a state, or its agent.

7. A federally insured depository financial institution, bank holding company,
office of an international banking corporation, foreign bank that establishes a
federal branch pursuant to the federal International Bank Act (12 U.S.C. &#xA7;
3102 et seq.), corporation organized pursuant to the federal Bank Service
Company Act (12 U.S.C. &#xA7; 1861 et seq.), or corporation organized under the
federal Edge Act (12 U.S.C. &#xA7; 611 et seq.).

8. An electronic funds transfer of governmental benefits for a federal, state,
county, or governmental agency by a contractor on behalf of the United States or
a department, agency, or instrumentality thereof, or on behalf of a state,
county, or governmental subdivision, agency, or instrumentality thereof.

9. A board of trade designated as a contract market under the federal Commodity
Exchange Act (7 U.S.C. &#xA7; 1 et seq.) or a person that, in the ordinary
course of business, provides clearance and settlement services for a board of
trade to the extent of its operation as or for such a board.

10. A registered futures commission merchant under the federal commodities laws
to the extent of its operation as such a merchant.

11. A person registered as a securities broker-dealer under federal or state
securities laws to the extent of its operation as such a broker-dealer.

12. An individual employed by a licensee, authorized delegate, or any person
exempted from the licensing requirements of this chapter when acting within the
scope of employment and under the supervision of the licensee, authorized
delegate, or exempted person as an employee and not as an independent
contractor.

13. A person expressly appointed as a third-party service provider to or agent
of an entity exempt under subdivision 7 solely to the extent that (i) such
service provider or agent is engaging in money transmission on behalf of and
pursuant to a written agreement with the exempt entity that sets forth the
specific functions that the service provider or agent is to perform and (ii) the
exempt entity assumes all risk of loss and all legal responsibility for
satisfying the outstanding money transmission obligations owed to purchasers and
holders of the outstanding money transmission obligations upon receipt of the
purchaser&#8217;s or holder&#8217;s money or monetary value by the service
provider or agent.

14. Any private security services business, licensed under &#xA7; 9.1-139, that
transports or offers to transport money.

15. A person appointed as an agent of a payor for purposes of providing payroll
processing services for which the agent would otherwise need to be licensed,
provided that (i) there is a written agreement between the payor and the agent
that directs the agent to provide payroll processing services on the
payor&#8217;s behalf; (ii) the payor holds the agent out to employees and other
payees as providing payroll processing services on the payor&#8217;s behalf; and
(iii) the payor&#8217;s obligation to a payee, including an employee or any
other party entitled to receive funds via the payroll processing services
provided by the agent, shall not be extinguished if the agent fails to remit the
funds to the payee.

HISTORY: 2025, c. 214.