CHAPTER 7. Examinations, Special Reports, and Records [2120. - 2127.]

Cal. Financial Code - FIN 7.

in effect

Cal. Financial Code - FIN § 2120. Section 2120.

(a) The commissioner may at any time and from time to time examine the business and any office, within or outside this state, of any licensee or any agent of a licensee in order to ascertain whether that business is being conducted in a lawful manner and whether all money transmission is properly accounted for. (b) The directors, officers, and employees of any licensee or agent of a licensee being examined by the commissioner shall exhibit to the commissioner, on request, any or all of the licensee’s accounts, books, correspondence, memoranda, papers, and other records and shall otherwise facilitate the examination so far as it may be in their power to do so.

Cal. Financial Code - FIN § 2121. Section 2121.

The commissioner may consult and cooperate with other state or federal money transmission regulators in enforcing and administering this division. They may jointly pursue examinations and take other official action that they are otherwise empowered to take.

Cal. Financial Code - FIN § 2122. Section 2122.

A licensee shall file a report with the commissioner within five business days after the licensee has reason to know of the occurrence any of the following events: (a) The filing of a petition by or against the licensee under the United States Bankruptcy Code (11 U.S.C. Secs. 101-110, incl.) for bankruptcy or reorganization. (b) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors. (c) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed. (d) The cancellation or other impairment of the licensee’s bond or other security. (e) A charge or conviction of the licensee or of an executive officer, manager, director, or person in control of the licensee for a felony. (f) A charge or conviction of an agent for a felony.

Cal. Financial Code - FIN § 2123. Section 2123.

A licensee that is a money services business under the regulations adopted pursuant to the United States Bank Secrecy Act (31 C.F.R. Chapter X) and the agents of the licensee that are money services businesses shall comply with those regulations.

Cal. Financial Code - FIN § 2124. Section 2124.

(a) A licensee shall maintain the following records for determining its compliance with this division for at least three years: (1) A record of each payment instrument or stored value obligation sold. (2) A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts. (3) Bank statements and bank reconciliation records. (4) Records of outstanding payment instruments and stored value obligations. (5) Records of each payment instrument and stored-value obligation paid within the three-year period. (6) A list of the last known names and addresses of all of the licensee’s agents and their branch offices. (7) Any other records the commissioner reasonably requires by order or regulation. (b) A licensee or its agent shall maintain records of any receipts provided pursuant to Section 2102 for six months or a longer period of time specified in the contract between the licensee and its agent. (c) The items specified in subdivisions (a) and (b) may be maintained in any form of record. (d) Records may be maintained outside this state if they are made available to the commissioner on seven days’ notice that is sent in a record. (e) If records not required to be maintained in English pursuant to Section 456 are in a language other than English, the licensee shall provide records translated into English within seven days’ notice that is sent in a record. (f) Each licensee shall maintain any other records required by the commissioner.

Cal. Financial Code - FIN § 2125. Section 2125.

A licensee adding or replacing a key individual shall do all of the following: (a) Provide notice to the commissioner within 15 days after the effective date of the key individual’s appointment. (1) Within 90 days of compliance with this subdivision, the commissioner may issue a notice of disapproval of a key individual if the competence, experience, character, or integrity of the individual supports a determination by the commissioner that it is not in the best interests of the public or the licensee’s customers to permit the individual to be a key individual of the licensee. (2) If the notice provided pursuant to this subdivision is not disapproved within 90 days after the date on which the notice was provided, the key individual shall be deemed approved. This timeframe does not apply to applications filed pursuant to Section 2035. (b) Provide information, as applicable, required by Sections 80.4105 and 80.4105.10 of Title 10 of the California Code of Regulations, as amended from time to time, within 45 days of the effective date.

Cal. Financial Code - FIN § 2127. Section 2127.

Before January 1, 2025, a person licensed under this division to engage in the business of money transmission shall not be subject to a provision of the act adding this section to the extent that the provision conflicts with the law in effect on December 31, 2023, or to the extent the provision establishes new requirements not imposed under the law in effect on December 31, 2023.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026