                                 CODE OF VIRGINIA

(EFFECTIVE JULY 1, 2026) CEASE AND DESIST ORDERS (§ 6.2-1956)

A. If the Commission determines that (i) any person has violated any provision
of this chapter or any regulation adopted hereunder or (ii) a licensee is
engaging in one or more unsafe or unsound practices, the Commission may, upon 21
days&#8217; notice in writing, order such person to cease and desist from such
practices and to comply with the provisions of this chapter. The notice shall be
sent by certified mail to the principal place of business of such person or
other address authorized under &#xA7; 12.1-19.1 and shall state the grounds for
the contemplated action. Within 14 days of mailing the notice, the person or
persons named therein may file with the clerk of the Commission a written
request for a hearing. The Commission may enforce compliance with any such order
issued under this section by imposition and collection of such fines and
penalties as may be prescribed by law.

B. The Commission may, pursuant to the procedures set forth in subsection A,
order a licensee to cease and desist from allowing an authorized delegate to
engage in money transmission on the licensee&#8217;s behalf upon any of the
following grounds:

   1. The authorized delegate violated this chapter or a regulation adopted or an
   order issued under this chapter or violated any other law or regulation
   applicable to the conduct of the licensee&#8217;s business;

   2. The authorized delegate did not cooperate with an examination or
   investigation by the Commission;

   3. The authorized delegate engaged in fraud, misrepresentation, deceit, or
   gross negligence;

   4. The authorized delegate has been convicted of a violation of a state or
   federal money laundering statute;

   5. The competence, experience, character, or general fitness of the authorized
   delegate indicates that it is not in the public interest to permit the
   authorized delegate to engage in money transmission; or

   6. The authorized delegate is engaging in an unsafe or unsound practice. In
   determining whether the authorized delegate is engaging in an unsafe or
   unsound practice, the Commission may consider the volume and condition of the
   licensee&#8217;s money transmission business, the magnitude of any loss, the
   gravity of any violation of this chapter, the previous conduct of the person
   involved, and any other factors that the Commission deems relevant.

C. When, in the opinion of the Commission, immediate action is required to
protect the public interest, a cease and desist order may be issued immediately
without a prior hearing. In such cases, the Commission shall make a hearing
available to the person on an expedited basis.

D. If required to conserve the assets of a licensee or protect the public
interest, the Commission may order a licensee and its authorized delegates to
cease and desist from selling or issuing payment instruments or stored value or
receiving additional money for transmission.

E. The Commission shall have jurisdiction to enter and enforce a cease and
desist order against any person, regardless of whether such person is present in
the Commonwealth, who directly or indirectly (i) sells or issues payment
instruments or stored value to any person located in the Commonwealth or (ii)
receives money from such persons.

HISTORY: 2025, c. 214.