Chapter 7. Examinations, Special Reports, And Records of California Financial Code >> Division 1.2. >> Chapter 7.
(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.
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
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
(e) A charge or conviction of the licensee or of an executive
officer, manager, director, or person in control of the licensee for
(f) A charge or conviction of an agent for a felony.
A licensee that is a money services business under the
regulations adopted pursuant to the United States Bank Secrecy Act
(31 C.F.R. Part 103) and the agents of the licensee that are money
services businesses shall comply with those regulations.
(a) A licensee shall maintain the following records for
determining its compliance with this division for at least three
(1) A record of each payment instrument or stored value obligation
(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
(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
(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