Senate Bill 1580 Summary

• Repeals and replaces Arizona's money transmitter licensing law (title 6, chapter 12, article 1) with comprehensive new regulations establishing definitions, licensure requirements, operational standards, and supervision procedures for money transmission businesses.

• Requires money transmitters to maintain net worth requirements (greater of $100,000 or 3% of assets), surety bonds (up to $500,000), and permissible investments equal to outstanding money transmission obligations to protect consumers.

• Establishes licensing application and approval procedures, including background investigations of key individuals and persons in control, with a 120-day approval timeline; permits multistate licensing processes through NMLS coordination.

• Mandates authorized delegates comply with written contracts and policies, maintain customer funds in trust, submit quarterly reports on condition and authorized delegate information, and maintain records for at least five years.

• Updates money laundering statutes (section 13-2317) and regulatory sandbox provisions (section 41-5605) to reference new money transmitter definitions and align with federal banking regulations and the Bank Secrecy Act.